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forward-looking statements are identified by words such as “ believe , ” “ will , ” “ may , ” “ estimate , ” “ continue , ” “ anticipate , ” “ intend , ” “ should , ” “ plan , ” “ expect , ” “ predict , ” “ could , ” “ potentially ” or the negative of these terms or similar expressions . you should read these statements carefully because they discuss future expectations , contain projections of future results of operations or financial condition , or state other “ forward-looking ” information . these statements relate to our future plans , objectives , expectations , intentions and financial performance and the assumptions that underlie these statements . these forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements . factors that might cause such a difference include , but are not limited to , those discussed in this report in part i , item 1a — “ risk factors , ” and elsewhere in this report . forward-looking statements are based on our management 's beliefs and assumptions and on information currently available to our management . these statements , like all statements in this report , speak only as of their date , and we undertake no obligation to update or revise these statements in light of future developments . we caution investors that our business and financial performance are subject to substantial risks and uncertainties . overview we are a clinical-stage bio-pharmaceutical company focused on fighting cancer by discovering and developing novel small molecule oncology drugs that target tumor and immune cell metabolism . tumor metabolism and immuno-oncology have emerged as promising new fields for cancer drug discovery , and recent clinical successes with therapeutic agents in each field have demonstrated the potential to create fundamentally new therapies for cancer patients . with our unique oncometabolism approach , we have discovered two small molecule drug candidates that are currently in clinical development . these agents take advantage of the unique metabolic requirements of tumor cells and cancer-fighting immune cells . our lead product candidate , cb-839 , is an internally discovered , first-in-class oral inhibitor of glutaminase , a critical enzyme in tumor cells . our strategy is to develop cb-839 as combination therapy with approved agents , in order to improve the treatment of patients with cancer . we are currently evaluating cb‑839 in multiple phase 2 trials in patients with renal cell carcinoma , triple negative breast cancer , and other solid tumors . cb-839 is currently in a phase 1/2 trial in combination with nivolumab for the treatment of solid tumors . our product candidate , incb001158 , also known as cb-1158 , is a first-in-class oral inhibitor of arginase , an enzyme that depletes the amino acid arginine , a key metabolic nutrient for t‑cells , and it is being co-developed with incyte corporation , or incyte , for hematology and oncology indications . incb001158 is currently being tested in multiple phase 1/2 trials as a monotherapy and in combination with other anti-cancer agents . we are a fully integrated biopharmaceutical company with expertise in biology and chemistry , and our ongoing research efforts are focused on discovering additional product candidates against novel tumor metabolism and immunology targets . our lead product candidate , cb-839 , takes advantage of the pronounced dependency many cancers have on the nutrient glutamine for growth and survival . cb-839 inhibits glutaminase , an enzyme required by cancer cells to utilize glutamine effectively . in preclinical studies , cb-839 demonstrated broad antitumor activity in tumor cell lines , inhibited the growth of human tumors in animal models , and was well-tolerated in toxicity studies . cb-839 was also synergistic with several different classes of approved , standard of care cancer therapeutics . cb-839 may also have the potential to work in combination with immuno-oncology , or i-o therapeutics . glutamine , which is frequently depleted in the tumor microenvironment due to avid uptake by tumor cells , has been shown to be an important nutrient for t-cell proliferation . administration of cb-839 to tumor-bearing animals substantially enhances the anti-tumor activity of checkpoint inhibitors and thereby enables t-cells to proliferate . we believe cb-839 has the potential to be an important new therapeutic agent with a novel mechanism of action for the treatment of a broad range of cancers , and is the only selective glutaminase inhibitor currently in clinical trials . we currently retain all commercial rights to cb-839 and have been granted a u.s. patent , which includes composition of matter coverage for cb-839 through 2032. our product candidate incb001158 , is a potent and selective orally bioavailable inhibitor of the enzyme arginase , that was discovered at calithera and is being co-developed with incyte . arginase depletes arginine , a nutrient that is critical for the activation and proliferation of the body 's cancer-fighting immune cells , such as cytotoxic t-cells and natural killer ( nk ) -cells . during normal activation of the immune system , arginase , which is expressed by suppressive myeloid immune cells , plays an important role in halting t-cell proliferation . but in many tumors , including lung , gastrointestinal , bladder , renal cancer , squamous cell cancer of the head and neck , and acute myeloid leukemia , arginase-expressing myeloid cells accumulate and maintain an immunosuppressive 46 environment , bl ocking the ability of t-cells and nk-cells to kill cancer cells . story_separator_special_tag general and administrative general and administrative expenses increased $ 1.5 million , or 17 % , from $ 9.1 million for 2015 to $ 10.6 million for 2016. the increase was due to an increase of $ 1.2 million in personnel-related costs as a result of higher headcount , salary increases and stock-based compensation expense , $ 0.3 million due to a one-time severance charge related to a former employee , and an increase of $ 0.2 million in professional services costs primarily related to legal costs to support our patent portfolio , partially offset by a decrease of $ 0.2 million for a payment to a third party related to a terminated license arrangement . liquidity and capital resources as of december 31 , 2017 , we had cash , cash equivalents and investments totaling $ 186.2 million . our operations have been financed by net proceeds from the sale of shares of our capital stock and payments from the incyte collaboration agreement . 51 in august 2017 , we filed a shelf registration statement on form s-3 with the securities and exchange commission which permits the offering , issuance and sale by us of up to a maximum aggregate offering price of $ 250.0 million of our common stock , or the 2017 registration statement , replacing the shelf registration statement on form s-3 we filed with the securities and exchange commission in november 2015 , which permitted the offering , issuance and sale by us of up to a maximum aggregate offering price of $ 150.0 million of our common stock , or the 2015 registration statement . $ 50.0 million of the maximum aggregate offering price of $ 150.0 million was issued and sold pursuant to an atm for sales of our common stock under a sales agreement with cowen and company , llc , or cowen , our placement agent , under our 2015 registration statement , or the 2015 atm . as of december 31 , 2017 , $ 248.3 million of our common stock remained available for sale pursuant to the 2017 registration statement , of which up to $ 48.3 million may be issued and sold pursuant to an at-the-market offering program , or 2017 atm program , for sales of our common stock under a sales agreement with cowen , subject to cert ain conditions as specified in the sales agreement . during the year ended december 31 , 2017 , we sold an aggregate of : 7,854,500 shares of common stock pursuant to an underwriting agreement with leerink partners llc as representative of the several underwriters at a public offering price of $ 10.25 per share for gross proceeds of $ 80.5 million , resulting in net proceeds of $ 75.4 million after deducting underwriting fees and offering expenses under our 2015 registration statement . 4,351,114 shares of common stock pursuant to our 2015 atm and 2017 atm , at an average price of approximately $ 9.11 per share for gross proceeds of $ 39.6 million , resulting in net proceeds of $ 38.3 million after deducting underwriting fees and offering expenses ; and 1 , 720 ,430 shares of common stock pursuant to our stock purchase agreement with incyte , at a price of $ 4.65 per share for gross proceeds of $ 8.0 million , resulting in net proceeds of $ 7.9 million after deducting offering expenses under our 2015 registration statement . our primary uses of cash are to fund operating expenses , primarily research and development expenditures . cash used to fund operating expenses is impacted by the timing of when we pay these expenses , as reflected in the change in our outstanding accounts payable and accrued expenses . we believe that our existing cash , cash equivalents and investments as of december 31 , 2017 will be sufficient for us to meet our current operating plan for at least the twelve-month period following the filing of our 2017 form 10-k. however , our forecast of the period of time through which our financial resources will be adequate to support our operations is a forward-looking statement that involves risks and uncertainties , and actual results could vary materially . in order to complete the process of obtaining regulatory approval for our product candidates and to build the sales , marketing and distribution infrastructure that we believe will be necessary to commercialize our product candidates , if approved , we will require substantial additional funding . we have based our projections of operating capital requirements on assumptions that may prove to be incorrect and we may use all of our available capital resources sooner than we expect . because of the numerous risks and uncertainties associated with research , development and commercialization of pharmaceutical products , we are unable to estimate the exact amount of our operating capital requirements . our future funding requirements will depend on many factors , including , but not limited to : the timing and costs of our planned clinical trials for our product candidates ; the timing and costs of our planned preclinical studies of our product candidates ; our success in establishing and scaling commercial manufacturing capabilities ; the number and characteristics of product candidates that we pursue ; the outcome , timing and costs of seeking regulatory approvals ; subject to receipt of regulatory approval , revenue received from commercial sales of our product candidates ; the terms and timing of any future collaborations , licensing , consulting or other arrangements that we may establish ; the amount and timing of any payments we may be required to make in connection with the licensing , filing , prosecution , maintenance , defense and enforcement of any patents or patent applications or other intellectual property rights ; and the extent to which we in-license or acquire other products and technologies . we plan to continue to fund our operations and capital funding needs through reimbursement of expenses under our

cash flows from operating activities cash provided by operating activities for the year ended december 31 , 2017 was $ 13.8 million . our net loss of $ 27.8 million was offset in part by non-cash charges of $ 5.5 million of stock-based compensation and $ 0.8 million for depreciation and amortization . the change in operating assets and liabilities was primarily related to a $ 31.0 million increase in deferred revenue due to our incyte collaboration agreement and a $ 5.3 million increase primarily due to the timing of payments for our clinical trial and manufacturing activities , partially offset by a $ 1.1 million increase in the receivables related to our collaboration agreements , primarily the incyte collaboration agreement . cash used in operating activities for the year ended december 31 , 2016 was $ 31.0 million , consisting of a net loss of $ 38.0 million , which was offset by non-cash charges $ 0.9 million for depreciation and amortization expense and $ 4.3 million for stock-based compensation . the change in our net operating assets and liabilities of $ 1.8 million was primarily due to the timing of payments for our clinical trial and manufacturing activities .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash flows from operating activities cash provided by operating activities for the year ended december 31 , 2017 was $ 13.8 million . our net loss of $ 27.8 million was offset in part by non-cash charges of $ 5.5 million of stock-based compensation and $ 0.8 million for depreciation and amortization . the change in operating assets and liabilities was primarily related to a $ 31.0 million increase in deferred revenue due to our incyte collaboration agreement and a $ 5.3 million increase primarily due to the timing of payments for our clinical trial and manufacturing activities , partially offset by a $ 1.1 million increase in the receivables related to our collaboration agreements , primarily the incyte collaboration agreement . cash used in operating activities for the year ended december 31 , 2016 was $ 31.0 million , consisting of a net loss of $ 38.0 million , which was offset by non-cash charges $ 0.9 million for depreciation and amortization expense and $ 4.3 million for stock-based compensation . the change in our net operating assets and liabilities of $ 1.8 million was primarily due to the timing of payments for our clinical trial and manufacturing activities . ``` Suspicious Activity Report : forward-looking statements are identified by words such as “ believe , ” “ will , ” “ may , ” “ estimate , ” “ continue , ” “ anticipate , ” “ intend , ” “ should , ” “ plan , ” “ expect , ” “ predict , ” “ could , ” “ potentially ” or the negative of these terms or similar expressions . you should read these statements carefully because they discuss future expectations , contain projections of future results of operations or financial condition , or state other “ forward-looking ” information . these statements relate to our future plans , objectives , expectations , intentions and financial performance and the assumptions that underlie these statements . these forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements . factors that might cause such a difference include , but are not limited to , those discussed in this report in part i , item 1a — “ risk factors , ” and elsewhere in this report . forward-looking statements are based on our management 's beliefs and assumptions and on information currently available to our management . these statements , like all statements in this report , speak only as of their date , and we undertake no obligation to update or revise these statements in light of future developments . we caution investors that our business and financial performance are subject to substantial risks and uncertainties . overview we are a clinical-stage bio-pharmaceutical company focused on fighting cancer by discovering and developing novel small molecule oncology drugs that target tumor and immune cell metabolism . tumor metabolism and immuno-oncology have emerged as promising new fields for cancer drug discovery , and recent clinical successes with therapeutic agents in each field have demonstrated the potential to create fundamentally new therapies for cancer patients . with our unique oncometabolism approach , we have discovered two small molecule drug candidates that are currently in clinical development . these agents take advantage of the unique metabolic requirements of tumor cells and cancer-fighting immune cells . our lead product candidate , cb-839 , is an internally discovered , first-in-class oral inhibitor of glutaminase , a critical enzyme in tumor cells . our strategy is to develop cb-839 as combination therapy with approved agents , in order to improve the treatment of patients with cancer . we are currently evaluating cb‑839 in multiple phase 2 trials in patients with renal cell carcinoma , triple negative breast cancer , and other solid tumors . cb-839 is currently in a phase 1/2 trial in combination with nivolumab for the treatment of solid tumors . our product candidate , incb001158 , also known as cb-1158 , is a first-in-class oral inhibitor of arginase , an enzyme that depletes the amino acid arginine , a key metabolic nutrient for t‑cells , and it is being co-developed with incyte corporation , or incyte , for hematology and oncology indications . incb001158 is currently being tested in multiple phase 1/2 trials as a monotherapy and in combination with other anti-cancer agents . we are a fully integrated biopharmaceutical company with expertise in biology and chemistry , and our ongoing research efforts are focused on discovering additional product candidates against novel tumor metabolism and immunology targets . our lead product candidate , cb-839 , takes advantage of the pronounced dependency many cancers have on the nutrient glutamine for growth and survival . cb-839 inhibits glutaminase , an enzyme required by cancer cells to utilize glutamine effectively . in preclinical studies , cb-839 demonstrated broad antitumor activity in tumor cell lines , inhibited the growth of human tumors in animal models , and was well-tolerated in toxicity studies . cb-839 was also synergistic with several different classes of approved , standard of care cancer therapeutics . cb-839 may also have the potential to work in combination with immuno-oncology , or i-o therapeutics . glutamine , which is frequently depleted in the tumor microenvironment due to avid uptake by tumor cells , has been shown to be an important nutrient for t-cell proliferation . administration of cb-839 to tumor-bearing animals substantially enhances the anti-tumor activity of checkpoint inhibitors and thereby enables t-cells to proliferate . we believe cb-839 has the potential to be an important new therapeutic agent with a novel mechanism of action for the treatment of a broad range of cancers , and is the only selective glutaminase inhibitor currently in clinical trials . we currently retain all commercial rights to cb-839 and have been granted a u.s. patent , which includes composition of matter coverage for cb-839 through 2032. our product candidate incb001158 , is a potent and selective orally bioavailable inhibitor of the enzyme arginase , that was discovered at calithera and is being co-developed with incyte . arginase depletes arginine , a nutrient that is critical for the activation and proliferation of the body 's cancer-fighting immune cells , such as cytotoxic t-cells and natural killer ( nk ) -cells . during normal activation of the immune system , arginase , which is expressed by suppressive myeloid immune cells , plays an important role in halting t-cell proliferation . but in many tumors , including lung , gastrointestinal , bladder , renal cancer , squamous cell cancer of the head and neck , and acute myeloid leukemia , arginase-expressing myeloid cells accumulate and maintain an immunosuppressive 46 environment , bl ocking the ability of t-cells and nk-cells to kill cancer cells . story_separator_special_tag general and administrative general and administrative expenses increased $ 1.5 million , or 17 % , from $ 9.1 million for 2015 to $ 10.6 million for 2016. the increase was due to an increase of $ 1.2 million in personnel-related costs as a result of higher headcount , salary increases and stock-based compensation expense , $ 0.3 million due to a one-time severance charge related to a former employee , and an increase of $ 0.2 million in professional services costs primarily related to legal costs to support our patent portfolio , partially offset by a decrease of $ 0.2 million for a payment to a third party related to a terminated license arrangement . liquidity and capital resources as of december 31 , 2017 , we had cash , cash equivalents and investments totaling $ 186.2 million . our operations have been financed by net proceeds from the sale of shares of our capital stock and payments from the incyte collaboration agreement . 51 in august 2017 , we filed a shelf registration statement on form s-3 with the securities and exchange commission which permits the offering , issuance and sale by us of up to a maximum aggregate offering price of $ 250.0 million of our common stock , or the 2017 registration statement , replacing the shelf registration statement on form s-3 we filed with the securities and exchange commission in november 2015 , which permitted the offering , issuance and sale by us of up to a maximum aggregate offering price of $ 150.0 million of our common stock , or the 2015 registration statement . $ 50.0 million of the maximum aggregate offering price of $ 150.0 million was issued and sold pursuant to an atm for sales of our common stock under a sales agreement with cowen and company , llc , or cowen , our placement agent , under our 2015 registration statement , or the 2015 atm . as of december 31 , 2017 , $ 248.3 million of our common stock remained available for sale pursuant to the 2017 registration statement , of which up to $ 48.3 million may be issued and sold pursuant to an at-the-market offering program , or 2017 atm program , for sales of our common stock under a sales agreement with cowen , subject to cert ain conditions as specified in the sales agreement . during the year ended december 31 , 2017 , we sold an aggregate of : 7,854,500 shares of common stock pursuant to an underwriting agreement with leerink partners llc as representative of the several underwriters at a public offering price of $ 10.25 per share for gross proceeds of $ 80.5 million , resulting in net proceeds of $ 75.4 million after deducting underwriting fees and offering expenses under our 2015 registration statement . 4,351,114 shares of common stock pursuant to our 2015 atm and 2017 atm , at an average price of approximately $ 9.11 per share for gross proceeds of $ 39.6 million , resulting in net proceeds of $ 38.3 million after deducting underwriting fees and offering expenses ; and 1 , 720 ,430 shares of common stock pursuant to our stock purchase agreement with incyte , at a price of $ 4.65 per share for gross proceeds of $ 8.0 million , resulting in net proceeds of $ 7.9 million after deducting offering expenses under our 2015 registration statement . our primary uses of cash are to fund operating expenses , primarily research and development expenditures . cash used to fund operating expenses is impacted by the timing of when we pay these expenses , as reflected in the change in our outstanding accounts payable and accrued expenses . we believe that our existing cash , cash equivalents and investments as of december 31 , 2017 will be sufficient for us to meet our current operating plan for at least the twelve-month period following the filing of our 2017 form 10-k. however , our forecast of the period of time through which our financial resources will be adequate to support our operations is a forward-looking statement that involves risks and uncertainties , and actual results could vary materially . in order to complete the process of obtaining regulatory approval for our product candidates and to build the sales , marketing and distribution infrastructure that we believe will be necessary to commercialize our product candidates , if approved , we will require substantial additional funding . we have based our projections of operating capital requirements on assumptions that may prove to be incorrect and we may use all of our available capital resources sooner than we expect . because of the numerous risks and uncertainties associated with research , development and commercialization of pharmaceutical products , we are unable to estimate the exact amount of our operating capital requirements . our future funding requirements will depend on many factors , including , but not limited to : the timing and costs of our planned clinical trials for our product candidates ; the timing and costs of our planned preclinical studies of our product candidates ; our success in establishing and scaling commercial manufacturing capabilities ; the number and characteristics of product candidates that we pursue ; the outcome , timing and costs of seeking regulatory approvals ; subject to receipt of regulatory approval , revenue received from commercial sales of our product candidates ; the terms and timing of any future collaborations , licensing , consulting or other arrangements that we may establish ; the amount and timing of any payments we may be required to make in connection with the licensing , filing , prosecution , maintenance , defense and enforcement of any patents or patent applications or other intellectual property rights ; and the extent to which we in-license or acquire other products and technologies . we plan to continue to fund our operations and capital funding needs through reimbursement of expenses under our

in addition , our operating results can also be improved through our company-wide efforts related to improving property level performance . the company currently estimates , based on its current domestic portfolio of hotels under franchise , that a 1 % change in revenue per available room ( `` revpar `` ) or rooms under franchise would increase or decrease royalty revenues by approximately $ 3.6 million and a 1 basis point change in the company 's effective royalty rate would increase or decrease annual domestic royalties by approximately $ 0.8 million . in addition to these revenues , we also collect marketing and reservation system fees to support centralized marketing and reservation activities for the franchise system . the principal factors that affect the company 's results are : the number and relative mix of franchised hotel rooms in the various hotel lodging price categories ; growth in the number of hotel rooms under franchise ; occupancy and room rates achieved by the hotels under franchise ; the effective royalty rate achieved ; the level of franchise sales and relicensing activity ; and our ability to manage costs . the number of rooms at franchised properties and occupancy and room rates at those properties significantly affect the company 's results because our fees are based upon room revenues or the number of rooms at franchised hotels . the key industry standard for measuring hotel-operating performance is revpar , which is calculated by multiplying the percentage of occupied rooms by the average daily room rate realized . our variable overhead costs associated with franchise system growth of our established brands have historically been less than incremental royalty fees generated from new franchises . accordingly , continued growth of our franchise business should enable us to realize benefits from the operating leverage in place and improve operating results . we are required by our franchise agreements to use the marketing and reservation system fees we collect for system-wide marketing and reservation activities . these expenditures , which include advertising costs and costs to maintain our central reservations and property management systems , help to enhance awareness and consumer preference for our brands and deliver guests to our franchisees . greater awareness and preference promotes long-term growth in business delivery to our franchisees and increases the desirability of our brands to hotel owners and developers , which ultimately increases franchise fees earned by the company . our company articulates its mission as a commitment to our franchisees ' profitability by providing our franchisees with hotel franchises that strive to generate the highest return on investment of any hotel franchise . we have developed an operating system dedicated to our franchisees ' success that focuses on delivering guests to our franchised hotels and reducing costs for our hotel owners . we believe that executing our strategic priorities creates value for our shareholders . our company focuses on two key goals : profitable growth . our success is dependent on improving the performance of our hotels , increasing our system size by selling additional hotel franchises , effective royalty rate improvement and maintaining a disciplined cost structure . we attempt to improve our franchisees ' revenues and overall profitability by providing a variety of products and services designed to increase business delivery to and or reduce operating and development costs for our franchisees . these products and services include national marketing campaigns , maintaining a guest loyalty program , a central reservation system , property and yield management programs and systems , revenue management services , quality assurance standards and qualified vendor 38 relationships . we believe that healthy brands , which deliver a compelling return on investment for franchisees , will enable us to sell additional hotel franchises and raise royalty rates . we have multiple brands that meet the needs of many types of guests , and can be developed at various price points and applied to both new and existing hotels . this ensures that we have brands suitable for creating growth in a variety of market conditions . improving the performance of the hotels under franchise , growing the system through additional franchise sales and improving franchise agreement pricing while maintaining a disciplined cost structure are the keys to profitable growth . maximizing financial returns and creating value for shareholders . our capital allocation decisions , including capital structure and uses of capital , are intended to maximize our return on invested capital and create value for our shareholders . we believe our strong and predictable cash flows create a strong financial position that provides us a competitive advantage . we maintain a capital structure that generates high financial returns and use our excess cash flow to provide returns to our shareholders primarily through share repurchases , dividends or investing in growth opportunities . historically , we have returned value to our shareholders through share repurchases and dividends . in 1998 , we instituted a share repurchase program which has generated substantial value for our shareholders . since the program 's inception through december 31 , 2018 , we have repurchased 50.5 million shares ( including 33.0 million prior to the two-for-one stock split effected in october 2005 ) of common stock at a total cost of $ 1.4 billion . considering the effect of the two-for-one stock split , the company has repurchased 83.5 million shares at an average price of $ 16.74 per share . the company purchased 1.8 million shares of common stock under the share repurchase program at a total cost of $ 141.2 million for the year ended december 31 , 2018 . at december 31 , 2018 , we had approximately 2.2 million shares remaining under the current share repurchase authorization . we currently believe that our cash flows from operations will support our ability to complete the current repurchase authorization . upon completion of the current authorization , our board of directors will evaluate the advisability of additional share repurchases . story_separator_special_tag operating income increased $ 102.6 million primarily due to a $ 40.9 million or 10 % increase in the company 's hotel franchising revenues , a $ 70.9 million change in the net surplus/ deficit generated from marketing and reservation system activities , and a $ 2.0 million increase in non-hotel franchising revenues , partially offset by a $ 11.1 million increase in sg & a expenses . the change in the net surplus/ deficit generated from marketing and reservation system activities results from a change in the company 's expiration policy for points outstanding under the choice privileges loyalty membership program , resulting in an increase to the corresponding liabilities and charge to the marketing and reservation system revenues . hotel franchising revenues hotel franchising revenues were $ 430.9 million for the year ended december 31 , 2017 compared to $ 390.0 million for the year ended december 31 , 2016 , a $ 40.9 million or 10 % increase . the increase in hotel franchising revenues is primarily due to a $ 24.0 million or 8 % increase in royalty revenues , a $ 4.6 million or 13 % increase in procurement services revenues , $ 3.3 million or 17 % increase in initial franchise and relicensing fees , and a $ 8.9 million or 53 % increase in non-compliance , contract termination fees and other franchise revenues . 46 royalty fees domestic royalty fees for the year ended december 31 , 2017 increased $ 22.5 million to $ 320.2 million from $ 297.7 million in 2016 , an increase of 8 % . the increase in domestic royalties reflect a 2.5 % increase in domestic revpar , a 2.1 % increase in the number of domestic franchised hotel rooms , and an increase in the effective royalty rate . system-wide revpar increased due to a 1.7 % increase in average daily rates accompanied by a 50 basis point increase in occupancy rates . the company 's effective royalty rate of the domestic hotel system increased from 4.41 % for the year ended december 31 , 2016 to 4.60 % for the year ended december 31 , 2017 . the increase in the effective royalty rate is attributable to improved royalty rate pricing on recently executed domestic franchise agreements as well as annual contractual royalty rate increases contained in existing franchise agreements . a summary of the company 's domestic franchised hotels operating information for the years ending december 31 , 2017 and 2016 is as follows : replace_table_token_17_th the number of total domestic rooms on-line increased by 2.1 % to 413,015 rooms as of december 31 , 2017 from 404,498 as of december 31 , 2016 . the total number of domestic hotels on-line increased by 2.6 % to 5,501 as of december 31 , 2017 , from 5,362 as of december 31 , 2016 . our unit growth has outpaced the growth in our rooms primarily due to the company 's multi-year strategy to rejuvenate the comfort family of brands by terminating under-performing hotels that no longer meet the comfort brand standards . hotels terminated from the comfort brand family may be repositioned to a more suitable brand within the company 's family of brands or exit our franchise system . as a result of this strategy our unit growth has been driven primarily by brands with lower average room counts than the comfort family of brands . 47 a summary of the domestic hotels and available rooms at december 31 , 2017 and 2016 by brand is as follows : replace_table_token_18_th international royalty fees increased $ 1.6 million from $ 20.0 million in the year ended december 31 , 2016 to $ 21.6 million for the same period in 2017 primarily due to an increase in the number of rooms franchised and improvements in revpar and effective royalty rates . international rooms increased by 934 to 112,558 as of december 31 , 2017 from 111,624 as of december 31 , 2016 . the total number of hotels decreased from 1,152 at december 31 , 2016 to 1,126 at december 31 , 2017 . international rooms grew at a faster pace than the number of hotels due to a focus on new entrants with higher per room counts than currently in the company 's international franchised hotel portfolio and the termination of hotels with lower room counts . initial franchise and relicensing fees initial franchise fees are fees paid to the company when a franchisee executes a franchise agreement ; relicensing fees include fees charged to new owners of a franchised property whenever an ownership change occurs and the property remains in the franchise system , as well as fees required to renew existing franchise agreements . during 2017 , the company awarded 704 domestic franchise agreements representing 53,042 rooms compared to 645 franchising agreements representing 50,336 rooms for 2016. domestic franchise agreements executed for new construction hotels totaled 247 representing 18,014 rooms during the year ended december 31 , 2017 compared to 201 contracts representing 15,566 rooms for the year ended december 31 , 2016 . conversion hotel executed franchise agreements totaled 457 representing 35,028 rooms for the year ended december 31 , 2017 compared to 444 agreements representing 34,770 rooms for the year ended december 31 , 2016 . the company executed 439 domestic relicensing contracts during the year ended december 31 , 2017 compared to 412 executed during the year ended december 31 , 2016 . the company executed 26 domestic renewals agreements during the year ended december 31 , 2017 compared to 42 executed during the year ended december 31 , 2016 . initial franchise and relicensing fees are generally collected at the time the franchise agreement is executed . however , the recognition of revenue is deferred until the hotel is open or the franchise agreement is terminated . upon hotel opening , revenue is recognized ratably as services are provided over the enforceable period of the franchise license agreement .

liquidity and capital resources : historically , the company has generated significant cash flows from operations . since our business has not historically required significant reinvestment of capital , we typically utilize cash in ways that management believes provide the greatest returns to our shareholders which include share repurchases and dividends . however , we may determine to utilize cash for acquisitions and other investments in the future . we believe the company 's cash flow from operations and available financing capacity is sufficient to meet the expected future operating , investing and financing needs of the business . refer to md & a heading `` liquidity and capital resources '' for additional analysis . inflation : inflation has been moderate in recent years and has not had a significant impact on our business . non-gaap financial statement measurements the company utilizes certain measures which do not conform to generally accepted accounting principles accepted in the united states ( `` gaap '' ) when analyzing and discussing its results with the investment community . this information should not be considered as an alternative to any measure of performance as promulgated under gaap . the company 's calculation of these measurements may be different from the calculations used by other companies and therefore , comparability may be limited . we have included a reconciliation of these measures to the comparable gaap measurement below as well as our reasons for reporting these non-gaap measures . hotel franchising revenues : the company utilizes franchising revenues , which exclude revenues from marketing and reservation system activities , saas technology solutions divisions , vacation rental activities , and revenue generated from the ownership of an office building that is leased to a third-party , rather than total revenues when analyzing the performance of the business . marketing and reservation activities are excluded from hotel franchising revenues since the company is contractually required by its franchise agreements to utilize the fees collected specifically for franchisee marketing and reservation activities .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources : historically , the company has generated significant cash flows from operations . since our business has not historically required significant reinvestment of capital , we typically utilize cash in ways that management believes provide the greatest returns to our shareholders which include share repurchases and dividends . however , we may determine to utilize cash for acquisitions and other investments in the future . we believe the company 's cash flow from operations and available financing capacity is sufficient to meet the expected future operating , investing and financing needs of the business . refer to md & a heading `` liquidity and capital resources '' for additional analysis . inflation : inflation has been moderate in recent years and has not had a significant impact on our business . non-gaap financial statement measurements the company utilizes certain measures which do not conform to generally accepted accounting principles accepted in the united states ( `` gaap '' ) when analyzing and discussing its results with the investment community . this information should not be considered as an alternative to any measure of performance as promulgated under gaap . the company 's calculation of these measurements may be different from the calculations used by other companies and therefore , comparability may be limited . we have included a reconciliation of these measures to the comparable gaap measurement below as well as our reasons for reporting these non-gaap measures . hotel franchising revenues : the company utilizes franchising revenues , which exclude revenues from marketing and reservation system activities , saas technology solutions divisions , vacation rental activities , and revenue generated from the ownership of an office building that is leased to a third-party , rather than total revenues when analyzing the performance of the business . marketing and reservation activities are excluded from hotel franchising revenues since the company is contractually required by its franchise agreements to utilize the fees collected specifically for franchisee marketing and reservation activities . ``` Suspicious Activity Report : in addition , our operating results can also be improved through our company-wide efforts related to improving property level performance . the company currently estimates , based on its current domestic portfolio of hotels under franchise , that a 1 % change in revenue per available room ( `` revpar `` ) or rooms under franchise would increase or decrease royalty revenues by approximately $ 3.6 million and a 1 basis point change in the company 's effective royalty rate would increase or decrease annual domestic royalties by approximately $ 0.8 million . in addition to these revenues , we also collect marketing and reservation system fees to support centralized marketing and reservation activities for the franchise system . the principal factors that affect the company 's results are : the number and relative mix of franchised hotel rooms in the various hotel lodging price categories ; growth in the number of hotel rooms under franchise ; occupancy and room rates achieved by the hotels under franchise ; the effective royalty rate achieved ; the level of franchise sales and relicensing activity ; and our ability to manage costs . the number of rooms at franchised properties and occupancy and room rates at those properties significantly affect the company 's results because our fees are based upon room revenues or the number of rooms at franchised hotels . the key industry standard for measuring hotel-operating performance is revpar , which is calculated by multiplying the percentage of occupied rooms by the average daily room rate realized . our variable overhead costs associated with franchise system growth of our established brands have historically been less than incremental royalty fees generated from new franchises . accordingly , continued growth of our franchise business should enable us to realize benefits from the operating leverage in place and improve operating results . we are required by our franchise agreements to use the marketing and reservation system fees we collect for system-wide marketing and reservation activities . these expenditures , which include advertising costs and costs to maintain our central reservations and property management systems , help to enhance awareness and consumer preference for our brands and deliver guests to our franchisees . greater awareness and preference promotes long-term growth in business delivery to our franchisees and increases the desirability of our brands to hotel owners and developers , which ultimately increases franchise fees earned by the company . our company articulates its mission as a commitment to our franchisees ' profitability by providing our franchisees with hotel franchises that strive to generate the highest return on investment of any hotel franchise . we have developed an operating system dedicated to our franchisees ' success that focuses on delivering guests to our franchised hotels and reducing costs for our hotel owners . we believe that executing our strategic priorities creates value for our shareholders . our company focuses on two key goals : profitable growth . our success is dependent on improving the performance of our hotels , increasing our system size by selling additional hotel franchises , effective royalty rate improvement and maintaining a disciplined cost structure . we attempt to improve our franchisees ' revenues and overall profitability by providing a variety of products and services designed to increase business delivery to and or reduce operating and development costs for our franchisees . these products and services include national marketing campaigns , maintaining a guest loyalty program , a central reservation system , property and yield management programs and systems , revenue management services , quality assurance standards and qualified vendor 38 relationships . we believe that healthy brands , which deliver a compelling return on investment for franchisees , will enable us to sell additional hotel franchises and raise royalty rates . we have multiple brands that meet the needs of many types of guests , and can be developed at various price points and applied to both new and existing hotels . this ensures that we have brands suitable for creating growth in a variety of market conditions . improving the performance of the hotels under franchise , growing the system through additional franchise sales and improving franchise agreement pricing while maintaining a disciplined cost structure are the keys to profitable growth . maximizing financial returns and creating value for shareholders . our capital allocation decisions , including capital structure and uses of capital , are intended to maximize our return on invested capital and create value for our shareholders . we believe our strong and predictable cash flows create a strong financial position that provides us a competitive advantage . we maintain a capital structure that generates high financial returns and use our excess cash flow to provide returns to our shareholders primarily through share repurchases , dividends or investing in growth opportunities . historically , we have returned value to our shareholders through share repurchases and dividends . in 1998 , we instituted a share repurchase program which has generated substantial value for our shareholders . since the program 's inception through december 31 , 2018 , we have repurchased 50.5 million shares ( including 33.0 million prior to the two-for-one stock split effected in october 2005 ) of common stock at a total cost of $ 1.4 billion . considering the effect of the two-for-one stock split , the company has repurchased 83.5 million shares at an average price of $ 16.74 per share . the company purchased 1.8 million shares of common stock under the share repurchase program at a total cost of $ 141.2 million for the year ended december 31 , 2018 . at december 31 , 2018 , we had approximately 2.2 million shares remaining under the current share repurchase authorization . we currently believe that our cash flows from operations will support our ability to complete the current repurchase authorization . upon completion of the current authorization , our board of directors will evaluate the advisability of additional share repurchases . story_separator_special_tag operating income increased $ 102.6 million primarily due to a $ 40.9 million or 10 % increase in the company 's hotel franchising revenues , a $ 70.9 million change in the net surplus/ deficit generated from marketing and reservation system activities , and a $ 2.0 million increase in non-hotel franchising revenues , partially offset by a $ 11.1 million increase in sg & a expenses . the change in the net surplus/ deficit generated from marketing and reservation system activities results from a change in the company 's expiration policy for points outstanding under the choice privileges loyalty membership program , resulting in an increase to the corresponding liabilities and charge to the marketing and reservation system revenues . hotel franchising revenues hotel franchising revenues were $ 430.9 million for the year ended december 31 , 2017 compared to $ 390.0 million for the year ended december 31 , 2016 , a $ 40.9 million or 10 % increase . the increase in hotel franchising revenues is primarily due to a $ 24.0 million or 8 % increase in royalty revenues , a $ 4.6 million or 13 % increase in procurement services revenues , $ 3.3 million or 17 % increase in initial franchise and relicensing fees , and a $ 8.9 million or 53 % increase in non-compliance , contract termination fees and other franchise revenues . 46 royalty fees domestic royalty fees for the year ended december 31 , 2017 increased $ 22.5 million to $ 320.2 million from $ 297.7 million in 2016 , an increase of 8 % . the increase in domestic royalties reflect a 2.5 % increase in domestic revpar , a 2.1 % increase in the number of domestic franchised hotel rooms , and an increase in the effective royalty rate . system-wide revpar increased due to a 1.7 % increase in average daily rates accompanied by a 50 basis point increase in occupancy rates . the company 's effective royalty rate of the domestic hotel system increased from 4.41 % for the year ended december 31 , 2016 to 4.60 % for the year ended december 31 , 2017 . the increase in the effective royalty rate is attributable to improved royalty rate pricing on recently executed domestic franchise agreements as well as annual contractual royalty rate increases contained in existing franchise agreements . a summary of the company 's domestic franchised hotels operating information for the years ending december 31 , 2017 and 2016 is as follows : replace_table_token_17_th the number of total domestic rooms on-line increased by 2.1 % to 413,015 rooms as of december 31 , 2017 from 404,498 as of december 31 , 2016 . the total number of domestic hotels on-line increased by 2.6 % to 5,501 as of december 31 , 2017 , from 5,362 as of december 31 , 2016 . our unit growth has outpaced the growth in our rooms primarily due to the company 's multi-year strategy to rejuvenate the comfort family of brands by terminating under-performing hotels that no longer meet the comfort brand standards . hotels terminated from the comfort brand family may be repositioned to a more suitable brand within the company 's family of brands or exit our franchise system . as a result of this strategy our unit growth has been driven primarily by brands with lower average room counts than the comfort family of brands . 47 a summary of the domestic hotels and available rooms at december 31 , 2017 and 2016 by brand is as follows : replace_table_token_18_th international royalty fees increased $ 1.6 million from $ 20.0 million in the year ended december 31 , 2016 to $ 21.6 million for the same period in 2017 primarily due to an increase in the number of rooms franchised and improvements in revpar and effective royalty rates . international rooms increased by 934 to 112,558 as of december 31 , 2017 from 111,624 as of december 31 , 2016 . the total number of hotels decreased from 1,152 at december 31 , 2016 to 1,126 at december 31 , 2017 . international rooms grew at a faster pace than the number of hotels due to a focus on new entrants with higher per room counts than currently in the company 's international franchised hotel portfolio and the termination of hotels with lower room counts . initial franchise and relicensing fees initial franchise fees are fees paid to the company when a franchisee executes a franchise agreement ; relicensing fees include fees charged to new owners of a franchised property whenever an ownership change occurs and the property remains in the franchise system , as well as fees required to renew existing franchise agreements . during 2017 , the company awarded 704 domestic franchise agreements representing 53,042 rooms compared to 645 franchising agreements representing 50,336 rooms for 2016. domestic franchise agreements executed for new construction hotels totaled 247 representing 18,014 rooms during the year ended december 31 , 2017 compared to 201 contracts representing 15,566 rooms for the year ended december 31 , 2016 . conversion hotel executed franchise agreements totaled 457 representing 35,028 rooms for the year ended december 31 , 2017 compared to 444 agreements representing 34,770 rooms for the year ended december 31 , 2016 . the company executed 439 domestic relicensing contracts during the year ended december 31 , 2017 compared to 412 executed during the year ended december 31 , 2016 . the company executed 26 domestic renewals agreements during the year ended december 31 , 2017 compared to 42 executed during the year ended december 31 , 2016 . initial franchise and relicensing fees are generally collected at the time the franchise agreement is executed . however , the recognition of revenue is deferred until the hotel is open or the franchise agreement is terminated . upon hotel opening , revenue is recognized ratably as services are provided over the enforceable period of the franchise license agreement .

related amounts in 2017 and 2016 were $ 157.6 million and $ 9.2 million , respectively . in may 2018 , we completed our investment of a 50 % ownership interest in a joint venture with mitsubishi electric corporation ( mitsubishi ) . the joint venture , reported within the climate segment , focuses on marketing , selling and supporting variable refrigerant flow ( vrf ) and ductless heating and air conditioning systems through trane , american standard and mitsubishi channels in the u.s. and select latin american countries . 20 in january 2018 , we acquired 100 % of the outstanding stock of ics group holdings limited ( ics cool energy ) . the acquired business , reported within the climate segment , specializes in the temporary rental of energy efficient chillers for commercial and industrial buildings across europe . it also sells , permanently installs and services high performance temperature control systems for all types of industrial processes . during 2017 , we acquired several businesses , including channel acquisitions , that complement existing products and services . acquisitions within the climate segment primarily consisted of independent dealers which support the ongoing strategy to expand our distribution network in north america . other acquisitions within the segment strengthen our product portfolio . acquisitions within the industrial segment primarily consisted of a telematics business which builds upon our growing portfolio of connected assets . in addition , other acquisitions within the segment expand sales and service channels across the globe . on february 6 , 2019 , we entered into a final , binding and irrevocable offer letter with silver ii gp holdings s.c.a . , an affiliate of bc partners advisors l.p. and the carlyle group ( the seller ) pursuant to which we made a binding offer to acquire the precision flow systems management business ( the business ) for approximately $ 1.45 billion in cash , subject to working capital and certain other adjustments ( the acquisition ) . the business is a manufacturer of precision flow control equipment including electric diaphragm pumps and controls that serve the global water , oil and gas , agriculture , industrial and specialty market segments . the offer is subject to completion of information and consultation processes with employee representative bodies of the business in applicable jurisdictions . if the offer is accepted , completion of the acquisition would be subject to customary closing conditions and expected to close mid-year 2019 subject to regulatory approvals . the results of the business will be included in our consolidated financial statements as of the date of acquisition and reported within the industrial segment . share repurchase program and dividends share repurchases are made from time to time in accordance with management 's capital allocation strategy , subject to market conditions and regulatory requirements . in february 2017 , our board of directors authorized the repurchase of up to $ 1.5 billion of our ordinary shares under a share repurchase program ( the 2017 authorization ) upon completion of the prior authorized share repurchase program . repurchases under the 2017 authorization began in may 2017 and ended in december 2018 , completing the program . in october 2018 , our board of directors authorized the repurchase of up to $ 1.5 billion of our ordinary shares upon completion of the 2017 authorization . however , no material amounts were repurchased under this program during 2018. in june 2018 , we announced an increase in our quarterly share dividend from $ 0.45 to $ 0.53 per ordinary share . this reflects an 18 % increase that began with our september 2018 payment and an 83 % increase since the beginning of 2016. issuance and redemption of senior notes in february 2018 , we issued $ 1.15 billion principal amount of senior notes in three tranches through an indirect , wholly-owned subsidiary . the tranches consist of $ 300 million aggregate principal amount of 2.900 % senior notes due 2021 , $ 550 million aggregate principal amount of 3.750 % senior notes due 2028 and $ 300 million aggregate principal amount of 4.300 % senior notes due 2048. in march 2018 , we used the proceeds to fund the redemption of $ 750 million aggregate principal amount of 6.875 % senior notes due 2018 and $ 350 million aggregate principal amount of 2.875 % senior notes due 2019 , with the remainder used for general corporate purposes . tax cuts and job act in december 2017 , the u.s. enacted the tax cuts and jobs act ( the act ) which made widespread changes to the internal revenue code . the act , among other things , reduced the u.s. federal corporate tax rate from 35 % to 21 % , requires companies to pay a transition tax on earnings of certain foreign subsidiaries that were previously not subject to u.s. tax and creates new income taxes on certain foreign sourced earnings . the sec issued staff accounting bulletin no . 118 ( sab 118 ) which provided guidance on accounting for the tax effects of the act and allowed for adjustments to provisional amounts during a measurement period of up to one year . in accordance with sab 118 , we made reasonable estimates related to ( 1 ) the remeasurement of u.s. deferred tax balances for the reduction in the tax rate ( 2 ) the liability for the transition tax and ( 3 ) the taxes accrued relating to the change in permanent reinvestment assertion for unremitted earnings of certain foreign subsidiaries . story_separator_special_tag % . this decrease was partially offset by the transition tax cost , a change in permanent reinvestment assertion on the unremitted earnings of certain foreign subsidiaries and a non-cash charge related to the establishment of a valuation allowance on certain net deferred tax assets in brazil . in the aggregate these items increased the effective tax rate by 13.7 % . in addition , the reduction was also driven by earnings in non-u.s. jurisdictions , which in aggregate , have a lower effective tax rate . revenues from non-u.s. jurisdictions accounts for approximately 35 % of our total revenues , such that a material portion of our pretax income was earned and taxed outside the u.s. at rates ranging from 0 % to 38 % . when comparing the results of multiple reporting periods , among other factors , the mix of earnings between u.s. and foreign jurisdictions can cause variability in our overall effective tax rate . the 2016 effective tax rate was 16.2 % which is lower than the u.s. statutory rate of 35 % primarily due to the tax treatment of the hussmann gain . the gain , which is not subject to tax under the relevant local tax laws , decreased the effective tax rate by 4.8 % . in addition , the reduction was also driven by earnings in non-u.s. jurisdictions , which in aggregate , have a lower effective tax rate . revenues from non-u.s. jurisdictions accounts for approximately 35 % of our total revenues , such that a material portion of our pretax income was earned and taxed outside the u.s. at rates ranging from 0 % to 38 % . when comparing the results of multiple reporting periods , among other factors , the mix of earnings between u.s. and foreign jurisdictions can cause variability in our overall effective tax rate . discontinued operations the components of discontinued operations , net of tax for the years ended december 31 are as follows : replace_table_token_15_th discontinued operations are retained costs from previously sold businesses including postretirement benefits , product liability and legal costs . in addition , we include costs associated with ingersoll-rand company for the settlement and defense of asbestos-related claims , insurance settlements on asbestos-related matters and the revaluation of its liability for potential future claims . for the year ended december 31 , 2016 , ongoing costs were more than offset by asbestos-related settlements with various insurance carriers . a portion of the tax benefit ( expense ) in each period represents adjustments for certain tax matters associated with the 2013 spin-off of our commercial and residential security business , now an independent public company operating under the name of allegion . liquidity and capital resources we assess our liquidity in terms of our ability to generate cash to fund our operating , investing and financing activities . in doing so , we review and analyze our current cash on hand , the number of days our sales are outstanding , inventory turns , capital expenditure commitments and income tax payments . our cash requirements primarily consist of the following : funding of working capital funding of capital expenditures dividend payments debt service requirements our primary sources of liquidity include cash balances on hand , cash flows from operations , proceeds from debt offerings , commercial paper , and borrowing availability under our existing credit facilities . we earn a significant amount of our operating income in jurisdictions where it is deemed to be permanently reinvested . our most prominent jurisdiction of operation is the u.s. we expect existing cash and cash equivalents available to the u.s. operations , the cash generated by our u.s. operations , our committed credit lines as well as our expected ability to access the capital and debt markets will be sufficient to fund our u.s. operating and capital needs for at least the next twelve months and thereafter for the foreseeable future . in addition , we expect existing non-u.s. cash and cash equivalents and the cash generated by our non-u.s. operations will be sufficient to fund our non-u.s. operating and capital needs for at least the next twelve months and thereafter for the foreseeable future . as of december 31 , 2018 , we had $ 903.4 million of cash and cash equivalents on hand , of which $ 689.7 million was held by non-u.s. subsidiaries . cash and cash equivalents held by our non-u.s. subsidiaries are generally available for use in our u.s. operations 28 via intercompany loans , equity infusions or via distributions from direct or indirectly owned non-u.s. subsidiaries for which we do not assert permanent reinvestment . as a result of the tax cuts and jobs act in 2017 , additional repatriation opportunities to access cash and cash equivalents held by non-u.s. subsidiaries have been created . in general , repatriation of cash to the u.s. can be completed with no significant incremental u.s. tax . however , to the extent that we repatriate funds from non-u.s. subsidiaries for which we assert permanent reinvestment to fund our u.s. operations , we would be required to accrue and pay applicable non-u.s. taxes . as of december 31 , 2018 , we currently have no plans to repatriate funds from subsidiaries for which we assert permanent reinvestment . share repurchases are made from time to time in accordance with management 's capital allocation strategy , subject to market conditions and regulatory requirements . in february 2017 , our board of directors authorized the repurchase of up to $ 1.5 billion of our ordinary shares under a share repurchase program ( the 2017 authorization ) upon completion of the prior authorized share repurchase program . repurchases under the 2017 authorization began in may 2017 and ended in december 2018 , completing the program . in october 2018 , our board of directors authorized the repurchase of up to $ 1.5 billion of our ordinary shares upon completion of the 2017 authorization

cash flows the following table reflects the major categories of cash flows for the years ended december 31 , respectively . for additional details , please see the consolidated statements of cash flows in the consolidated financial statements . replace_table_token_17_th operating activities net cash provided by continuing operating activities for the year ended december 31 , 2018 was $ 1,474.5 million , of which net income provided $ 1,662.0 million after adjusting for non-cash transactions . changes in other assets and liabilities used $ 187.5 million . improvements in accounts payable were offset by higher accounts receivable and inventory balances . net cash provided by continuing operating activities for the year ended december 31 , 2017 was $ 1,561.6 million , of which net income provided $ 1,642.1 million after adjusting for non-cash transactions . changes in other assets and liabilities used $ 80.5 million . improvements in accounts payable were offset by higher accounts receivable and inventory balances . net cash provided by continuing operating activities for the year ended december 31 , 2016 was $ 1,433.0 million , of which net income provided $ 1,449.8 million after adjusting for non-cash transactions . changes in other assets and liabilities used $ 16.8 million . improvements in accounts payable were offset by higher accounts receivable balances . investing activities cash flows from investing activities represents inflows and outflows regarding the purchase and sale of assets .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash flows the following table reflects the major categories of cash flows for the years ended december 31 , respectively . for additional details , please see the consolidated statements of cash flows in the consolidated financial statements . replace_table_token_17_th operating activities net cash provided by continuing operating activities for the year ended december 31 , 2018 was $ 1,474.5 million , of which net income provided $ 1,662.0 million after adjusting for non-cash transactions . changes in other assets and liabilities used $ 187.5 million . improvements in accounts payable were offset by higher accounts receivable and inventory balances . net cash provided by continuing operating activities for the year ended december 31 , 2017 was $ 1,561.6 million , of which net income provided $ 1,642.1 million after adjusting for non-cash transactions . changes in other assets and liabilities used $ 80.5 million . improvements in accounts payable were offset by higher accounts receivable and inventory balances . net cash provided by continuing operating activities for the year ended december 31 , 2016 was $ 1,433.0 million , of which net income provided $ 1,449.8 million after adjusting for non-cash transactions . changes in other assets and liabilities used $ 16.8 million . improvements in accounts payable were offset by higher accounts receivable balances . investing activities cash flows from investing activities represents inflows and outflows regarding the purchase and sale of assets . ``` Suspicious Activity Report : related amounts in 2017 and 2016 were $ 157.6 million and $ 9.2 million , respectively . in may 2018 , we completed our investment of a 50 % ownership interest in a joint venture with mitsubishi electric corporation ( mitsubishi ) . the joint venture , reported within the climate segment , focuses on marketing , selling and supporting variable refrigerant flow ( vrf ) and ductless heating and air conditioning systems through trane , american standard and mitsubishi channels in the u.s. and select latin american countries . 20 in january 2018 , we acquired 100 % of the outstanding stock of ics group holdings limited ( ics cool energy ) . the acquired business , reported within the climate segment , specializes in the temporary rental of energy efficient chillers for commercial and industrial buildings across europe . it also sells , permanently installs and services high performance temperature control systems for all types of industrial processes . during 2017 , we acquired several businesses , including channel acquisitions , that complement existing products and services . acquisitions within the climate segment primarily consisted of independent dealers which support the ongoing strategy to expand our distribution network in north america . other acquisitions within the segment strengthen our product portfolio . acquisitions within the industrial segment primarily consisted of a telematics business which builds upon our growing portfolio of connected assets . in addition , other acquisitions within the segment expand sales and service channels across the globe . on february 6 , 2019 , we entered into a final , binding and irrevocable offer letter with silver ii gp holdings s.c.a . , an affiliate of bc partners advisors l.p. and the carlyle group ( the seller ) pursuant to which we made a binding offer to acquire the precision flow systems management business ( the business ) for approximately $ 1.45 billion in cash , subject to working capital and certain other adjustments ( the acquisition ) . the business is a manufacturer of precision flow control equipment including electric diaphragm pumps and controls that serve the global water , oil and gas , agriculture , industrial and specialty market segments . the offer is subject to completion of information and consultation processes with employee representative bodies of the business in applicable jurisdictions . if the offer is accepted , completion of the acquisition would be subject to customary closing conditions and expected to close mid-year 2019 subject to regulatory approvals . the results of the business will be included in our consolidated financial statements as of the date of acquisition and reported within the industrial segment . share repurchase program and dividends share repurchases are made from time to time in accordance with management 's capital allocation strategy , subject to market conditions and regulatory requirements . in february 2017 , our board of directors authorized the repurchase of up to $ 1.5 billion of our ordinary shares under a share repurchase program ( the 2017 authorization ) upon completion of the prior authorized share repurchase program . repurchases under the 2017 authorization began in may 2017 and ended in december 2018 , completing the program . in october 2018 , our board of directors authorized the repurchase of up to $ 1.5 billion of our ordinary shares upon completion of the 2017 authorization . however , no material amounts were repurchased under this program during 2018. in june 2018 , we announced an increase in our quarterly share dividend from $ 0.45 to $ 0.53 per ordinary share . this reflects an 18 % increase that began with our september 2018 payment and an 83 % increase since the beginning of 2016. issuance and redemption of senior notes in february 2018 , we issued $ 1.15 billion principal amount of senior notes in three tranches through an indirect , wholly-owned subsidiary . the tranches consist of $ 300 million aggregate principal amount of 2.900 % senior notes due 2021 , $ 550 million aggregate principal amount of 3.750 % senior notes due 2028 and $ 300 million aggregate principal amount of 4.300 % senior notes due 2048. in march 2018 , we used the proceeds to fund the redemption of $ 750 million aggregate principal amount of 6.875 % senior notes due 2018 and $ 350 million aggregate principal amount of 2.875 % senior notes due 2019 , with the remainder used for general corporate purposes . tax cuts and job act in december 2017 , the u.s. enacted the tax cuts and jobs act ( the act ) which made widespread changes to the internal revenue code . the act , among other things , reduced the u.s. federal corporate tax rate from 35 % to 21 % , requires companies to pay a transition tax on earnings of certain foreign subsidiaries that were previously not subject to u.s. tax and creates new income taxes on certain foreign sourced earnings . the sec issued staff accounting bulletin no . 118 ( sab 118 ) which provided guidance on accounting for the tax effects of the act and allowed for adjustments to provisional amounts during a measurement period of up to one year . in accordance with sab 118 , we made reasonable estimates related to ( 1 ) the remeasurement of u.s. deferred tax balances for the reduction in the tax rate ( 2 ) the liability for the transition tax and ( 3 ) the taxes accrued relating to the change in permanent reinvestment assertion for unremitted earnings of certain foreign subsidiaries . story_separator_special_tag % . this decrease was partially offset by the transition tax cost , a change in permanent reinvestment assertion on the unremitted earnings of certain foreign subsidiaries and a non-cash charge related to the establishment of a valuation allowance on certain net deferred tax assets in brazil . in the aggregate these items increased the effective tax rate by 13.7 % . in addition , the reduction was also driven by earnings in non-u.s. jurisdictions , which in aggregate , have a lower effective tax rate . revenues from non-u.s. jurisdictions accounts for approximately 35 % of our total revenues , such that a material portion of our pretax income was earned and taxed outside the u.s. at rates ranging from 0 % to 38 % . when comparing the results of multiple reporting periods , among other factors , the mix of earnings between u.s. and foreign jurisdictions can cause variability in our overall effective tax rate . the 2016 effective tax rate was 16.2 % which is lower than the u.s. statutory rate of 35 % primarily due to the tax treatment of the hussmann gain . the gain , which is not subject to tax under the relevant local tax laws , decreased the effective tax rate by 4.8 % . in addition , the reduction was also driven by earnings in non-u.s. jurisdictions , which in aggregate , have a lower effective tax rate . revenues from non-u.s. jurisdictions accounts for approximately 35 % of our total revenues , such that a material portion of our pretax income was earned and taxed outside the u.s. at rates ranging from 0 % to 38 % . when comparing the results of multiple reporting periods , among other factors , the mix of earnings between u.s. and foreign jurisdictions can cause variability in our overall effective tax rate . discontinued operations the components of discontinued operations , net of tax for the years ended december 31 are as follows : replace_table_token_15_th discontinued operations are retained costs from previously sold businesses including postretirement benefits , product liability and legal costs . in addition , we include costs associated with ingersoll-rand company for the settlement and defense of asbestos-related claims , insurance settlements on asbestos-related matters and the revaluation of its liability for potential future claims . for the year ended december 31 , 2016 , ongoing costs were more than offset by asbestos-related settlements with various insurance carriers . a portion of the tax benefit ( expense ) in each period represents adjustments for certain tax matters associated with the 2013 spin-off of our commercial and residential security business , now an independent public company operating under the name of allegion . liquidity and capital resources we assess our liquidity in terms of our ability to generate cash to fund our operating , investing and financing activities . in doing so , we review and analyze our current cash on hand , the number of days our sales are outstanding , inventory turns , capital expenditure commitments and income tax payments . our cash requirements primarily consist of the following : funding of working capital funding of capital expenditures dividend payments debt service requirements our primary sources of liquidity include cash balances on hand , cash flows from operations , proceeds from debt offerings , commercial paper , and borrowing availability under our existing credit facilities . we earn a significant amount of our operating income in jurisdictions where it is deemed to be permanently reinvested . our most prominent jurisdiction of operation is the u.s. we expect existing cash and cash equivalents available to the u.s. operations , the cash generated by our u.s. operations , our committed credit lines as well as our expected ability to access the capital and debt markets will be sufficient to fund our u.s. operating and capital needs for at least the next twelve months and thereafter for the foreseeable future . in addition , we expect existing non-u.s. cash and cash equivalents and the cash generated by our non-u.s. operations will be sufficient to fund our non-u.s. operating and capital needs for at least the next twelve months and thereafter for the foreseeable future . as of december 31 , 2018 , we had $ 903.4 million of cash and cash equivalents on hand , of which $ 689.7 million was held by non-u.s. subsidiaries . cash and cash equivalents held by our non-u.s. subsidiaries are generally available for use in our u.s. operations 28 via intercompany loans , equity infusions or via distributions from direct or indirectly owned non-u.s. subsidiaries for which we do not assert permanent reinvestment . as a result of the tax cuts and jobs act in 2017 , additional repatriation opportunities to access cash and cash equivalents held by non-u.s. subsidiaries have been created . in general , repatriation of cash to the u.s. can be completed with no significant incremental u.s. tax . however , to the extent that we repatriate funds from non-u.s. subsidiaries for which we assert permanent reinvestment to fund our u.s. operations , we would be required to accrue and pay applicable non-u.s. taxes . as of december 31 , 2018 , we currently have no plans to repatriate funds from subsidiaries for which we assert permanent reinvestment . share repurchases are made from time to time in accordance with management 's capital allocation strategy , subject to market conditions and regulatory requirements . in february 2017 , our board of directors authorized the repurchase of up to $ 1.5 billion of our ordinary shares under a share repurchase program ( the 2017 authorization ) upon completion of the prior authorized share repurchase program . repurchases under the 2017 authorization began in may 2017 and ended in december 2018 , completing the program . in october 2018 , our board of directors authorized the repurchase of up to $ 1.5 billion of our ordinary shares upon completion of the 2017 authorization

prior to the reincorporation merger discussed below , tottenham was incorporated in the british virgin islands as a blank check company for the purpose of entering into a merger , share exchange , asset acquisition , stock purchase , recapitalization , reorganization or other similar business combination with one or more businesses or entities . the reverse recapitalization was effected in two steps : ( i ) tottenham was reincorporated to the state of delaware by merging with and into pubco ( the “ reincorporation merger ” ) ; ( ii ) promptly following the reincorporation merger , merger sub was merged with and into clene nanomedicine , resulting in clene nanomedicine being a wholly owned subsidiary of pubco ( the “ acquisition merger ” ) . on the closing date , pubco changed its name from chelsea worldwide inc. to clene inc. and listed its shares of common stock , par value $ 0.0001 per share ( “ common stock ” ) on nasdaq under the symbol “ clnn . ” as a result of the reverse recapitalization , clene nanomedicine became a wholly owned direct subsidiary of clene inc. for periods prior to the closing of the reverse recapitalization on december 30 , 2020 , the disclosure in management 's discussion and analysis of financial condition and results of operations has been updated to give effect to the reverse recapitalization . 78 on february 16 , 2021 , we filed a registration statement on form s-1 to register 4,541,481 shares of common stock underlying outstanding warrants that we had previously issued . the sec has not yet declared this registration statement to be effective . we will receive an aggregate gross proceed of $ 30.7 million if all of these warrants are exercised . in addition , the registration statement on form s-1 will register the sale by certain selling stockholders of 23,251,553 shares of our common stock . we will not receive any proceeds from the sales by the selling shareholders . in conjunction with the preparation of the registration statement on form s-1 , we incurred offering costs of $ 27,000 , which will be recognized as an expense within general and administrative expenses on consolidated statement of operations in the first quarter of 2021. we currently have no drugs approved by the us food and drug administration ( fda ) for commercial sale and have not generated any revenue from drug sales . we have never been profitable and have incurred operating losses in each year since inception . we began supplying low dose dietary supplements to 4life , llc , one of our shareholders , and had minimal direct sales of our rmetx znag immune boost dietary supplement product . our total operating losses were $ 20.2 million and $ 16.3 million for the years ended december 31 , 2020 and 2019 , respectively . substantially all of our operating losses resulted from research and development expenses and administrative expenses . as of december 31 , 2020 we had an accumulated deficit of $ 153.6 million . we expect to continue investing in product development , sales and marketing and customer support for our products and expect to incur additional losses in the future to fund our operations and conduct product research and development . we also recognize the need to raise additional capital to fully implement our business plan . the long-term continuation of our business plan is dependent upon the generation of sufficient revenues from our products to offset expenses and capital expenditures . in the event that we do not generate sufficient revenues and are unable to obtain funding , we will be forced to delay , reduce , or eliminate some or all of our research and development programs , product portfolio expansion , commercialization efforts or capital expenditures , which could adversely affect our business prospects , ability to meet long-term liquidity needs or we may be unable to continue operations . impact of the covid-19 coronavirus pandemic the covid-19 pandemic , which began in december 2019 and has spread worldwide , has caused many governments to implement measures to slow the spread of the outbreak . the outbreak and government measures taken in response have had a significant impact , both direct and indirect , on businesses and commerce , as worker shortages have occurred , supply chains have been disrupted , and facilities and production have been suspended . the future progression of the pandemic and its effects on our business and operations remain uncertain . the covid-19 pandemic may affect our ability to initiate and complete preclinical studies , delay the initiation of future clinical trials , disrupt regulatory activities , or have other adverse effects on our business and operations . in particular , we and our clinical research organizations ( “ cros ” ) may face disruptions that may affect our ability to initiate and complete preclinical studies , cause manufacturing disruptions , or create delays at clinical trial sites . the pandemic has already caused significant disruptions in the financial markets , and may continue to cause such disruptions , which could impact our ability to raise additional funds to support our operations . moreover , the pandemic has significantly impacted economies worldwide and could result in adverse effects on our business and operations . we are monitoring the potential impact of the covid-19 pandemic on our business and financial statements . while the covid-19 pandemic has led to various research restrictions and paused certain of our clinical trials , these impacts have been temporary and to date we have not experienced material business disruptions or incurred impairment losses in the carrying values of our assets as a result of the pandemic . we are not aware of any specific related event or circumstance that would require us to revise the estimates reflected in our financial statements . story_separator_special_tag drug candidates in later stages of clinical development generally have higher development costs than those in earlier stages of clinical development , primarily due to per patient clinical trial site fees for larger studies , the costs of opening and monitoring clinical sites , cro activity , and manufacturing expenses . we expect that our research and development expenses will increase in connection with our clinical development activities in the near term and in the future . clinical trial costs , including clinical trial supplies and fees for clinical trial services , are charged to research and development expense as incurred . our clinical trial accrual process seeks to account for expenses resulting from obligations under contracts with cros , consultants , and under clinical site agreements in connection with conducting clinical trials . the financial terms of these contracts are subject to negotiations , which vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided to us under such contracts . we reflect the appropriate trial expenses in the consolidated financial statements by matching the appropriate expenses with the period in which services and efforts are expended . in the event advance payments are made to a cro , the payments will be recorded as a prepaid asset , which will be expensed over the period of time the contracted services are performed . general and administrative expenses general and administrative expenses consist of employee salary and benefits , share-based compensation expenses , professional fees for legal , consulting and audit services and business development activities , facility , travel expenses , rental fees and other administrative expenses . we expect our general and administrative expenses to increase as we continue to grow and expand . other income ( expenses ) other income ( expenses ) consists of interest expenses , interest income , gains from the termination of a lease arrangement , changes in fair value of preferred stock warrant liability , changes in fair value of derivative liability , change in fair value of contingent earn-out , a research and development credit received from the australian government , foreign exchange gain , loss on disposal of assets , and loss on extinguishment of convertible notes . 83 comparison of the years ended december 31 , 2020 and 2019 the following table summarizes our results of operations for the years ended december 31 , 2020 and 2019 : replace_table_token_2_th revenue we generated revenue of $ 0.2 million for the year ended december 31 , 2020 while no revenue was generated for 2019 . $ 0.2 million of our revenue for the year ended december 31 , 2020 was product revenue from supply agreements with a related party for khc46 and a low dose zinc-silver solution , two dietary supplements that we began supplying during this period . we also generated minimal product revenue from sales of rmetx znag immune boost during this period . in addition , $ 30 thousand of our revenue during the same period was royalty revenue from a license agreement with the same related party . operating expenses cost of sales we incurred cost of sales of $ 0.1 million for the year ended december 31 , 2020 relating to production and distribution costs for the sales of our khc46 and low dose zinc-silver solution dietary supplement products through supply agreements we have entered into with a related party while no cost of sales was incurred for 2019 . 84 research and development expenses research and development expenses were $ 15.2 million for the year ended december 31 , 2020 compared to $ 9.6 million for 2019. during these periods , substantially all of our research and development expenses were related to the development and clinical trials of cnm-au8 . this increase of $ 5.6 million , or 59.0 % , was primarily due to the progression of our drug candidates through the clinical development process , including increased enrollment into the repair-pd and the repair-ms studies , and calendar payments due for our participation in the healey-als platform trial . these efforts resulted in greater associated costs and manufacturing expenses in support of these trials . general and administrative expenses general and administrative expenses were $ 5.2 million for the year ended december 31 , 2020 compared to $ 6.8 million for 2019. this decrease of $ 1.6 million , or 23.9 % was primarily due to decreased expenses relating to efforts to list our shares on an international public exchange during 2019 , which were subsequently abandoned . for the year ended december 31 , 2020 , we had a small increase in employee salary and benefits , shares based-compensation expenses due to the growth of our business and professional expenses related to fund raising activities . other income ( expenses ) other income ( expenses ) , net for the years ended december 31 , 2020 and 2019 included the following : ( i ) recognized interest expense of $ 1.0 million and $ 0.1 million , respectively , due to an increase in the fair value of the company 's notes payable . as of december 31 , 2020 , the fair value of the company 's notes payable is determined based on the closing price of clnn shares listed on the nasdaq . ( ii ) recognized expense of $ 14.6 million and $ 0.4 million relating to the changes in fair value of preferred stock warrant liability , respectively . the increase of $ 14.2 million in association with the changes in fair value of preferred stock warrant liability was primarily a result of the increase in the value of outstanding warrants as the estimated value of our company and the likelihood of a liquidation event increased due to consideration of the reverse recapitalization . upon the consummation of the reverse recapitalization , we determined that the warrants qualify for classification as permanent equity

debt obligations in february 2019 , we entered into a loan agreement with the department of housing and community development , a principal department of the state of maryland , pursuant to which maryland agreed to provide a $ 0.5 million term loan . amounts outstanding under the loan bear simple interest at an annual rate of 8.00 % . repayment of the full balance outstanding is due on february 22 , 2034. this loan establishes “ phantom shares , ” based on 119,906 shares of our common stock ( based on 863,110 series c preferred shares prior to the reverse recapitalization ) , determined at issuance . the loan agreement states the repayment amount is to be the greater of the balance of principal and accrued interest or the phantom shares value . we determined that the note should be accounted for at fair value . we record the fair value of the debt at the end of each reporting period . in order to value the note , we consider the amount of the simple interest expense that would be due and consider the value of phantom shares . upon the closing of the reverse recapitalization and as of december 31 , 2020 , the fair value of the maryland note payable is now determined based on the closing price of clnn shares listed on the nasdaq . expenses of $ 0.5 million and $ 34 thousand were recognized during the years ended december 31 , 2020 and 2019 , respectively . the fair value of $ 1.1 million and $ 0.5 million of principal and accrued interest is included in long-term notes payable as of december 31 , 2020 and december 31 , 2019 , respectively . in april 2019 , the company entered into a loan agreement ( the “ 2019 cecil loan ” ) with cecil county , maryland ( “ cecil ” ) . pursuant to the 2019 cecil loan , cecil agreed to provide a $ 0.1 million term loan . amounts outstanding under the 2019 cecil loan bear simple interest at an annual rate of 8.00 % .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 obligations in february 2019 , we entered into a loan agreement with the department of housing and community development , a principal department of the state of maryland , pursuant to which maryland agreed to provide a $ 0.5 million term loan . amounts outstanding under the loan bear simple interest at an annual rate of 8.00 % . repayment of the full balance outstanding is due on february 22 , 2034. this loan establishes “ phantom shares , ” based on 119,906 shares of our common stock ( based on 863,110 series c preferred shares prior to the reverse recapitalization ) , determined at issuance . the loan agreement states the repayment amount is to be the greater of the balance of principal and accrued interest or the phantom shares value . we determined that the note should be accounted for at fair value . we record the fair value of the debt at the end of each reporting period . in order to value the note , we consider the amount of the simple interest expense that would be due and consider the value of phantom shares . upon the closing of the reverse recapitalization and as of december 31 , 2020 , the fair value of the maryland note payable is now determined based on the closing price of clnn shares listed on the nasdaq . expenses of $ 0.5 million and $ 34 thousand were recognized during the years ended december 31 , 2020 and 2019 , respectively . the fair value of $ 1.1 million and $ 0.5 million of principal and accrued interest is included in long-term notes payable as of december 31 , 2020 and december 31 , 2019 , respectively . in april 2019 , the company entered into a loan agreement ( the “ 2019 cecil loan ” ) with cecil county , maryland ( “ cecil ” ) . pursuant to the 2019 cecil loan , cecil agreed to provide a $ 0.1 million term loan . amounts outstanding under the 2019 cecil loan bear simple interest at an annual rate of 8.00 % . ``` Suspicious Activity Report : prior to the reincorporation merger discussed below , tottenham was incorporated in the british virgin islands as a blank check company for the purpose of entering into a merger , share exchange , asset acquisition , stock purchase , recapitalization , reorganization or other similar business combination with one or more businesses or entities . the reverse recapitalization was effected in two steps : ( i ) tottenham was reincorporated to the state of delaware by merging with and into pubco ( the “ reincorporation merger ” ) ; ( ii ) promptly following the reincorporation merger , merger sub was merged with and into clene nanomedicine , resulting in clene nanomedicine being a wholly owned subsidiary of pubco ( the “ acquisition merger ” ) . on the closing date , pubco changed its name from chelsea worldwide inc. to clene inc. and listed its shares of common stock , par value $ 0.0001 per share ( “ common stock ” ) on nasdaq under the symbol “ clnn . ” as a result of the reverse recapitalization , clene nanomedicine became a wholly owned direct subsidiary of clene inc. for periods prior to the closing of the reverse recapitalization on december 30 , 2020 , the disclosure in management 's discussion and analysis of financial condition and results of operations has been updated to give effect to the reverse recapitalization . 78 on february 16 , 2021 , we filed a registration statement on form s-1 to register 4,541,481 shares of common stock underlying outstanding warrants that we had previously issued . the sec has not yet declared this registration statement to be effective . we will receive an aggregate gross proceed of $ 30.7 million if all of these warrants are exercised . in addition , the registration statement on form s-1 will register the sale by certain selling stockholders of 23,251,553 shares of our common stock . we will not receive any proceeds from the sales by the selling shareholders . in conjunction with the preparation of the registration statement on form s-1 , we incurred offering costs of $ 27,000 , which will be recognized as an expense within general and administrative expenses on consolidated statement of operations in the first quarter of 2021. we currently have no drugs approved by the us food and drug administration ( fda ) for commercial sale and have not generated any revenue from drug sales . we have never been profitable and have incurred operating losses in each year since inception . we began supplying low dose dietary supplements to 4life , llc , one of our shareholders , and had minimal direct sales of our rmetx znag immune boost dietary supplement product . our total operating losses were $ 20.2 million and $ 16.3 million for the years ended december 31 , 2020 and 2019 , respectively . substantially all of our operating losses resulted from research and development expenses and administrative expenses . as of december 31 , 2020 we had an accumulated deficit of $ 153.6 million . we expect to continue investing in product development , sales and marketing and customer support for our products and expect to incur additional losses in the future to fund our operations and conduct product research and development . we also recognize the need to raise additional capital to fully implement our business plan . the long-term continuation of our business plan is dependent upon the generation of sufficient revenues from our products to offset expenses and capital expenditures . in the event that we do not generate sufficient revenues and are unable to obtain funding , we will be forced to delay , reduce , or eliminate some or all of our research and development programs , product portfolio expansion , commercialization efforts or capital expenditures , which could adversely affect our business prospects , ability to meet long-term liquidity needs or we may be unable to continue operations . impact of the covid-19 coronavirus pandemic the covid-19 pandemic , which began in december 2019 and has spread worldwide , has caused many governments to implement measures to slow the spread of the outbreak . the outbreak and government measures taken in response have had a significant impact , both direct and indirect , on businesses and commerce , as worker shortages have occurred , supply chains have been disrupted , and facilities and production have been suspended . the future progression of the pandemic and its effects on our business and operations remain uncertain . the covid-19 pandemic may affect our ability to initiate and complete preclinical studies , delay the initiation of future clinical trials , disrupt regulatory activities , or have other adverse effects on our business and operations . in particular , we and our clinical research organizations ( “ cros ” ) may face disruptions that may affect our ability to initiate and complete preclinical studies , cause manufacturing disruptions , or create delays at clinical trial sites . the pandemic has already caused significant disruptions in the financial markets , and may continue to cause such disruptions , which could impact our ability to raise additional funds to support our operations . moreover , the pandemic has significantly impacted economies worldwide and could result in adverse effects on our business and operations . we are monitoring the potential impact of the covid-19 pandemic on our business and financial statements . while the covid-19 pandemic has led to various research restrictions and paused certain of our clinical trials , these impacts have been temporary and to date we have not experienced material business disruptions or incurred impairment losses in the carrying values of our assets as a result of the pandemic . we are not aware of any specific related event or circumstance that would require us to revise the estimates reflected in our financial statements . story_separator_special_tag drug candidates in later stages of clinical development generally have higher development costs than those in earlier stages of clinical development , primarily due to per patient clinical trial site fees for larger studies , the costs of opening and monitoring clinical sites , cro activity , and manufacturing expenses . we expect that our research and development expenses will increase in connection with our clinical development activities in the near term and in the future . clinical trial costs , including clinical trial supplies and fees for clinical trial services , are charged to research and development expense as incurred . our clinical trial accrual process seeks to account for expenses resulting from obligations under contracts with cros , consultants , and under clinical site agreements in connection with conducting clinical trials . the financial terms of these contracts are subject to negotiations , which vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided to us under such contracts . we reflect the appropriate trial expenses in the consolidated financial statements by matching the appropriate expenses with the period in which services and efforts are expended . in the event advance payments are made to a cro , the payments will be recorded as a prepaid asset , which will be expensed over the period of time the contracted services are performed . general and administrative expenses general and administrative expenses consist of employee salary and benefits , share-based compensation expenses , professional fees for legal , consulting and audit services and business development activities , facility , travel expenses , rental fees and other administrative expenses . we expect our general and administrative expenses to increase as we continue to grow and expand . other income ( expenses ) other income ( expenses ) consists of interest expenses , interest income , gains from the termination of a lease arrangement , changes in fair value of preferred stock warrant liability , changes in fair value of derivative liability , change in fair value of contingent earn-out , a research and development credit received from the australian government , foreign exchange gain , loss on disposal of assets , and loss on extinguishment of convertible notes . 83 comparison of the years ended december 31 , 2020 and 2019 the following table summarizes our results of operations for the years ended december 31 , 2020 and 2019 : replace_table_token_2_th revenue we generated revenue of $ 0.2 million for the year ended december 31 , 2020 while no revenue was generated for 2019 . $ 0.2 million of our revenue for the year ended december 31 , 2020 was product revenue from supply agreements with a related party for khc46 and a low dose zinc-silver solution , two dietary supplements that we began supplying during this period . we also generated minimal product revenue from sales of rmetx znag immune boost during this period . in addition , $ 30 thousand of our revenue during the same period was royalty revenue from a license agreement with the same related party . operating expenses cost of sales we incurred cost of sales of $ 0.1 million for the year ended december 31 , 2020 relating to production and distribution costs for the sales of our khc46 and low dose zinc-silver solution dietary supplement products through supply agreements we have entered into with a related party while no cost of sales was incurred for 2019 . 84 research and development expenses research and development expenses were $ 15.2 million for the year ended december 31 , 2020 compared to $ 9.6 million for 2019. during these periods , substantially all of our research and development expenses were related to the development and clinical trials of cnm-au8 . this increase of $ 5.6 million , or 59.0 % , was primarily due to the progression of our drug candidates through the clinical development process , including increased enrollment into the repair-pd and the repair-ms studies , and calendar payments due for our participation in the healey-als platform trial . these efforts resulted in greater associated costs and manufacturing expenses in support of these trials . general and administrative expenses general and administrative expenses were $ 5.2 million for the year ended december 31 , 2020 compared to $ 6.8 million for 2019. this decrease of $ 1.6 million , or 23.9 % was primarily due to decreased expenses relating to efforts to list our shares on an international public exchange during 2019 , which were subsequently abandoned . for the year ended december 31 , 2020 , we had a small increase in employee salary and benefits , shares based-compensation expenses due to the growth of our business and professional expenses related to fund raising activities . other income ( expenses ) other income ( expenses ) , net for the years ended december 31 , 2020 and 2019 included the following : ( i ) recognized interest expense of $ 1.0 million and $ 0.1 million , respectively , due to an increase in the fair value of the company 's notes payable . as of december 31 , 2020 , the fair value of the company 's notes payable is determined based on the closing price of clnn shares listed on the nasdaq . ( ii ) recognized expense of $ 14.6 million and $ 0.4 million relating to the changes in fair value of preferred stock warrant liability , respectively . the increase of $ 14.2 million in association with the changes in fair value of preferred stock warrant liability was primarily a result of the increase in the value of outstanding warrants as the estimated value of our company and the likelihood of a liquidation event increased due to consideration of the reverse recapitalization . upon the consummation of the reverse recapitalization , we determined that the warrants qualify for classification as permanent equity

fiscal year ended march 31 , 2017 decreased to $ 8.7 million as compared to $ 20.1 million and $ 26.1 million for the fiscal years ended march 31 , 2016 and 2015 , respectively . the decrease from $ 20.1 million to $ 8.7 million was a result of an increase in the provision for credit losses due to higher charge-offs and past-due accounts along with a reduction in the gross portfolio yield . the company 's consolidated net income for the fiscal years ended march 31 , 2017 , 2016 , and 2015 were $ 5.4 million , $ 12.4 million and $ 16.9 million , respectively . the company believes that an extremely competitive market has been the primary driver for weaker results during the past two fiscal years , eventually leading to a net loss of $ ( 1.1 ) million during the final quarter in the 2017 fiscal year . the company 's operating results have deteriorated as a result of several factors , including , but not limited to , lower auction proceeds , the acquisition of contracts that contained some degree of fraudulent information that at the time of contract acquisition was not identified , and an increase in the number of contracts and direct loans under which customers decided to discontinue payments to us after they were approved by other lenders for new vehicle financing . in addition , aggressive competition has forced the company to purchase lower credit quality contracts . historically , the company was able to expand its automobile finance business in the non-prime credit market by offering to purchase contracts on terms that are competitive with those of other companies . however , it has become increasingly difficult for the company to match or exceed pricing of its competitors , which has resulted in declining contract acquisition rates during the 2016 and 2017 fiscal years . the company expects this trend to continue in the foreseeable future . the company continues to experience decreasing yields associated with contract acquisition , which is directly correlated to the level of competition . if competing companies continue to reduce their contract acquisition yields as part of their operating strategy , the market , and the company , will continue to experience reduced yields . while it is difficult to predict the level of competition long-term , the company believes that the current highly competitive environment will prevail for the foreseeable future , which will continue to put pressure on its margins . the weighted average apr of the portfolio for the fiscal years ended march 31 , 2017 , 2016 , and 2015 were 22.44 % , 22.73 % , and 22.93 % , respectively . the average dealer discounts as a percent of gross finance receivables associated with new volume for the fiscal years ended march 31 , 2017 , 2016 , and 2015 were 7.08 % , 7.51 % , and 8.08 % , respectively . furthermore , the company expects the trend of declining auction proceeds to continue for the foreseeable future . decreased auction proceeds resulting from sales of used automobiles at depressed prices can put downward pressure on its margins . 24 replace_table_token_9_th ( 1 ) average finance receivables , net of unearned interest , represents the average of gross finance receivables , less unearned interest throughout the period . ( 2 ) average indebtedness represents the average outstanding borrowings under the line . ( 3 ) gross portfolio yield represents interest and fee income on finance receivables as a percentage of average finance receivables , net of unearned interest . net portfolio yield represents ( a ) interest and fee income on finance receivables minus ( b ) interest expense minus ( c ) the provision for credit losses , as a percentage of average finance receivables , net of unearned interest . ( 4 ) pre-tax yield represents net portfolio yield minus administrative expenses ( marketing , salaries , employee benefits , depreciation , and administrative ) , as a percentage of average finance receivables , net of unearned interest . ( 5 ) write-off to liquidation percentage is defined as net charge-offs divided by liquidation . liquidation is defined as beginning receivable balance plus current period purchases and originations minus ending receivable balance . ( 6 ) net charge-off percentage represents net charge-offs divided by average finance receivables , net of unearned interest , outstanding during the period . 25 critical accounting policy the company 's critical accounting policy relates to the allowance for credit losses . it is based on management 's opinion of an amount that is adequate to absorb losses incurred in the existing portfolio . the allowance for credit losses is established through a provision for credit losses based on management 's evaluation of the risk inherent in the loan portfolio which includes the competitive environment that existed when the loan was acquired , the composition of the portfolio , and current economic conditions . such evaluation considers , among other matters , the estimated net realizable value or the fair value of the underlying collateral , economic conditions , historical loan loss experience , management 's estimate of probable credit losses and other factors that warrant recognition in providing for an adequate credit loss allowance . because of the nature of the customers under the company 's contracts and its direct loan program , the company considers the establishment of adequate reserves for credit losses to be imperative . the company segregates its contracts into static pools for purposes of establishing reserves for losses . all contracts purchased by a branch during a fiscal quarter comprise a static pool . the company pools contracts according to branch location because the branches purchase contracts in different geographic markets . story_separator_special_tag marketing , salaries and employee benefits , depreciation , and administrative expenses marketing , salaries and employee benefits , depreciation , and administrative expenses increased to $ 35.3 million for the fiscal year ended march 31 , 2016 compared to $ 34.0 million for the fiscal year ended march 31 , 2015 , primarily because of an increase in cost associated with maintaining the finance receivables portfolio . the company opened three new branch locations during the fiscal year ended march 31 , 2016 , and consolidated two branch locations into branches previously established within their market . however , the company increased the average headcount to 338 for the fiscal year ended march 31 , 2016 from 330 for the fiscal year ended march 31 , 2015. marketing , salaries and employee benefits , depreciation , and administrative expenses as a percentage of average finance receivables , net of unearned interest , decreased to 10.54 % for the fiscal year ended march 31 , 2016 from 10.96 % for the fiscal year ended march 31 , 2015. absent the professional expenses associated with the abandoned sale of the company the percentage would have been 10.85 % for the fiscal year ended march 31 , 2015 . 29 interest expense interest expense increased to $ 9.0 million for the fiscal year ended march 31 , 2016 as compared to $ 6.0 million for the fiscal year ended march 31 , 2015. the average outstanding debt as of march 31 , 2016 and march 31 , 2015 was $ 208.2 million and $ 133.4 million , respectively . the total average debt outstanding increased due to the tender offer executed on march 19 , 2015. the following table summarizes the company 's average cost of borrowed funds for the fiscal years ended march 31 : replace_table_token_13_th the company 's average cost of borrowed funds decreased mostly due to the fixed notional amount interest rate swap agreements representing a lower percentage of average debt . during fiscal 2016 libor rates have increased , which has caused the credit spread to decrease and the variable interest expense to increase . the variable interest rate also includes a decrease in the unused line fees offset with an increase in amortized loan origination fees . for a further discussion regarding the company 's line of credit , see “— liquidity and capital resources” below and “note 5—line of credit” to our audited consolidated financial statements included elsewhere in this report . the weighted average notional amount of interest rate swaps was $ 50.0 million at a weighted average fixed rate of 0.94 % for each of the fiscal years ended march 31 , 2016 and 2015. for a further discussion regarding the effect of our interest rate swap agreements , see “note 6—interest rate swap agreements ” to our audited consolidated financial statements included elsewhere in this report . analysis of credit losses as of march 31 , 2016 , the company had approximately 1,400 active static pools . the average pool upon inception consisted of 61 contracts with aggregate finance receivables , net of unearned interest , of approximately $ 683,000. the following table sets forth a reconciliation of the changes in the allowance for credit losses on contracts for the fiscal years ended march 31 : replace_table_token_14_th 30 the following table sets forth a reconciliation of the changes in the allowance for credit losses on direct loans for the fiscal years ended march 31 : replace_table_token_15_th the provision for credit losses increased to $ 26.3 million for the fiscal year ended march 31 , 2016 from $ 20.4 million for the fiscal year ended march 31 , 2015 , largely due to the fact that net charge-offs increased to 7.56 % for the fiscal year ended march 31 , 2016 from 7.04 % for the fiscal year ended march 31 , 2015 , as well as the portfolio growing . during the fourth quarter of the fiscal year ended march 31 , 2016 , the company refined its allowance for credit loss model to incorporate recent trends that include the acquisition of longer term contracts and increased delinquencies . the company feels that these improvements to the current model better reflect the current trends of incurred losses within the portfolio and better align the allowance for credit losses with the portfolio 's performance indicators . the company 's losses as a percentage of liquidation increased to 9.10 % for the fiscal year ended march 31 , 2016 as compared to 8.13 % for the fiscal year ended march 31 , 2015. this increase was primarily the result of increased competition in all markets in which the company presently operates . increased competition has led to a higher percentage of loans acquired that are categorized in the lower tiers of the company 's guidelines . the company also experienced a decrease in auction prices from fiscal year 2015 to fiscal year 2016. decreased auction proceeds from repossessed vehicles increased the amount of write-offs which , in turn , increased the write-off to liquidation percentage . during the fiscal years ended march 31 , 2016 and 2015 , auction proceeds from the sale of repossessed vehicles averaged approximately 42 % and 46 % , respectively , of the related principal balance . recoveries as a percentage of charge-offs were approximately 10.59 % and 13.82 % for the fiscal years ended march 31 , 2016 and 2015 , respectively . historically , recoveries as a percentage of charge-offs have fluctuated from period to period , and the company does not attribute this decrease to any particular change in operational strategy or economic events however , we have generally experienced declining auction proceeds for approximately the past five years . the delinquency percentage for contracts more than thirty days past due , excluding chapter 13 bankruptcy accounts , as of march 31 , 2016 increased to 5.57 % from 4.17 % as of march 31 , 2015.

liquidity and capital resources the company 's cash flows are summarized as follows : replace_table_token_16_th the company made certain reclassifications to the 2016 and 2015 statements of cash flows . the amortization of deferred revenues decreased cash flows from operating activities by $ 1.7 million and $ 1.3 million for 2016 and 2015 respectively , and correspondingly increased cash flows from investing activities . net income and shareholders ' equity was not changed . the company 's primary use of working capital for the fiscal year ended march 31 , 2017 was funding the purchase of contracts , which are financed substantially through cash from principal payments received , cash from operations and our line of credit ( the “line” ) . the line is secured by all of the assets of the company and has a maturity date of january 30 , 2018. the company may borrow up to $ 225.0 million under the line . prior to december 30 , 2016 , borrowings under the line were under various libor pricing options plus 300 basis points with a 1 % floor on libor . effective december 30 , 2016 the company entered into an amendment to adjust its availability calculation which temporarily increased pricing of the line to 350 basis points above 30 day libor with a 1 % floor on libor through june 30 , 2017. as of march 31 , 2017 , the amount outstanding under the line was $ 213.0 million . the exact amount that the company may borrow under the line at any given time is determined in accordance with the second amended and restated loan and security agreement , as subsequently amended . the company will continue to depend on the availability of the line , together with cash from operations , to finance future operations . the availability of funds under the line generally depends on availability calculations as defined in the corresponding credit agreement . in addition , our credit facility requires us to comply with certain financial ratios and covenants and to satisfy specified financial tests , including maintenance of asset quality and portfolio performance tests .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources the company 's cash flows are summarized as follows : replace_table_token_16_th the company made certain reclassifications to the 2016 and 2015 statements of cash flows . the amortization of deferred revenues decreased cash flows from operating activities by $ 1.7 million and $ 1.3 million for 2016 and 2015 respectively , and correspondingly increased cash flows from investing activities . net income and shareholders ' equity was not changed . the company 's primary use of working capital for the fiscal year ended march 31 , 2017 was funding the purchase of contracts , which are financed substantially through cash from principal payments received , cash from operations and our line of credit ( the “line” ) . the line is secured by all of the assets of the company and has a maturity date of january 30 , 2018. the company may borrow up to $ 225.0 million under the line . prior to december 30 , 2016 , borrowings under the line were under various libor pricing options plus 300 basis points with a 1 % floor on libor . effective december 30 , 2016 the company entered into an amendment to adjust its availability calculation which temporarily increased pricing of the line to 350 basis points above 30 day libor with a 1 % floor on libor through june 30 , 2017. as of march 31 , 2017 , the amount outstanding under the line was $ 213.0 million . the exact amount that the company may borrow under the line at any given time is determined in accordance with the second amended and restated loan and security agreement , as subsequently amended . the company will continue to depend on the availability of the line , together with cash from operations , to finance future operations . the availability of funds under the line generally depends on availability calculations as defined in the corresponding credit agreement . in addition , our credit facility requires us to comply with certain financial ratios and covenants and to satisfy specified financial tests , including maintenance of asset quality and portfolio performance tests . ``` Suspicious Activity Report : fiscal year ended march 31 , 2017 decreased to $ 8.7 million as compared to $ 20.1 million and $ 26.1 million for the fiscal years ended march 31 , 2016 and 2015 , respectively . the decrease from $ 20.1 million to $ 8.7 million was a result of an increase in the provision for credit losses due to higher charge-offs and past-due accounts along with a reduction in the gross portfolio yield . the company 's consolidated net income for the fiscal years ended march 31 , 2017 , 2016 , and 2015 were $ 5.4 million , $ 12.4 million and $ 16.9 million , respectively . the company believes that an extremely competitive market has been the primary driver for weaker results during the past two fiscal years , eventually leading to a net loss of $ ( 1.1 ) million during the final quarter in the 2017 fiscal year . the company 's operating results have deteriorated as a result of several factors , including , but not limited to , lower auction proceeds , the acquisition of contracts that contained some degree of fraudulent information that at the time of contract acquisition was not identified , and an increase in the number of contracts and direct loans under which customers decided to discontinue payments to us after they were approved by other lenders for new vehicle financing . in addition , aggressive competition has forced the company to purchase lower credit quality contracts . historically , the company was able to expand its automobile finance business in the non-prime credit market by offering to purchase contracts on terms that are competitive with those of other companies . however , it has become increasingly difficult for the company to match or exceed pricing of its competitors , which has resulted in declining contract acquisition rates during the 2016 and 2017 fiscal years . the company expects this trend to continue in the foreseeable future . the company continues to experience decreasing yields associated with contract acquisition , which is directly correlated to the level of competition . if competing companies continue to reduce their contract acquisition yields as part of their operating strategy , the market , and the company , will continue to experience reduced yields . while it is difficult to predict the level of competition long-term , the company believes that the current highly competitive environment will prevail for the foreseeable future , which will continue to put pressure on its margins . the weighted average apr of the portfolio for the fiscal years ended march 31 , 2017 , 2016 , and 2015 were 22.44 % , 22.73 % , and 22.93 % , respectively . the average dealer discounts as a percent of gross finance receivables associated with new volume for the fiscal years ended march 31 , 2017 , 2016 , and 2015 were 7.08 % , 7.51 % , and 8.08 % , respectively . furthermore , the company expects the trend of declining auction proceeds to continue for the foreseeable future . decreased auction proceeds resulting from sales of used automobiles at depressed prices can put downward pressure on its margins . 24 replace_table_token_9_th ( 1 ) average finance receivables , net of unearned interest , represents the average of gross finance receivables , less unearned interest throughout the period . ( 2 ) average indebtedness represents the average outstanding borrowings under the line . ( 3 ) gross portfolio yield represents interest and fee income on finance receivables as a percentage of average finance receivables , net of unearned interest . net portfolio yield represents ( a ) interest and fee income on finance receivables minus ( b ) interest expense minus ( c ) the provision for credit losses , as a percentage of average finance receivables , net of unearned interest . ( 4 ) pre-tax yield represents net portfolio yield minus administrative expenses ( marketing , salaries , employee benefits , depreciation , and administrative ) , as a percentage of average finance receivables , net of unearned interest . ( 5 ) write-off to liquidation percentage is defined as net charge-offs divided by liquidation . liquidation is defined as beginning receivable balance plus current period purchases and originations minus ending receivable balance . ( 6 ) net charge-off percentage represents net charge-offs divided by average finance receivables , net of unearned interest , outstanding during the period . 25 critical accounting policy the company 's critical accounting policy relates to the allowance for credit losses . it is based on management 's opinion of an amount that is adequate to absorb losses incurred in the existing portfolio . the allowance for credit losses is established through a provision for credit losses based on management 's evaluation of the risk inherent in the loan portfolio which includes the competitive environment that existed when the loan was acquired , the composition of the portfolio , and current economic conditions . such evaluation considers , among other matters , the estimated net realizable value or the fair value of the underlying collateral , economic conditions , historical loan loss experience , management 's estimate of probable credit losses and other factors that warrant recognition in providing for an adequate credit loss allowance . because of the nature of the customers under the company 's contracts and its direct loan program , the company considers the establishment of adequate reserves for credit losses to be imperative . the company segregates its contracts into static pools for purposes of establishing reserves for losses . all contracts purchased by a branch during a fiscal quarter comprise a static pool . the company pools contracts according to branch location because the branches purchase contracts in different geographic markets . story_separator_special_tag marketing , salaries and employee benefits , depreciation , and administrative expenses marketing , salaries and employee benefits , depreciation , and administrative expenses increased to $ 35.3 million for the fiscal year ended march 31 , 2016 compared to $ 34.0 million for the fiscal year ended march 31 , 2015 , primarily because of an increase in cost associated with maintaining the finance receivables portfolio . the company opened three new branch locations during the fiscal year ended march 31 , 2016 , and consolidated two branch locations into branches previously established within their market . however , the company increased the average headcount to 338 for the fiscal year ended march 31 , 2016 from 330 for the fiscal year ended march 31 , 2015. marketing , salaries and employee benefits , depreciation , and administrative expenses as a percentage of average finance receivables , net of unearned interest , decreased to 10.54 % for the fiscal year ended march 31 , 2016 from 10.96 % for the fiscal year ended march 31 , 2015. absent the professional expenses associated with the abandoned sale of the company the percentage would have been 10.85 % for the fiscal year ended march 31 , 2015 . 29 interest expense interest expense increased to $ 9.0 million for the fiscal year ended march 31 , 2016 as compared to $ 6.0 million for the fiscal year ended march 31 , 2015. the average outstanding debt as of march 31 , 2016 and march 31 , 2015 was $ 208.2 million and $ 133.4 million , respectively . the total average debt outstanding increased due to the tender offer executed on march 19 , 2015. the following table summarizes the company 's average cost of borrowed funds for the fiscal years ended march 31 : replace_table_token_13_th the company 's average cost of borrowed funds decreased mostly due to the fixed notional amount interest rate swap agreements representing a lower percentage of average debt . during fiscal 2016 libor rates have increased , which has caused the credit spread to decrease and the variable interest expense to increase . the variable interest rate also includes a decrease in the unused line fees offset with an increase in amortized loan origination fees . for a further discussion regarding the company 's line of credit , see “— liquidity and capital resources” below and “note 5—line of credit” to our audited consolidated financial statements included elsewhere in this report . the weighted average notional amount of interest rate swaps was $ 50.0 million at a weighted average fixed rate of 0.94 % for each of the fiscal years ended march 31 , 2016 and 2015. for a further discussion regarding the effect of our interest rate swap agreements , see “note 6—interest rate swap agreements ” to our audited consolidated financial statements included elsewhere in this report . analysis of credit losses as of march 31 , 2016 , the company had approximately 1,400 active static pools . the average pool upon inception consisted of 61 contracts with aggregate finance receivables , net of unearned interest , of approximately $ 683,000. the following table sets forth a reconciliation of the changes in the allowance for credit losses on contracts for the fiscal years ended march 31 : replace_table_token_14_th 30 the following table sets forth a reconciliation of the changes in the allowance for credit losses on direct loans for the fiscal years ended march 31 : replace_table_token_15_th the provision for credit losses increased to $ 26.3 million for the fiscal year ended march 31 , 2016 from $ 20.4 million for the fiscal year ended march 31 , 2015 , largely due to the fact that net charge-offs increased to 7.56 % for the fiscal year ended march 31 , 2016 from 7.04 % for the fiscal year ended march 31 , 2015 , as well as the portfolio growing . during the fourth quarter of the fiscal year ended march 31 , 2016 , the company refined its allowance for credit loss model to incorporate recent trends that include the acquisition of longer term contracts and increased delinquencies . the company feels that these improvements to the current model better reflect the current trends of incurred losses within the portfolio and better align the allowance for credit losses with the portfolio 's performance indicators . the company 's losses as a percentage of liquidation increased to 9.10 % for the fiscal year ended march 31 , 2016 as compared to 8.13 % for the fiscal year ended march 31 , 2015. this increase was primarily the result of increased competition in all markets in which the company presently operates . increased competition has led to a higher percentage of loans acquired that are categorized in the lower tiers of the company 's guidelines . the company also experienced a decrease in auction prices from fiscal year 2015 to fiscal year 2016. decreased auction proceeds from repossessed vehicles increased the amount of write-offs which , in turn , increased the write-off to liquidation percentage . during the fiscal years ended march 31 , 2016 and 2015 , auction proceeds from the sale of repossessed vehicles averaged approximately 42 % and 46 % , respectively , of the related principal balance . recoveries as a percentage of charge-offs were approximately 10.59 % and 13.82 % for the fiscal years ended march 31 , 2016 and 2015 , respectively . historically , recoveries as a percentage of charge-offs have fluctuated from period to period , and the company does not attribute this decrease to any particular change in operational strategy or economic events however , we have generally experienced declining auction proceeds for approximately the past five years . the delinquency percentage for contracts more than thirty days past due , excluding chapter 13 bankruptcy accounts , as of march 31 , 2016 increased to 5.57 % from 4.17 % as of march 31 , 2015.

we are seeking one or more strategic partners or other sources of capital to complete the development of neutrolin in the u.s. financial operations overview revenue we have not generated substantial revenue since our inception . as of december 31 , 2014 , we have funded our operations primarily through debt and equity financings and the ipo , our receipt of approximately $ 490,000 from federal grants under the qualifying therapeutic discovery project program , approximately $ 775,000 from the sale of our unused net operating losses through the state of new jersey 's economic development authority technology business tax certificate transfer program and approximately $ 35,000 from the state of new york 's research and development tax credit program . research and development expense research and development , or r & d , expense consists of : ( i ) internal costs associated with our development activities ; ( ii ) payments we make to third party contract research organizations , contract manufacturers , investigative sites , and consultants ; ( iii ) technology and intellectual property license costs ; ( iv ) manufacturing development costs ; ( v ) personnel related expenses , including salaries , stock-based compensation , benefits , travel and related costs for the personnel involved in drug development ; ( vi ) activities relating to regulatory filings and the advancement of our product candidates through preclinical studies and clinical trials ; and ( vii ) facilities and other allocated expenses , which include direct and allocated expenses for rent , facility maintenance , as well as laboratory and other supplies . all r & d is expensed as incurred . conducting a significant amount of development is central to our business model . product candidates in later-stage clinical development generally have higher development costs than those in earlier stages of development , primarily due to the significantly increased size and duration of the clinical trials . we plan to increase our r & d expenses for the foreseeable future in order to complete development of neutrolin in the u.s. 33 the following table summarizes the percentages of our r & d payments related to our two most advanced product candidates and other projects . the percentages summarized in the following table reflect payments directly attributable to each development candidate , which are tracked on a project basis . a portion of our internal costs , including indirect costs relating to our product candidates , are not tracked on a project basis and are allocated based on management 's estimate . replace_table_token_3_th the process of conducting pre-clinical studies and clinical trials necessary to obtain regulatory approval is costly and time consuming . the probability of success for each product candidate and clinical trial may be affected by a variety of factors , including , among others , the quality of the product candidate 's early clinical data , investment in the program , competition , manufacturing capabilities and commercial viability . as a result of the uncertainties associated with clinical trial enrollments and the risks inherent in the development process , we are unable to determine the duration and completion costs of current or future clinical stages of our product candidates or when , or to what extent , we will generate revenues from the commercialization and sale of any of our product candidates . development timelines , probability of success and development costs vary widely . during the third quarter of 2011 , we received a notice from the u.s. food and drug administration , or fda , that our product candidate , neutrolin , had been assigned to the center for drug evaluation and research , or cder . as a result of this , and given our limited resources , we decided to change our business strategy and focus the majority of our resources on the research and development of neutrolin rather than crmd004 and to seek regulatory and commercialization approval for neutrolin in europe through a ce mark application rather than pursue fda approval at that time . on july 5 , 2013 , we received ce mark approval for neutrolin . as a result , in 2013 , we began the commercial launch of neutrolin in germany for the prevention of catheter-related bloodstream infections , or crbi , and maintenance of catheter patency in hemodialysis patients using a tunneled , cuffed central venous catheter for vascular access . in december 2014 , we received approval from the hessian district president in germany to expand the label to include use in oncology patients receiving chemotherapy , iv hydration and iv medications via central venous catheters . the expansion also adds patients receiving medication and iv fluids via central venous catheters in intensive or critical care units ( cardiac care unit , surgical care unit , neonatal critical care unit , and urgent care centers ) . an indication for use in total parenteral , or iv , nutrition was also approved . in september 2014 , the tuv-sud and the medicinal evaluation board of the netherlands ( meb ) granted a label expansion for neutrolin for these same expanded indications for the eu . to date , neutrolin is registered and may be sold in austria , germany , italy , malta , saudi arabia and the netherlands for such treatment . we are seeking to develop neutrolin in the u.s. based on our discussions with the fda , we expect to conduct at least one phase 3 clinical trial in hemodialysis catheters and one phase 3 clinical trial in oncology/total parenteral nutrition . story_separator_special_tag under asc 718 , share-based compensation cost is measured at grant date , based on the estimated fair value of the award , and is recognized as expense net of expected forfeitures , over the employee 's requisite service period on a straight-line basis . we account for stock options granted to non-employees on a fair value basis using the black-scholes option pricing model in accordance with asc 718 and asc 505. the non-cash charge to operations for non-employee options with vesting is based upon the change in the fair value of the options and amortized to expense over the related vesting period . for the purpose of valuing options and warrants granted to our directors , officers , employees and consultants , we used the black-scholes option pricing model . for the purpose of valuing performance based options granted to non-employees , we use the guidelines in accordance with fasb asc no . 505-50 ( “ asc 505 ” ) , “ equity-based payments to non-employees . ” if the performance condition is outside of the control of the non-employee , the cost to be recognized is the lowest aggregate fair value prior to the achievement of the performance condition , even if we believe it is probable that the performance condition will be achieved . valuations incorporate several variables , including expected term , expected volatility , expected dividend yield and a risk-free interest rate . we estimate the expected term of the options granted based on anticipated exercises in future periods . the expected stock price volatility for our stock options is calculated by examining historical volatilities for publicly traded industry peers , since we have limited trading history for our common stock . we will continue to analyze the expected stock price volatility and expected term assumptions as more historical data for our common stock becomes available . the expected dividend yield reflects our current and expected future policy for dividends on our common stock . to determine the risk-free interest rate , we utilize the u.s. treasury yield curve in effect at the time of grant with a term consistent with the expected term of our awards . stock compensation expense is recognized by applying the expected forfeiture rate during the vesting period to the fair value of the award . the estimation of the number of stock awards that will ultimately vest requires judgment , and to the extent actual results or updated estimates differ from our current estimates , compensation expense may need to be revised . we consider many factors when estimating expected forfeitures for stock awards granted to employees , officers and directors , including types of awards , employee class , and an analysis of our historical forfeitures . revenue recognition we recognize revenue in accordance with sec sab no . 101 , “ revenue recognition in financial statements ” ( “ sab 101 ” ) , as amended by sab no . 104 , “ revenue recognition ” ( “ sab 104 ” ) and fasb asc 605 , “ revenue recognition ” ( “ asc 605 ” ) . our product neutrolin received its ce mark in europe in july 2013 and shipment of product to the dialysis centers began in december 2013. in accordance with sab 101 and sab 104 , we recognize revenue from product sales when the following four revenue recognition criteria are met : persuasive evidence of an arrangement exists , delivery has occurred , the selling price is fixed or determinable , and collectability is reasonably assured . we recognize revenue upon shipment of product to the dialysis centers because the four revenue recognition criteria are met at that time . during the year ended december 31 , 2014 , we entered into a distribution agreement with wonik corporation , a south korean company , to market , sell and distribute neutrolin for hemodialysis and oncolytic patients upon receipt of regulatory approval in korea . upon execution of the agreement , wonik paid to us a non-refundable $ 50,000 payment and will pay an additional $ 50,000 upon receipt of the product registration necessary to sell neutrolin in the republic of korea . revenue associated with the non-refundable up-front payment under this arrangement is deferred and recognized as revenue on a straight-line basis over the contractual term of our agreement . 39 inventory valuation we engage third parties to manufacture and package inventory held for sale , takes title to certain inventory once manufactured , and warehouses such goods until packaged for final distribution and sale . inventories are stated at the lower of cost or market price with cost determined on a first-in , first-out basis . inventories are reviewed periodically to identify slow-moving or obsolete inventory based on sales activity , both projected and historical , as well as product shelf-life . in evaluating the recoverability of our inventories , we consider the probability that revenue will be obtained from the future sale of the related inventory and , if required , will write down inventory quantities in excess of expected requirements . expired inventory is disposed of and the related costs are recognized as cost of product sales in the consolidated statements of operations . we analyze our inventory levels to identify inventory that may expire prior to sale , inventory that has a cost basis in excess of its estimated realizable value , or inventory in excess of expected sales requirements . although the manufacturing of our products is subject to strict quality controls , certain batches or units of product may no longer meet quality specifications or may expire , which would require adjustments to our inventory values . in the future , reduced demand , quality issues or excess supply beyond those anticipated by management may result in an adjustment to inventory levels , which would be recorded as an increase to cost of product sales . the determination of whether or not inventory costs will be

sources of liquidity as a result of our cost of sales , r & d and sg & a expenditures and the lack of substantial product sales revenue , we have not been profitable and have generated operating losses since we were incorporated in july 2006. we received ce mark approval for our neutrolin product in july 2013 and launched our product in the eu in december 2013. in february 2013 , we sold 761,429 shares of our series a non-voting convertible preferred stock and a warrant to purchase up to 400,000 shares of our common stock for gross proceeds of $ 533,000. in may 2013 , we sold $ 1,500,000 of convertible notes and warrants to purchase up to 750,000 shares of our common stock . in july 2013 , we sold 454,546 shares of series b non-voting convertible preferred stock and a warrant to purchase up to 227,273 shares of our common stock for gross proceeds of $ 500,000. in october 2013 we sold 150,000 shares of our series c-1 and 150,000 shares of our series c-2 non-voting convertible preferred stock and warrants to purchase up to 1,500,000 shares of our common stock for gross proceeds of $ 3,000,000. additionally , we exchanged $ 400,000 in principal amount of convertible notes issued in september 2012 for 57,400 shares of our series d non-voting convertible preferred stock and also exchanged $ 750,000 in principal amount of convertible notes issued in may 2013 for 53,537 shares of our series e non-voting convertible preferred stock . all of the series a and series c-1 non-voting convertible preferred stock have converted to 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. ```sources of liquidity as a result of our cost of sales , r & d and sg & a expenditures and the lack of substantial product sales revenue , we have not been profitable and have generated operating losses since we were incorporated in july 2006. we received ce mark approval for our neutrolin product in july 2013 and launched our product in the eu in december 2013. in february 2013 , we sold 761,429 shares of our series a non-voting convertible preferred stock and a warrant to purchase up to 400,000 shares of our common stock for gross proceeds of $ 533,000. in may 2013 , we sold $ 1,500,000 of convertible notes and warrants to purchase up to 750,000 shares of our common stock . in july 2013 , we sold 454,546 shares of series b non-voting convertible preferred stock and a warrant to purchase up to 227,273 shares of our common stock for gross proceeds of $ 500,000. in october 2013 we sold 150,000 shares of our series c-1 and 150,000 shares of our series c-2 non-voting convertible preferred stock and warrants to purchase up to 1,500,000 shares of our common stock for gross proceeds of $ 3,000,000. additionally , we exchanged $ 400,000 in principal amount of convertible notes issued in september 2012 for 57,400 shares of our series d non-voting convertible preferred stock and also exchanged $ 750,000 in principal amount of convertible notes issued in may 2013 for 53,537 shares of our series e non-voting convertible preferred stock . all of the series a and series c-1 non-voting convertible preferred stock have converted to common stock . ``` Suspicious Activity Report : we are seeking one or more strategic partners or other sources of capital to complete the development of neutrolin in the u.s. financial operations overview revenue we have not generated substantial revenue since our inception . as of december 31 , 2014 , we have funded our operations primarily through debt and equity financings and the ipo , our receipt of approximately $ 490,000 from federal grants under the qualifying therapeutic discovery project program , approximately $ 775,000 from the sale of our unused net operating losses through the state of new jersey 's economic development authority technology business tax certificate transfer program and approximately $ 35,000 from the state of new york 's research and development tax credit program . research and development expense research and development , or r & d , expense consists of : ( i ) internal costs associated with our development activities ; ( ii ) payments we make to third party contract research organizations , contract manufacturers , investigative sites , and consultants ; ( iii ) technology and intellectual property license costs ; ( iv ) manufacturing development costs ; ( v ) personnel related expenses , including salaries , stock-based compensation , benefits , travel and related costs for the personnel involved in drug development ; ( vi ) activities relating to regulatory filings and the advancement of our product candidates through preclinical studies and clinical trials ; and ( vii ) facilities and other allocated expenses , which include direct and allocated expenses for rent , facility maintenance , as well as laboratory and other supplies . all r & d is expensed as incurred . conducting a significant amount of development is central to our business model . product candidates in later-stage clinical development generally have higher development costs than those in earlier stages of development , primarily due to the significantly increased size and duration of the clinical trials . we plan to increase our r & d expenses for the foreseeable future in order to complete development of neutrolin in the u.s. 33 the following table summarizes the percentages of our r & d payments related to our two most advanced product candidates and other projects . the percentages summarized in the following table reflect payments directly attributable to each development candidate , which are tracked on a project basis . a portion of our internal costs , including indirect costs relating to our product candidates , are not tracked on a project basis and are allocated based on management 's estimate . replace_table_token_3_th the process of conducting pre-clinical studies and clinical trials necessary to obtain regulatory approval is costly and time consuming . the probability of success for each product candidate and clinical trial may be affected by a variety of factors , including , among others , the quality of the product candidate 's early clinical data , investment in the program , competition , manufacturing capabilities and commercial viability . as a result of the uncertainties associated with clinical trial enrollments and the risks inherent in the development process , we are unable to determine the duration and completion costs of current or future clinical stages of our product candidates or when , or to what extent , we will generate revenues from the commercialization and sale of any of our product candidates . development timelines , probability of success and development costs vary widely . during the third quarter of 2011 , we received a notice from the u.s. food and drug administration , or fda , that our product candidate , neutrolin , had been assigned to the center for drug evaluation and research , or cder . as a result of this , and given our limited resources , we decided to change our business strategy and focus the majority of our resources on the research and development of neutrolin rather than crmd004 and to seek regulatory and commercialization approval for neutrolin in europe through a ce mark application rather than pursue fda approval at that time . on july 5 , 2013 , we received ce mark approval for neutrolin . as a result , in 2013 , we began the commercial launch of neutrolin in germany for the prevention of catheter-related bloodstream infections , or crbi , and maintenance of catheter patency in hemodialysis patients using a tunneled , cuffed central venous catheter for vascular access . in december 2014 , we received approval from the hessian district president in germany to expand the label to include use in oncology patients receiving chemotherapy , iv hydration and iv medications via central venous catheters . the expansion also adds patients receiving medication and iv fluids via central venous catheters in intensive or critical care units ( cardiac care unit , surgical care unit , neonatal critical care unit , and urgent care centers ) . an indication for use in total parenteral , or iv , nutrition was also approved . in september 2014 , the tuv-sud and the medicinal evaluation board of the netherlands ( meb ) granted a label expansion for neutrolin for these same expanded indications for the eu . to date , neutrolin is registered and may be sold in austria , germany , italy , malta , saudi arabia and the netherlands for such treatment . we are seeking to develop neutrolin in the u.s. based on our discussions with the fda , we expect to conduct at least one phase 3 clinical trial in hemodialysis catheters and one phase 3 clinical trial in oncology/total parenteral nutrition . story_separator_special_tag under asc 718 , share-based compensation cost is measured at grant date , based on the estimated fair value of the award , and is recognized as expense net of expected forfeitures , over the employee 's requisite service period on a straight-line basis . we account for stock options granted to non-employees on a fair value basis using the black-scholes option pricing model in accordance with asc 718 and asc 505. the non-cash charge to operations for non-employee options with vesting is based upon the change in the fair value of the options and amortized to expense over the related vesting period . for the purpose of valuing options and warrants granted to our directors , officers , employees and consultants , we used the black-scholes option pricing model . for the purpose of valuing performance based options granted to non-employees , we use the guidelines in accordance with fasb asc no . 505-50 ( “ asc 505 ” ) , “ equity-based payments to non-employees . ” if the performance condition is outside of the control of the non-employee , the cost to be recognized is the lowest aggregate fair value prior to the achievement of the performance condition , even if we believe it is probable that the performance condition will be achieved . valuations incorporate several variables , including expected term , expected volatility , expected dividend yield and a risk-free interest rate . we estimate the expected term of the options granted based on anticipated exercises in future periods . the expected stock price volatility for our stock options is calculated by examining historical volatilities for publicly traded industry peers , since we have limited trading history for our common stock . we will continue to analyze the expected stock price volatility and expected term assumptions as more historical data for our common stock becomes available . the expected dividend yield reflects our current and expected future policy for dividends on our common stock . to determine the risk-free interest rate , we utilize the u.s. treasury yield curve in effect at the time of grant with a term consistent with the expected term of our awards . stock compensation expense is recognized by applying the expected forfeiture rate during the vesting period to the fair value of the award . the estimation of the number of stock awards that will ultimately vest requires judgment , and to the extent actual results or updated estimates differ from our current estimates , compensation expense may need to be revised . we consider many factors when estimating expected forfeitures for stock awards granted to employees , officers and directors , including types of awards , employee class , and an analysis of our historical forfeitures . revenue recognition we recognize revenue in accordance with sec sab no . 101 , “ revenue recognition in financial statements ” ( “ sab 101 ” ) , as amended by sab no . 104 , “ revenue recognition ” ( “ sab 104 ” ) and fasb asc 605 , “ revenue recognition ” ( “ asc 605 ” ) . our product neutrolin received its ce mark in europe in july 2013 and shipment of product to the dialysis centers began in december 2013. in accordance with sab 101 and sab 104 , we recognize revenue from product sales when the following four revenue recognition criteria are met : persuasive evidence of an arrangement exists , delivery has occurred , the selling price is fixed or determinable , and collectability is reasonably assured . we recognize revenue upon shipment of product to the dialysis centers because the four revenue recognition criteria are met at that time . during the year ended december 31 , 2014 , we entered into a distribution agreement with wonik corporation , a south korean company , to market , sell and distribute neutrolin for hemodialysis and oncolytic patients upon receipt of regulatory approval in korea . upon execution of the agreement , wonik paid to us a non-refundable $ 50,000 payment and will pay an additional $ 50,000 upon receipt of the product registration necessary to sell neutrolin in the republic of korea . revenue associated with the non-refundable up-front payment under this arrangement is deferred and recognized as revenue on a straight-line basis over the contractual term of our agreement . 39 inventory valuation we engage third parties to manufacture and package inventory held for sale , takes title to certain inventory once manufactured , and warehouses such goods until packaged for final distribution and sale . inventories are stated at the lower of cost or market price with cost determined on a first-in , first-out basis . inventories are reviewed periodically to identify slow-moving or obsolete inventory based on sales activity , both projected and historical , as well as product shelf-life . in evaluating the recoverability of our inventories , we consider the probability that revenue will be obtained from the future sale of the related inventory and , if required , will write down inventory quantities in excess of expected requirements . expired inventory is disposed of and the related costs are recognized as cost of product sales in the consolidated statements of operations . we analyze our inventory levels to identify inventory that may expire prior to sale , inventory that has a cost basis in excess of its estimated realizable value , or inventory in excess of expected sales requirements . although the manufacturing of our products is subject to strict quality controls , certain batches or units of product may no longer meet quality specifications or may expire , which would require adjustments to our inventory values . in the future , reduced demand , quality issues or excess supply beyond those anticipated by management may result in an adjustment to inventory levels , which would be recorded as an increase to cost of product sales . the determination of whether or not inventory costs will be

we did not report segment information for pctel secure in this section because pctel secure was in the development stage during 2011 and 2012. results of operations years ended december 31 , 2012 , 2011 , and 2010 ( all amounts in tables , other than percentages , are in thousands ) revenues replace_table_token_5_th 16 revenues were approximately $ 88.8 million for the year ended december 31 , 2012 , an increase of 15.6 % from the prior year . in the year ended december 31 , 2012 versus the prior year , approximately 14 % of the increase in revenues was attributable to revenues from the businesses we acquired from envision in october 2011 and telworx in july 2012 and approximately 9 % was attributable to increased antenna product revenues , offsetting approximately 7 % from lower scanning receiver revenues . revenues were approximately $ 76.8 million for the year ended december 31 , 2011 , an increase of 11.0 % from the prior year . in the year ended december 31 , 2011 versus the prior year , approximately 6 % of the increase in revenues was attributable to antenna products and approximately 5 % of the increase in revenues was attributable to scanning products . the increase in antenna product revenues in 2011 compared to 2010 reflects continued success in penetrating our targeted vertical markets and higher gps antenna sales . the increase in revenues of our scanning products in 2011 was primarily due the launch of our new mx scanning receiver and the lte rollout in the u.s. gross profit replace_table_token_6_th gross profit as a percentage of total revenue was 40.3 % in 2012 compared to 46.7 % in 2011 and 44.9 % in 2010. the margin percentage decrease is related to a higher volume of antenna products relative to scanner products and the addition of the lower margin products from telworx . the gross margin degradation is because of unfavorable product mix ( 6.8 % ) , offsetting higher product margin of 0.4 % for the year ended december 31 , 2012 compared to the year ended december 31 , 2011. gross profit as a percentage of total revenue was 46.7 % in 2011 compared to 44.9 % in 2010 and 46.6 % in 2009. the margin percentage increase was related to favorable product mix and increased revenues during 2011 for both antenna products and scanning products . scanning product revenue , with higher gross margins relative to antenna products , increased faster than antenna revenue . higher product margin for both antenna and scanning products contributed 0.9 % of the margin percentage increase and product mix contributed 0.8 % of the margin percentage increase for the year ended december 31 , 2011 compared to the year ended december 31 , 2010. research and development replace_table_token_7_th research and development expenses decreased approximately $ 0.7 million from 2011 to 2012. in 2012 , our expenses decreased by approximately $ 1.0 million for scanning receivers , offsetting an increase of $ 0.3 million for pctel secure . expenses decreased for scanner products because our mx scanning receiver was completed in 2011. for pctel secure , we incurred expenses for the completion of our prototype . research and development expenses increased $ 0.1 million from 2010 to 2011. in 2011 , we incurred $ 1.6 million of expense related to pctel secure , and research and development expenses other than for pctel secure decreased by $ 1.5 million primarily due to the completion of several projects in scanner receiver development . expenses increased even though our headcount declined from december 31 , 2010 to december 31 , 2011 primarily because the headcount reductions occurred at the end of the third quarter 2011. we had 58 , 56 , and 65 full-time equivalent employees in research and development at december 31 , 2012 , 2011 , and 2010 , respectively . 17 sales and marketing replace_table_token_8_th sales and marketing expenses include costs associated with the sales and marketing employees , sales representatives , product line management , and trade show expenses . sales and marketing expenses increased $ 0.9 million from 2011 to 2012. the increase was primarily due to the addition of $ 1.0 million of sales expenses associated with the business acquired from the telworx acquisition . sales and marketing expenses increased $ 0.4 million from 2010 to 2011. the expense increase was due to our investment in antenna vertical markets , sales and marketing expenses for pctel secure , and due to higher commissions and variable compensation related to the increased revenues . we had 70 , 50 , and 48 full-time equivalent employees in sales and marketing at december 31 , 2012 , 2011 , and 2010 , respectively . general and administrative replace_table_token_9_th general and administrative expenses include costs associated with the general management , finance , human resources , information technology , legal , public company costs , and other operating expenses to the extent not otherwise allocated to other functions . general and administrative expenses increased $ 0.2 million from 2011 to 2012. the increase was due to $ 0.6 million additional expenses associated with the implementation of our enterprise resource planning ( “erp” ) system and $ 0.5 million of expenses for the telworx business , offsetting the reduction of approximately $ 0.9 million related to incentive plans . we incurred $ 0.5 million of general and administrative expense for the business acquired from telworx . general and administrative expenses increased $ 0.6 million from 2010 to 2011. the expense increase is primarily due to certain expenses related to the implementation of our new enterprise resource planning ( “erp” ) system . story_separator_special_tag to the extent we prevail in matters for which liabilities have been established , or are required to pay amounts in excess of our liabilities , our effective tax rate in a given period may be materially affected . an unfavorable tax settlement would require cash payments and may result in an increase in our effective tax rate in the year of resolution . a favorable tax settlement would be recognized as a reduction in our effective tax rate in the year of resolution . valuation allowances for deferred tax assets - we establish an income tax valuation allowance when available evidence indicates that it is more likely than not that all or a portion of a deferred tax asset will not be realized . in assessing the need for a valuation allowance , we consider the amounts and timing of expected future deductions or carryforwards and sources of taxable income that may enable utilization . we maintain an existing valuation allowance until sufficient positive evidence exists to support its reversal . changes in the amount or 25 timing of expected future deductions or taxable income may have a material impact on the level of income tax valuation allowances . our assessment of the realizability of the deferred tax assets requires judgment about our future results . inherent in this estimation is the requirement for us to estimate future book and taxable income and possible tax planning strategies . these estimates require us to exercise judgment about our future results , the prudence and feasibility of possible tax planning strategies , and the economic environment in which we do business . it is possible that the actual results will differ from the assumptions and require adjustments to the allowance . adjustments to the allowance would affect future net income . impairment reviews of goodwill - we perform an annual impairment test of goodwill as of the end of the first month of the fiscal fourth quarter ( october 31st ) , or at an interim date if an event occurs or if circumstances change that would indicate that an impairment loss may have been incurred . in performing our annual impairment test , we first perform a qualitative assessment to determine whether it is more likely that not that the fair value of a reporting unit is less than its carrying value , including goodwill . if our qualitative assessment is indicative of possible impairment , then a two-step quantitative fair value assessment is performed at the reporting unit level . in the first step , the fair value of each reporting unit is compared with its carrying value . if the fair value exceeds the carrying value , then goodwill is not impaired and no further testing is performed . the second step is performed if the carrying value exceeds the fair value . the implied fair value of goodwill is then compared against the carrying value of goodwill to determine the amount of impairment . the process of evaluating the potential impairment of goodwill is subjective because it requires the use of estimates and assumptions in determining a reporting unit 's fair value . we calculate the fair value of each reporting unit by using a blended analysis of the present value of future discounted cash flows and the market approach of valuation . the discounted cash flow method requires us to use estimates and judgments about the future cash flows of the reporting units . although we base cash flow forecasts on assumptions that are consistent with plans and estimates we use to manage the underlying reporting units , there is significant judgment in determining the cash flows attributable to these reporting units , including markets and market share , sales volumes and mix , research and development expenses , tax rates , capital spending , discount rate and working capital changes . cash flow forecasts are based on reporting unit operating plans for the early years and business projections in later years . the market approach is based on a comparison of the company to comparable publicly traded firms in similar lines of business . this method requires us to use estimates and judgments when determining comparable companies . we assess such factors as size , growth , profitability , risk and return on investment . we believe the accounting estimate related to the valuation of goodwill is a critical accounting estimate because it requires us to make assumptions that are highly uncertain about the future cash flows of our reporting units . changes in these estimates can have a material impact on our financial statements . while the use of historical results and future projections can result in different valuations for a business , it is a generally accepted valuation practice to apply more than one valuation technique to establish a range of values for a business . since each technique relies on different inputs and assumptions , it is unlikely that each technique would yield the same results . however , it is expected that the different techniques would establish a reasonable range . in determining the fair value , we weigh the two methods equally because we believe both methods have an equal probability of providing an appropriate fair value . impairment reviews of intangible assets - we evaluate the carrying value of intangible assets and other long-lived assets for impairment whenever indicators of impairment exist . we test finite-lived intangible assets for recoverability using pretax undiscounted cash flows . although we base cash flow forecasts on assumptions that are consistent with plans and estimates we use to manage the underlying operating segments , there is significant judgment in determining the cash flows attributable to these operating segments , including markets and market share , sales volumes and mix , research and development expenses , capital spending and working capital changes . cash flow forecasts are based on operating plans and business projections . we compare the pretax undiscounted cash flows to the

liquidity and capital resources overview at december 31 , 2012 , our cash , cash equivalents , and investments were approximately $ 51.2 million and we had working capital of approximately $ 74.4 million . our primary source of liquidity is cash provided by operations , with short term swings in liquidity supported by a significant balance of cash and short-term investments . the balance has fluctuated with cash from operations , acquisitions and divestitures , implementation of a new erp system and the repurchase of our common shares . within operating activities , we are historically a net generator of operating funds from our income statement activities and a net user of operating funds for balance sheet expansion . we expect this historical trend to continue in the future . within investing activities , capital spending historically ranges between 3 % and 5 % of our revenue . the primary use of capital is for manufacturing and development engineering requirements . our capital expenditures during 2012 were approximately 4 % of revenues because we spent $ 1.7 million in 2012 related to the implementation of a new erp system . our capital expenditures during 2011 were approximately 6 % of revenues 21 because we spent $ 2.8 million in 2011 related to the implementation of a new erp system . we historically have significant transfers between investments and cash as we rotate our cash and short-term investment balances between money market funds , which are accounted for as cash equivalents , and other investment vehicles . we have a history of supplementing our organic revenue growth with acquisitions of product lines or companies , resulting in significant uses of our cash and investments from time to time . we expect the historical trend for capital spending and the variability caused by moving money between cash and investments and periodic merger and acquisition activity to 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 overview at december 31 , 2012 , our cash , cash equivalents , and investments were approximately $ 51.2 million and we had working capital of approximately $ 74.4 million . our primary source of liquidity is cash provided by operations , with short term swings in liquidity supported by a significant balance of cash and short-term investments . the balance has fluctuated with cash from operations , acquisitions and divestitures , implementation of a new erp system and the repurchase of our common shares . within operating activities , we are historically a net generator of operating funds from our income statement activities and a net user of operating funds for balance sheet expansion . we expect this historical trend to continue in the future . within investing activities , capital spending historically ranges between 3 % and 5 % of our revenue . the primary use of capital is for manufacturing and development engineering requirements . our capital expenditures during 2012 were approximately 4 % of revenues because we spent $ 1.7 million in 2012 related to the implementation of a new erp system . our capital expenditures during 2011 were approximately 6 % of revenues 21 because we spent $ 2.8 million in 2011 related to the implementation of a new erp system . we historically have significant transfers between investments and cash as we rotate our cash and short-term investment balances between money market funds , which are accounted for as cash equivalents , and other investment vehicles . we have a history of supplementing our organic revenue growth with acquisitions of product lines or companies , resulting in significant uses of our cash and investments from time to time . we expect the historical trend for capital spending and the variability caused by moving money between cash and investments and periodic merger and acquisition activity to continue in the future . ``` Suspicious Activity Report : we did not report segment information for pctel secure in this section because pctel secure was in the development stage during 2011 and 2012. results of operations years ended december 31 , 2012 , 2011 , and 2010 ( all amounts in tables , other than percentages , are in thousands ) revenues replace_table_token_5_th 16 revenues were approximately $ 88.8 million for the year ended december 31 , 2012 , an increase of 15.6 % from the prior year . in the year ended december 31 , 2012 versus the prior year , approximately 14 % of the increase in revenues was attributable to revenues from the businesses we acquired from envision in october 2011 and telworx in july 2012 and approximately 9 % was attributable to increased antenna product revenues , offsetting approximately 7 % from lower scanning receiver revenues . revenues were approximately $ 76.8 million for the year ended december 31 , 2011 , an increase of 11.0 % from the prior year . in the year ended december 31 , 2011 versus the prior year , approximately 6 % of the increase in revenues was attributable to antenna products and approximately 5 % of the increase in revenues was attributable to scanning products . the increase in antenna product revenues in 2011 compared to 2010 reflects continued success in penetrating our targeted vertical markets and higher gps antenna sales . the increase in revenues of our scanning products in 2011 was primarily due the launch of our new mx scanning receiver and the lte rollout in the u.s. gross profit replace_table_token_6_th gross profit as a percentage of total revenue was 40.3 % in 2012 compared to 46.7 % in 2011 and 44.9 % in 2010. the margin percentage decrease is related to a higher volume of antenna products relative to scanner products and the addition of the lower margin products from telworx . the gross margin degradation is because of unfavorable product mix ( 6.8 % ) , offsetting higher product margin of 0.4 % for the year ended december 31 , 2012 compared to the year ended december 31 , 2011. gross profit as a percentage of total revenue was 46.7 % in 2011 compared to 44.9 % in 2010 and 46.6 % in 2009. the margin percentage increase was related to favorable product mix and increased revenues during 2011 for both antenna products and scanning products . scanning product revenue , with higher gross margins relative to antenna products , increased faster than antenna revenue . higher product margin for both antenna and scanning products contributed 0.9 % of the margin percentage increase and product mix contributed 0.8 % of the margin percentage increase for the year ended december 31 , 2011 compared to the year ended december 31 , 2010. research and development replace_table_token_7_th research and development expenses decreased approximately $ 0.7 million from 2011 to 2012. in 2012 , our expenses decreased by approximately $ 1.0 million for scanning receivers , offsetting an increase of $ 0.3 million for pctel secure . expenses decreased for scanner products because our mx scanning receiver was completed in 2011. for pctel secure , we incurred expenses for the completion of our prototype . research and development expenses increased $ 0.1 million from 2010 to 2011. in 2011 , we incurred $ 1.6 million of expense related to pctel secure , and research and development expenses other than for pctel secure decreased by $ 1.5 million primarily due to the completion of several projects in scanner receiver development . expenses increased even though our headcount declined from december 31 , 2010 to december 31 , 2011 primarily because the headcount reductions occurred at the end of the third quarter 2011. we had 58 , 56 , and 65 full-time equivalent employees in research and development at december 31 , 2012 , 2011 , and 2010 , respectively . 17 sales and marketing replace_table_token_8_th sales and marketing expenses include costs associated with the sales and marketing employees , sales representatives , product line management , and trade show expenses . sales and marketing expenses increased $ 0.9 million from 2011 to 2012. the increase was primarily due to the addition of $ 1.0 million of sales expenses associated with the business acquired from the telworx acquisition . sales and marketing expenses increased $ 0.4 million from 2010 to 2011. the expense increase was due to our investment in antenna vertical markets , sales and marketing expenses for pctel secure , and due to higher commissions and variable compensation related to the increased revenues . we had 70 , 50 , and 48 full-time equivalent employees in sales and marketing at december 31 , 2012 , 2011 , and 2010 , respectively . general and administrative replace_table_token_9_th general and administrative expenses include costs associated with the general management , finance , human resources , information technology , legal , public company costs , and other operating expenses to the extent not otherwise allocated to other functions . general and administrative expenses increased $ 0.2 million from 2011 to 2012. the increase was due to $ 0.6 million additional expenses associated with the implementation of our enterprise resource planning ( “erp” ) system and $ 0.5 million of expenses for the telworx business , offsetting the reduction of approximately $ 0.9 million related to incentive plans . we incurred $ 0.5 million of general and administrative expense for the business acquired from telworx . general and administrative expenses increased $ 0.6 million from 2010 to 2011. the expense increase is primarily due to certain expenses related to the implementation of our new enterprise resource planning ( “erp” ) system . story_separator_special_tag to the extent we prevail in matters for which liabilities have been established , or are required to pay amounts in excess of our liabilities , our effective tax rate in a given period may be materially affected . an unfavorable tax settlement would require cash payments and may result in an increase in our effective tax rate in the year of resolution . a favorable tax settlement would be recognized as a reduction in our effective tax rate in the year of resolution . valuation allowances for deferred tax assets - we establish an income tax valuation allowance when available evidence indicates that it is more likely than not that all or a portion of a deferred tax asset will not be realized . in assessing the need for a valuation allowance , we consider the amounts and timing of expected future deductions or carryforwards and sources of taxable income that may enable utilization . we maintain an existing valuation allowance until sufficient positive evidence exists to support its reversal . changes in the amount or 25 timing of expected future deductions or taxable income may have a material impact on the level of income tax valuation allowances . our assessment of the realizability of the deferred tax assets requires judgment about our future results . inherent in this estimation is the requirement for us to estimate future book and taxable income and possible tax planning strategies . these estimates require us to exercise judgment about our future results , the prudence and feasibility of possible tax planning strategies , and the economic environment in which we do business . it is possible that the actual results will differ from the assumptions and require adjustments to the allowance . adjustments to the allowance would affect future net income . impairment reviews of goodwill - we perform an annual impairment test of goodwill as of the end of the first month of the fiscal fourth quarter ( october 31st ) , or at an interim date if an event occurs or if circumstances change that would indicate that an impairment loss may have been incurred . in performing our annual impairment test , we first perform a qualitative assessment to determine whether it is more likely that not that the fair value of a reporting unit is less than its carrying value , including goodwill . if our qualitative assessment is indicative of possible impairment , then a two-step quantitative fair value assessment is performed at the reporting unit level . in the first step , the fair value of each reporting unit is compared with its carrying value . if the fair value exceeds the carrying value , then goodwill is not impaired and no further testing is performed . the second step is performed if the carrying value exceeds the fair value . the implied fair value of goodwill is then compared against the carrying value of goodwill to determine the amount of impairment . the process of evaluating the potential impairment of goodwill is subjective because it requires the use of estimates and assumptions in determining a reporting unit 's fair value . we calculate the fair value of each reporting unit by using a blended analysis of the present value of future discounted cash flows and the market approach of valuation . the discounted cash flow method requires us to use estimates and judgments about the future cash flows of the reporting units . although we base cash flow forecasts on assumptions that are consistent with plans and estimates we use to manage the underlying reporting units , there is significant judgment in determining the cash flows attributable to these reporting units , including markets and market share , sales volumes and mix , research and development expenses , tax rates , capital spending , discount rate and working capital changes . cash flow forecasts are based on reporting unit operating plans for the early years and business projections in later years . the market approach is based on a comparison of the company to comparable publicly traded firms in similar lines of business . this method requires us to use estimates and judgments when determining comparable companies . we assess such factors as size , growth , profitability , risk and return on investment . we believe the accounting estimate related to the valuation of goodwill is a critical accounting estimate because it requires us to make assumptions that are highly uncertain about the future cash flows of our reporting units . changes in these estimates can have a material impact on our financial statements . while the use of historical results and future projections can result in different valuations for a business , it is a generally accepted valuation practice to apply more than one valuation technique to establish a range of values for a business . since each technique relies on different inputs and assumptions , it is unlikely that each technique would yield the same results . however , it is expected that the different techniques would establish a reasonable range . in determining the fair value , we weigh the two methods equally because we believe both methods have an equal probability of providing an appropriate fair value . impairment reviews of intangible assets - we evaluate the carrying value of intangible assets and other long-lived assets for impairment whenever indicators of impairment exist . we test finite-lived intangible assets for recoverability using pretax undiscounted cash flows . although we base cash flow forecasts on assumptions that are consistent with plans and estimates we use to manage the underlying operating segments , there is significant judgment in determining the cash flows attributable to these operating segments , including markets and market share , sales volumes and mix , research and development expenses , capital spending and working capital changes . cash flow forecasts are based on operating plans and business projections . we compare the pretax undiscounted cash flows to the

the company also owns and operates golf galaxy , field & stream and other specialty concept stores , and dick 's team sports hq , an all-in-one youth sports digital platform offering free league management services , mobile apps for scheduling , communications and live scorekeeping , custom uniforms and fanwear and access to donations and sponsorships . the company offers its products through a content-rich ecommerce platform that is integrated with its store network and provides customers with the convenience and expertise of a 24-hour storefront . when used in this annual report on form 10-k , unless the context otherwise requires or otherwise specifies , any reference to `` year `` is to the company 's fiscal year . the primary factors that have historically influenced the company 's profitability and success have been the growth in its number of stores and selling square footage , the integration of ecommerce with its brick and mortar stores , positive consolidated same store sales , which include the company 's ecommerce business , and its strong gross profit margins . over the last five years , the company has grown from 480 dick 's sporting goods stores at the end of fiscal 2011 to 676 dick 's sporting goods stores at the end of fiscal 2016 . the company 's ecommerce sales penetration to total net sales has increased from 3.5 % in fiscal 2011 to 11.9 % in fiscal 2016 . in recent years , the company has innovated its ecommerce sites with enhancements in the customer experience , new releases of its mobile and tablet sites , and development of capabilities that integrate the company 's online presence with its brick and mortar stores , including ship-from-store ; buy-online , pick-up in-store ; return-to-store and multi-faceted marketing campaigns that are consistent across our stores and our ecommerce websites . on average , approximately 80 % of the company 's ecommerce sales are generated within brick and mortar trade areas . the company 's senior management focuses on certain key indicators to monitor the company 's performance including : consolidated same store sales performance – our management considers same store sales , which consists of both brick and mortar and ecommerce sales , to be an important indicator of our current performance . same store sales results are important to leverage our costs , which include occupancy costs , store payroll and other store expenses . same store sales also have a direct impact on our total net sales , cash and working capital . see further discussion of the company 's consolidated same store sales within part ii , item 6 . `` selected financial data `` . operating cash flow – cash flow generation supports the general operating needs of the company and funds capital expenditures from its omni-channel platform , distribution and administrative facilities , costs associated with continued improvement of information technology tools , potential strategic acquisitions or investments that may arise from time to time and stockholder return initiatives , including cash dividends and share repurchases . we typically generate significant positive operating cash flows and proportionately higher net income levels in our fiscal fourth quarter in connection with the holiday selling season and in part to sales of cold weather sporting goods and apparel . see further discussion of the company 's cash flows in the `` liquidity and capital resources `` section herein . quality of merchandise offerings – to measure acceptance of its merchandise offerings , the company monitors sell-throughs , inventory turns , gross margins and markdown rates on a department and style level . this analysis helps the company manage inventory levels to reduce cash flow requirements and deliver optimal gross margins by improving merchandise flow and establishing appropriate price points to minimize markdowns . store productivity – to assess store-level performance , the company monitors various indicators , including new store productivity , sales per square foot , store operating contribution margin and store cash flow . 22 executive summary earnings per diluted share of $ 2.56 in fiscal 2016 decreased compared to earnings per diluted share of $ 2.83 in fiscal 2015 . net income for fiscal 2016 totaled $ 287.4 million compared to $ 330.4 million in fiscal 2015 . fiscal 2016 net income includes $ 62.3 million , net of tax , or $ 0.56 per diluted share of costs for asset write-downs , impairments and merger and integration costs . fiscal 2015 net income included $ 4.7 million , net of tax , or $ 0.04 per diluted share , from a litigation settlement charge . net sales increased 9 % to $ 7,922.0 million in fiscal 2016 from $ 7,271.0 million in fiscal 2015 . ecommerce sales penetration in fiscal 2016 increased to 11.9 % of total net sales compared to 10.3 % in fiscal 2015 . during fiscal 2016 , the company : declared and paid aggregate cash dividends of $ 0.605 per share of common stock and class b common stock . repurchased 3.1 million shares of common stock for $ 145.7 million . completed acquisitions of certain assets of the sports authority ( `` tsa `` ) and golfsmith international holdings ( `` golfsmith `` ) and acquired two sports management technology companies , affinity sports and gamechanger . ended the period with no outstanding borrowings under its credit agreement . the following table summarizes store openings and closings for fiscal 2016 and fiscal 2015 : replace_table_token_6_th ( 1 ) includes the company 's golf galaxy , field & stream and other specialty concept stores . story_separator_special_tag changes in operating assets and liabilities primarily reflect changes in inventories , accounts payable and income taxes payable / receivable , as well as other working capital changes . story_separator_special_tag ize:10pt ; `` > vendor allowances include allowances , rebates and cooperative advertising funds received from vendors . these funds are determined for each fiscal year and the majority are based on various quantitative contract terms . amounts expected to be received from vendors for the purchase of merchandise inventories are treated as a reduction of inventory and reduce cost of goods sold as the merchandise is sold . amounts that represent a reimbursement of costs incurred , such as advertising , are recorded as a reduction to the related expense in the period that the related expense is incurred . the company records an estimate of earned allowances based on the latest projected purchase volumes and advertising forecasts . goodwill and intangible assets goodwill , indefinite-lived and other finite-lived intangible assets are reviewed for impairment on an annual basis , or whenever circumstances indicate that a decline in value may have occurred . our evaluation for impairment requires accounting judgments and financial estimates in determining the fair value of the reporting unit . if these judgments or estimates change in the future , we may be required to record impairment charges for these assets . the goodwill impairment test is a two-step impairment test . in the first step , the company compares the fair value of each reporting unit to its carrying value . the company determines the fair value of its reporting units using a combination of a discounted cash flow and a market value approach . the company 's estimates may differ from actual results due to , among other things , economic conditions , changes to its business models , or changes in operating performance . significant differences between these estimates and actual results could result in future impairment charges and could materially affect the company 's future financial results . if the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that reporting unit , goodwill is not impaired and the company is not required to perform further testing . if the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit , then the company must perform the second step in order to determine the implied fair value of the reporting unit 's goodwill and compare it to the carrying value of the reporting unit 's goodwill . the activities in the second step include valuing the tangible and intangible assets and liabilities of the impaired reporting unit based on their fair value and determining the fair value of the impaired reporting unit 's goodwill based upon the residual of the aggregate identified tangible and intangible assets and liabilities . as of january 28 , 2017 , the company had no reporting unit ( s ) at risk for goodwill impairment . 30 intangible assets that have been determined to have indefinite lives are also not subject to amortization and are reviewed at least annually for potential impairment , or more frequently as mentioned above . the fair value of the company 's intangible assets are estimated and compared to their carrying value . the company estimates the fair value of these intangible assets based on an income approach using the relief-from-royalty method . this methodology assumes that , in lieu of ownership , a third party would be willing to pay a royalty in order to exploit the related benefits of these types of assets . this approach is dependent on a number of factors , including estimates of future sales growth and trends , royalty rates in the category of intellectual property , discount rates and other variables . if actual results are not consistent with our estimates and assumptions used in estimating fair value , the company may be exposed to losses that could be material . the company does not believe there is reasonable likelihood that there will be a material change in the estimates or assumptions used to calculate fair value . the company recognizes an impairment charge when the estimated fair value of the intangible asset is less than the carrying value . impairment of long-lived assets and closed store reserves the company reviews long-lived assets whenever events and circumstances indicate that the carrying value of these assets may not be recoverable based on estimated undiscounted future cash flows . assets are reviewed at the lowest level for which cash flows can be identified , which is the store level . the company uses an income approach to determine the fair value of individual store locations , which requires discounting projected future cash flows over its remaining lease term . when determining the stream of projected future cash flows associated with an individual store location , the company makes assumptions , incorporating local market conditions , about key store variables including sales growth rates , gross margin and controllable expenses , such as store payroll . an impairment loss is recognized when the carrying amount of the store location is not recoverable and exceeds its fair value . based on an analysis of current and future store performance , management periodically evaluates the need to close underperforming stores . reserves are established for the present value of any remaining operating lease obligations , net of estimated sublease income , when the company ceases to use the location . if the timing or amount of actual sublease income differs from estimated amounts , this could result in an increase or decrease in the related reserves . self-insurance the company is self-insured for certain losses related to health , workers ' compensation and general liability insurance , although we maintain stop-loss coverage with third party insurers to limit our liability exposure . liabilities associated with these losses are estimated in part by considering

cash provided by operating activities increased $ 115.5 million in fiscal 2016 to $ 759.0 million . the increase in cash provided by operating activities is due primarily to a $ 171.3 million increase in cash flows provided by changes in operating assets and liabilities , partially offset by a $ 43.0 million decrease in net income and a $ 12.8 million decrease in non-cash items . the increase in operating assets and liabilities year-over-year is primarily due to the following : cash flows provided by changes in inventory and accounts payable increased $ 77.3 million compared to fiscal 2015 , primarily attributable to the timing of inventory receipts . changes in accrued expenses increased operating cash flows by $ 59.3 million compared to the prior year , primarily due to year-over-year changes in incentive compensation accruals and corresponding payments . changes in income taxes payable / receivable for fiscal 2016 increased operating cash flows by $ 18.9 million compared to the same period in fiscal 2015 , primarily due to the timing of tax payments . tax payments are impacted year-over-year primarily by the timing of deductions from capital expenditures and the level of stock option exercises . investing activities cash used in investing activities for fiscal 2016 increased by $ 177.9 million to $ 550.3 million from fiscal 2015 primarily due to current year acquisitions coupled with a $ 51.9 million increase in gross capital expenditures . during fiscal 2016 , the company acquired certain assets of tsa and golfsmith as well as two sports management technology companies , affinity sports and gamechanger , for $ 118.8 million . the increase in gross capital expenditures was primarily driven by the company 's full-service footwear store initiative . financing activities cash used in financing activities consists primarily of the company 's capital return initiatives , including its share repurchase program and cash dividend payments , and cash flows generated from stock option exercises . cash used in financing activities for fiscal 2016 totaled $ 162.9 million compared to $ 373.7 million in fiscal 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 provided by operating activities increased $ 115.5 million in fiscal 2016 to $ 759.0 million . the increase in cash provided by operating activities is due primarily to a $ 171.3 million increase in cash flows provided by changes in operating assets and liabilities , partially offset by a $ 43.0 million decrease in net income and a $ 12.8 million decrease in non-cash items . the increase in operating assets and liabilities year-over-year is primarily due to the following : cash flows provided by changes in inventory and accounts payable increased $ 77.3 million compared to fiscal 2015 , primarily attributable to the timing of inventory receipts . changes in accrued expenses increased operating cash flows by $ 59.3 million compared to the prior year , primarily due to year-over-year changes in incentive compensation accruals and corresponding payments . changes in income taxes payable / receivable for fiscal 2016 increased operating cash flows by $ 18.9 million compared to the same period in fiscal 2015 , primarily due to the timing of tax payments . tax payments are impacted year-over-year primarily by the timing of deductions from capital expenditures and the level of stock option exercises . investing activities cash used in investing activities for fiscal 2016 increased by $ 177.9 million to $ 550.3 million from fiscal 2015 primarily due to current year acquisitions coupled with a $ 51.9 million increase in gross capital expenditures . during fiscal 2016 , the company acquired certain assets of tsa and golfsmith as well as two sports management technology companies , affinity sports and gamechanger , for $ 118.8 million . the increase in gross capital expenditures was primarily driven by the company 's full-service footwear store initiative . financing activities cash used in financing activities consists primarily of the company 's capital return initiatives , including its share repurchase program and cash dividend payments , and cash flows generated from stock option exercises . cash used in financing activities for fiscal 2016 totaled $ 162.9 million compared to $ 373.7 million in fiscal 2015 . ``` Suspicious Activity Report : the company also owns and operates golf galaxy , field & stream and other specialty concept stores , and dick 's team sports hq , an all-in-one youth sports digital platform offering free league management services , mobile apps for scheduling , communications and live scorekeeping , custom uniforms and fanwear and access to donations and sponsorships . the company offers its products through a content-rich ecommerce platform that is integrated with its store network and provides customers with the convenience and expertise of a 24-hour storefront . when used in this annual report on form 10-k , unless the context otherwise requires or otherwise specifies , any reference to `` year `` is to the company 's fiscal year . the primary factors that have historically influenced the company 's profitability and success have been the growth in its number of stores and selling square footage , the integration of ecommerce with its brick and mortar stores , positive consolidated same store sales , which include the company 's ecommerce business , and its strong gross profit margins . over the last five years , the company has grown from 480 dick 's sporting goods stores at the end of fiscal 2011 to 676 dick 's sporting goods stores at the end of fiscal 2016 . the company 's ecommerce sales penetration to total net sales has increased from 3.5 % in fiscal 2011 to 11.9 % in fiscal 2016 . in recent years , the company has innovated its ecommerce sites with enhancements in the customer experience , new releases of its mobile and tablet sites , and development of capabilities that integrate the company 's online presence with its brick and mortar stores , including ship-from-store ; buy-online , pick-up in-store ; return-to-store and multi-faceted marketing campaigns that are consistent across our stores and our ecommerce websites . on average , approximately 80 % of the company 's ecommerce sales are generated within brick and mortar trade areas . the company 's senior management focuses on certain key indicators to monitor the company 's performance including : consolidated same store sales performance – our management considers same store sales , which consists of both brick and mortar and ecommerce sales , to be an important indicator of our current performance . same store sales results are important to leverage our costs , which include occupancy costs , store payroll and other store expenses . same store sales also have a direct impact on our total net sales , cash and working capital . see further discussion of the company 's consolidated same store sales within part ii , item 6 . `` selected financial data `` . operating cash flow – cash flow generation supports the general operating needs of the company and funds capital expenditures from its omni-channel platform , distribution and administrative facilities , costs associated with continued improvement of information technology tools , potential strategic acquisitions or investments that may arise from time to time and stockholder return initiatives , including cash dividends and share repurchases . we typically generate significant positive operating cash flows and proportionately higher net income levels in our fiscal fourth quarter in connection with the holiday selling season and in part to sales of cold weather sporting goods and apparel . see further discussion of the company 's cash flows in the `` liquidity and capital resources `` section herein . quality of merchandise offerings – to measure acceptance of its merchandise offerings , the company monitors sell-throughs , inventory turns , gross margins and markdown rates on a department and style level . this analysis helps the company manage inventory levels to reduce cash flow requirements and deliver optimal gross margins by improving merchandise flow and establishing appropriate price points to minimize markdowns . store productivity – to assess store-level performance , the company monitors various indicators , including new store productivity , sales per square foot , store operating contribution margin and store cash flow . 22 executive summary earnings per diluted share of $ 2.56 in fiscal 2016 decreased compared to earnings per diluted share of $ 2.83 in fiscal 2015 . net income for fiscal 2016 totaled $ 287.4 million compared to $ 330.4 million in fiscal 2015 . fiscal 2016 net income includes $ 62.3 million , net of tax , or $ 0.56 per diluted share of costs for asset write-downs , impairments and merger and integration costs . fiscal 2015 net income included $ 4.7 million , net of tax , or $ 0.04 per diluted share , from a litigation settlement charge . net sales increased 9 % to $ 7,922.0 million in fiscal 2016 from $ 7,271.0 million in fiscal 2015 . ecommerce sales penetration in fiscal 2016 increased to 11.9 % of total net sales compared to 10.3 % in fiscal 2015 . during fiscal 2016 , the company : declared and paid aggregate cash dividends of $ 0.605 per share of common stock and class b common stock . repurchased 3.1 million shares of common stock for $ 145.7 million . completed acquisitions of certain assets of the sports authority ( `` tsa `` ) and golfsmith international holdings ( `` golfsmith `` ) and acquired two sports management technology companies , affinity sports and gamechanger . ended the period with no outstanding borrowings under its credit agreement . the following table summarizes store openings and closings for fiscal 2016 and fiscal 2015 : replace_table_token_6_th ( 1 ) includes the company 's golf galaxy , field & stream and other specialty concept stores . story_separator_special_tag changes in operating assets and liabilities primarily reflect changes in inventories , accounts payable and income taxes payable / receivable , as well as other working capital changes . story_separator_special_tag ize:10pt ; `` > vendor allowances include allowances , rebates and cooperative advertising funds received from vendors . these funds are determined for each fiscal year and the majority are based on various quantitative contract terms . amounts expected to be received from vendors for the purchase of merchandise inventories are treated as a reduction of inventory and reduce cost of goods sold as the merchandise is sold . amounts that represent a reimbursement of costs incurred , such as advertising , are recorded as a reduction to the related expense in the period that the related expense is incurred . the company records an estimate of earned allowances based on the latest projected purchase volumes and advertising forecasts . goodwill and intangible assets goodwill , indefinite-lived and other finite-lived intangible assets are reviewed for impairment on an annual basis , or whenever circumstances indicate that a decline in value may have occurred . our evaluation for impairment requires accounting judgments and financial estimates in determining the fair value of the reporting unit . if these judgments or estimates change in the future , we may be required to record impairment charges for these assets . the goodwill impairment test is a two-step impairment test . in the first step , the company compares the fair value of each reporting unit to its carrying value . the company determines the fair value of its reporting units using a combination of a discounted cash flow and a market value approach . the company 's estimates may differ from actual results due to , among other things , economic conditions , changes to its business models , or changes in operating performance . significant differences between these estimates and actual results could result in future impairment charges and could materially affect the company 's future financial results . if the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that reporting unit , goodwill is not impaired and the company is not required to perform further testing . if the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit , then the company must perform the second step in order to determine the implied fair value of the reporting unit 's goodwill and compare it to the carrying value of the reporting unit 's goodwill . the activities in the second step include valuing the tangible and intangible assets and liabilities of the impaired reporting unit based on their fair value and determining the fair value of the impaired reporting unit 's goodwill based upon the residual of the aggregate identified tangible and intangible assets and liabilities . as of january 28 , 2017 , the company had no reporting unit ( s ) at risk for goodwill impairment . 30 intangible assets that have been determined to have indefinite lives are also not subject to amortization and are reviewed at least annually for potential impairment , or more frequently as mentioned above . the fair value of the company 's intangible assets are estimated and compared to their carrying value . the company estimates the fair value of these intangible assets based on an income approach using the relief-from-royalty method . this methodology assumes that , in lieu of ownership , a third party would be willing to pay a royalty in order to exploit the related benefits of these types of assets . this approach is dependent on a number of factors , including estimates of future sales growth and trends , royalty rates in the category of intellectual property , discount rates and other variables . if actual results are not consistent with our estimates and assumptions used in estimating fair value , the company may be exposed to losses that could be material . the company does not believe there is reasonable likelihood that there will be a material change in the estimates or assumptions used to calculate fair value . the company recognizes an impairment charge when the estimated fair value of the intangible asset is less than the carrying value . impairment of long-lived assets and closed store reserves the company reviews long-lived assets whenever events and circumstances indicate that the carrying value of these assets may not be recoverable based on estimated undiscounted future cash flows . assets are reviewed at the lowest level for which cash flows can be identified , which is the store level . the company uses an income approach to determine the fair value of individual store locations , which requires discounting projected future cash flows over its remaining lease term . when determining the stream of projected future cash flows associated with an individual store location , the company makes assumptions , incorporating local market conditions , about key store variables including sales growth rates , gross margin and controllable expenses , such as store payroll . an impairment loss is recognized when the carrying amount of the store location is not recoverable and exceeds its fair value . based on an analysis of current and future store performance , management periodically evaluates the need to close underperforming stores . reserves are established for the present value of any remaining operating lease obligations , net of estimated sublease income , when the company ceases to use the location . if the timing or amount of actual sublease income differs from estimated amounts , this could result in an increase or decrease in the related reserves . self-insurance the company is self-insured for certain losses related to health , workers ' compensation and general liability insurance , although we maintain stop-loss coverage with third party insurers to limit our liability exposure . liabilities associated with these losses are estimated in part by considering

there are three key performance indicators used in the hotel industry to measure room revenues : occupancy , or the number of rooms sold , usually expressed as a percentage of total rooms available ; average daily rate or adr , which is total room revenue divided by the number of rooms sold ; and revenue per available room or revpar , which is the room revenue divided by the total number of available rooms . results of operations comparison of year ended december 31 , 2011 to year ended december 31 , 2010 the following table illustrates the key operating metrics for the years ended december 31 , 2011 and 2010 for our nine wholly-owned properties ( “actual properties” ) . replace_table_token_9_th revenue . total revenue for the year ended december 31 , 2011 was approximately $ 81.2 million , an increase of approximately $ 3.8 million or 4.9 % from total revenue for the year ended december 31 , 2010 of approximately $ 77.4 million . increases in revenue at the hilton wilmington riverside , the sheraton louisville riverside and the crowne plaza tampa westshore offset slight decreases in revenue at our properties in laurel , maryland and raleigh , north carolina . room revenues at our properties for the year ended december 31 , 2011 increased approximately $ 3.1 million or 5.8 % to approximately $ 56.2 million compared to room revenues for the year ended december 31 , 2010 of approximately $ 53.1 million . the increase in room revenue was mostly attributable to increases in occupancy at our recently renovated properties in jeffersonville , indiana ; hampton , virginia ; and tampa , florida . we expect occupancy and adr to increase as demand continues to strengthen as the overall economy continues to improve . food and beverage revenues at our properties for the year ended december 31 , 2011 increased approximately $ 0.6 million or 2.9 % to approximately $ 20.5 million compared to food and beverage revenues for the year ended december 31 , 2010 of approximately $ 19.9 million . most of the increase in food and beverage revenue was attributable to increased revenues at the crowne plaza tampa westshore and the hilton wilmington riverside . 41 other operating revenues for the year ended december 31 , 2011 increased approximately $ 0.1 million or 2.6 % to approximately $ 4.5 million compared to other operating revenues for the year ended december 31 , 2010 of approximately $ 4.4 million . higher guaranteed no-show fees offset decreases in pay-per-view movie revenue . hotel operating expenses . hotel operating expenses , which consist of room expenses , food and beverage expenses , other direct expenses , indirect expenses , and management fees , increased approximately $ 2.7 million or 4.6 % for the year ended december 31 , 2011 to approximately $ 61.8 million compared to hotel operating expenses for the year ended december 31 , 2010 of approximately $ 59.1 million . increases in expenses that vary directly with increases in revenue , such as food and beverage expense , management fees and franchise fees , accounted for approximately half the increase in hotel operating expenses . rooms expense at our properties for the year ended december 31 , 2011 increased approximately $ 0.7 million or 5.0 % to approximately $ 15.8 million compared to rooms expense of approximately $ 15.1 million for the year ended december 31 , 2010. the increase in rooms expense was directly related to the 5.8 % increase in room revenue . food and beverage expenses at our properties for the year ended december 31 , 2011 increased approximately $ 0.4 million or 2.8 % to approximately $ 13.6 million compared to food and beverage expense of approximately $ 13.2 million for the year ended december 31 , 2010. the increase in food and beverage expense was generally attributable to the 2.9 % increase in food and beverage revenue . indirect expenses at our properties for the year ended december 31 , 2011 increased approximately $ 1.8 million or 5.9 % to approximately $ 31.8 million compared to indirect expenses of approximately $ 30.0 million for the year ended december 31 , 2010. sales and marketing costs , franchise fees , utilities , repairs and maintenance , insurance , management fees , real and personal property taxes as well as general and administrative costs at the property level are included in indirect expenses . most of the increase in indirect expenses related to expenses that increase proportionally with increases in occupancy and or revenue , including management fees , franchise fees and energy costs . depreciation and amortization . depreciation and amortization for the year ended december 31 , 2011 increased approximately $ 0.2 million or 2.3 % to approximately $ 8.7 million compared to depreciation and amortization expense of approximately $ 8.5 million for the year ended december 31 , 2010. we expect depreciation and amortization to remain at approximately this level for the current portfolio of hotels . corporate general and administrative . corporate general and administrative expenses for the year ended december 31 , 2011 increased approximately $ 0.6 million or 18.8 % to approximately $ 4.0 million compared to corporate general and administrative expenses of approximately $ 3.4 million for the year ended december 31 , 2010 due mostly to the charge in the third quarter for fees related to our aborted stock offering . interest expense . story_separator_special_tag replace_table_token_12_th in connection with the acquisition of our six initial hotel properties , we entered into tax indemnity agreements that require us to indemnify the contributors of our initial properties against tax liabilities in the event we sell those properties in a taxable transaction during a 10-year period . such indemnification obligations could result in aggregate payments of approximately $ 13.8 million . our obligations under the tax indemnity agreements may effectively preclude us from selling or disposing of certain of the initial hotels in taxable transactions or reducing our consolidated indebtedness below approximately $ 11.0 million . off balance sheet arrangements . through a joint venture with a carlyle subsidiary , we own a 25.0 % indirect , noncontrolling interest in an entity ( the “jv owner” ) that acquired the 311-room crowne plaza hollywood beach resort in hollywood , florida . we have the right to receive a pro rata share of operating surpluses and we have an obligation to fund our pro rata share of operating shortfalls . we also have the opportunity to earn an incentive participation in the net proceeds realized from the sale of the hotel based upon the achievement of certain overall investment returns , in addition to our pro rata share of net sale proceeds . the crowne plaza hollywood beach resort is leased to another entity ( the “joint venture lessee” ) in which we also own a 25.0 % indirect , noncontrolling interest . the acquisition of the property was funded in part by a mortgage loan in the amount of $ 57.6 million . the mortgage , which had an original two-year term maturing on august 1 , 2009 , was restructured on june 13 , 2008 so that the first $ 35.6 million bore interest at a rate of libor plus additional interest of 0.98 % . the remaining $ 22.0 million bore a rate of libor plus additional interest of 3.50 % . upon that restructure , a fourth entity , in which we own a 25.0 % indirect noncontrolling interest , purchased the $ 22.0 million junior participation for $ 19.0 million . the loan had been extended for one year and was modified in august 2010 to extend the maturity date to august 2014 , require monthly payments of interest at a rate of libor plus additional interest of 1.94 % and require annual principal payments of $ 0.5 million . in conjunction with the loan modification , the joint venture made an additional $ 1.5 million payment of principal and executed an interest-rate swap with a notional amount and maturity tied to the projected outstanding balance and maturity date of the loan . the crowne plaza hollywood beach resort secures the mortgage . we have provided limited guarantees to the lender with respect to this mortgage . carlyle owns a 75.0 % controlling interest in the jv owner , the joint venture lessee , the entity with the purchase option and the entity that held the junior participation . carlyle may elect to dispose of the crowne plaza hollywood beach without our consent . we account for our noncontrolling 25.0 % interest in all of these entities under the equity method of accounting . distributions to common stockholders . we have elected to be taxed as a reit commencing with our taxable year ending december 31 , 2004. to maintain qualification as a reit , we are required to make annual distributions to our stockholders of at least 90.0 % of our reit taxable income , ( excluding net capital gain , which 49 does not necessarily equal net income as calculated in accordance with generally accepted accounting principles ) . our ability to pay distributions to our stockholders will depend , in part , upon our receipt of distributions from our operating partnership which may depend upon receipt of lease payments with respect to our properties from our trs lessee , and in turn , upon the management of our properties by our hotel manager . distributions to our stockholders will generally be taxable to our stockholders as ordinary income ; however , because a portion of our investments will be equity ownership interests in hotels , which will result in depreciation and non-cash charges against our income , a portion of our distributions may constitute a tax-free return of capital . to the extent not inconsistent with maintaining our reit status , our trs lessee may retain any after-tax earnings . the amount , timing and frequency of distributions will be authorized by our board of directors and declared by us based upon a variety of factors deemed relevant by our directors , and no assurance can be given that our distribution policy will not change in the future . our ability to make distributions is constrained by the preferred stock instrument and the note agreement . while they permit the minimum distributions that allow us to maintain our status as a reit , they provide timing restrictions and conditions that must be met before such distributions can be made . provided certain additional conditions are satisfied , dividends in excess of the minimum amount may be made . inflation we generate revenues primarily from lease payments from our trs lessee and net income from the operations of our trs lessee . therefore , we rely primarily on the performance of the individual properties and the ability of our management company to increase revenues and to keep pace with inflation . operators of hotels , in general , possess the ability to adjust room rates daily to keep pace with inflation . however , competitive pressures at some or all of our hotels may limit the ability of our management company to raise room rates . our expenses , including hotel operating expenses , administrative expenses , real estate taxes and property and casualty insurance are subject to inflation . these expenses are expected to grow with the general rate of inflation

sources and uses of cash operating activities . our principal source of cash to meet our operating requirements , including distributions to unit holders and stockholders as well as repayments of indebtedness , is the operations of our hotels . cash flow provided by operating activities for the year ended december 31 , 2011 was approximately $ 7.6 million . we expect that the net cash provided by operations will be adequate to fund the company 's operating requirements , monthly and quarterly scheduled payments of principal and interest ( excluding any balloon payments due upon maturity of a debt ) and the payment of dividends in accordance with federal income tax laws which require us make annual distributions to our stockholders of at least 90.0 % of our reit taxable income , excluding net capital gains . investing activities . approximately $ 6.0 million was spent during the year ended december 31 , 2011 on renovations and capital improvements . financing activities . in april 2011 , we issued 25,000 shares of the preferred stock and a warrant to purchase shares of common stock for gross proceeds of $ 25.0 million , of which we used approximately $ 22.7 million to reduce our indebtedness on the credit facility . in august 2011 , we obtained an 18-month extension on the mortgage on the crowne plaza jacksonville repaying $ 4.0 million in principal which we obtained by accessing an equivalent amount of bridge financing via our agreement with essex equity high income joint investment vehicle , llc allowing us to borrow up to $ 10.0 million ( the “bridge financing” ) at a fixed rate of 9.25 % . between august 2011 and december 2011 , we obtained mortgages on the holiday inn laurel , doubletree by hilton brownstone—university and sheraton louisville riverside totaling $ 27.7 million and used the proceeds to repay a portion of the balance on the credit facility .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```sources and uses of cash operating activities . our principal source of cash to meet our operating requirements , including distributions to unit holders and stockholders as well as repayments of indebtedness , is the operations of our hotels . cash flow provided by operating activities for the year ended december 31 , 2011 was approximately $ 7.6 million . we expect that the net cash provided by operations will be adequate to fund the company 's operating requirements , monthly and quarterly scheduled payments of principal and interest ( excluding any balloon payments due upon maturity of a debt ) and the payment of dividends in accordance with federal income tax laws which require us make annual distributions to our stockholders of at least 90.0 % of our reit taxable income , excluding net capital gains . investing activities . approximately $ 6.0 million was spent during the year ended december 31 , 2011 on renovations and capital improvements . financing activities . in april 2011 , we issued 25,000 shares of the preferred stock and a warrant to purchase shares of common stock for gross proceeds of $ 25.0 million , of which we used approximately $ 22.7 million to reduce our indebtedness on the credit facility . in august 2011 , we obtained an 18-month extension on the mortgage on the crowne plaza jacksonville repaying $ 4.0 million in principal which we obtained by accessing an equivalent amount of bridge financing via our agreement with essex equity high income joint investment vehicle , llc allowing us to borrow up to $ 10.0 million ( the “bridge financing” ) at a fixed rate of 9.25 % . between august 2011 and december 2011 , we obtained mortgages on the holiday inn laurel , doubletree by hilton brownstone—university and sheraton louisville riverside totaling $ 27.7 million and used the proceeds to repay a portion of the balance on the credit facility . ``` Suspicious Activity Report : there are three key performance indicators used in the hotel industry to measure room revenues : occupancy , or the number of rooms sold , usually expressed as a percentage of total rooms available ; average daily rate or adr , which is total room revenue divided by the number of rooms sold ; and revenue per available room or revpar , which is the room revenue divided by the total number of available rooms . results of operations comparison of year ended december 31 , 2011 to year ended december 31 , 2010 the following table illustrates the key operating metrics for the years ended december 31 , 2011 and 2010 for our nine wholly-owned properties ( “actual properties” ) . replace_table_token_9_th revenue . total revenue for the year ended december 31 , 2011 was approximately $ 81.2 million , an increase of approximately $ 3.8 million or 4.9 % from total revenue for the year ended december 31 , 2010 of approximately $ 77.4 million . increases in revenue at the hilton wilmington riverside , the sheraton louisville riverside and the crowne plaza tampa westshore offset slight decreases in revenue at our properties in laurel , maryland and raleigh , north carolina . room revenues at our properties for the year ended december 31 , 2011 increased approximately $ 3.1 million or 5.8 % to approximately $ 56.2 million compared to room revenues for the year ended december 31 , 2010 of approximately $ 53.1 million . the increase in room revenue was mostly attributable to increases in occupancy at our recently renovated properties in jeffersonville , indiana ; hampton , virginia ; and tampa , florida . we expect occupancy and adr to increase as demand continues to strengthen as the overall economy continues to improve . food and beverage revenues at our properties for the year ended december 31 , 2011 increased approximately $ 0.6 million or 2.9 % to approximately $ 20.5 million compared to food and beverage revenues for the year ended december 31 , 2010 of approximately $ 19.9 million . most of the increase in food and beverage revenue was attributable to increased revenues at the crowne plaza tampa westshore and the hilton wilmington riverside . 41 other operating revenues for the year ended december 31 , 2011 increased approximately $ 0.1 million or 2.6 % to approximately $ 4.5 million compared to other operating revenues for the year ended december 31 , 2010 of approximately $ 4.4 million . higher guaranteed no-show fees offset decreases in pay-per-view movie revenue . hotel operating expenses . hotel operating expenses , which consist of room expenses , food and beverage expenses , other direct expenses , indirect expenses , and management fees , increased approximately $ 2.7 million or 4.6 % for the year ended december 31 , 2011 to approximately $ 61.8 million compared to hotel operating expenses for the year ended december 31 , 2010 of approximately $ 59.1 million . increases in expenses that vary directly with increases in revenue , such as food and beverage expense , management fees and franchise fees , accounted for approximately half the increase in hotel operating expenses . rooms expense at our properties for the year ended december 31 , 2011 increased approximately $ 0.7 million or 5.0 % to approximately $ 15.8 million compared to rooms expense of approximately $ 15.1 million for the year ended december 31 , 2010. the increase in rooms expense was directly related to the 5.8 % increase in room revenue . food and beverage expenses at our properties for the year ended december 31 , 2011 increased approximately $ 0.4 million or 2.8 % to approximately $ 13.6 million compared to food and beverage expense of approximately $ 13.2 million for the year ended december 31 , 2010. the increase in food and beverage expense was generally attributable to the 2.9 % increase in food and beverage revenue . indirect expenses at our properties for the year ended december 31 , 2011 increased approximately $ 1.8 million or 5.9 % to approximately $ 31.8 million compared to indirect expenses of approximately $ 30.0 million for the year ended december 31 , 2010. sales and marketing costs , franchise fees , utilities , repairs and maintenance , insurance , management fees , real and personal property taxes as well as general and administrative costs at the property level are included in indirect expenses . most of the increase in indirect expenses related to expenses that increase proportionally with increases in occupancy and or revenue , including management fees , franchise fees and energy costs . depreciation and amortization . depreciation and amortization for the year ended december 31 , 2011 increased approximately $ 0.2 million or 2.3 % to approximately $ 8.7 million compared to depreciation and amortization expense of approximately $ 8.5 million for the year ended december 31 , 2010. we expect depreciation and amortization to remain at approximately this level for the current portfolio of hotels . corporate general and administrative . corporate general and administrative expenses for the year ended december 31 , 2011 increased approximately $ 0.6 million or 18.8 % to approximately $ 4.0 million compared to corporate general and administrative expenses of approximately $ 3.4 million for the year ended december 31 , 2010 due mostly to the charge in the third quarter for fees related to our aborted stock offering . interest expense . story_separator_special_tag replace_table_token_12_th in connection with the acquisition of our six initial hotel properties , we entered into tax indemnity agreements that require us to indemnify the contributors of our initial properties against tax liabilities in the event we sell those properties in a taxable transaction during a 10-year period . such indemnification obligations could result in aggregate payments of approximately $ 13.8 million . our obligations under the tax indemnity agreements may effectively preclude us from selling or disposing of certain of the initial hotels in taxable transactions or reducing our consolidated indebtedness below approximately $ 11.0 million . off balance sheet arrangements . through a joint venture with a carlyle subsidiary , we own a 25.0 % indirect , noncontrolling interest in an entity ( the “jv owner” ) that acquired the 311-room crowne plaza hollywood beach resort in hollywood , florida . we have the right to receive a pro rata share of operating surpluses and we have an obligation to fund our pro rata share of operating shortfalls . we also have the opportunity to earn an incentive participation in the net proceeds realized from the sale of the hotel based upon the achievement of certain overall investment returns , in addition to our pro rata share of net sale proceeds . the crowne plaza hollywood beach resort is leased to another entity ( the “joint venture lessee” ) in which we also own a 25.0 % indirect , noncontrolling interest . the acquisition of the property was funded in part by a mortgage loan in the amount of $ 57.6 million . the mortgage , which had an original two-year term maturing on august 1 , 2009 , was restructured on june 13 , 2008 so that the first $ 35.6 million bore interest at a rate of libor plus additional interest of 0.98 % . the remaining $ 22.0 million bore a rate of libor plus additional interest of 3.50 % . upon that restructure , a fourth entity , in which we own a 25.0 % indirect noncontrolling interest , purchased the $ 22.0 million junior participation for $ 19.0 million . the loan had been extended for one year and was modified in august 2010 to extend the maturity date to august 2014 , require monthly payments of interest at a rate of libor plus additional interest of 1.94 % and require annual principal payments of $ 0.5 million . in conjunction with the loan modification , the joint venture made an additional $ 1.5 million payment of principal and executed an interest-rate swap with a notional amount and maturity tied to the projected outstanding balance and maturity date of the loan . the crowne plaza hollywood beach resort secures the mortgage . we have provided limited guarantees to the lender with respect to this mortgage . carlyle owns a 75.0 % controlling interest in the jv owner , the joint venture lessee , the entity with the purchase option and the entity that held the junior participation . carlyle may elect to dispose of the crowne plaza hollywood beach without our consent . we account for our noncontrolling 25.0 % interest in all of these entities under the equity method of accounting . distributions to common stockholders . we have elected to be taxed as a reit commencing with our taxable year ending december 31 , 2004. to maintain qualification as a reit , we are required to make annual distributions to our stockholders of at least 90.0 % of our reit taxable income , ( excluding net capital gain , which 49 does not necessarily equal net income as calculated in accordance with generally accepted accounting principles ) . our ability to pay distributions to our stockholders will depend , in part , upon our receipt of distributions from our operating partnership which may depend upon receipt of lease payments with respect to our properties from our trs lessee , and in turn , upon the management of our properties by our hotel manager . distributions to our stockholders will generally be taxable to our stockholders as ordinary income ; however , because a portion of our investments will be equity ownership interests in hotels , which will result in depreciation and non-cash charges against our income , a portion of our distributions may constitute a tax-free return of capital . to the extent not inconsistent with maintaining our reit status , our trs lessee may retain any after-tax earnings . the amount , timing and frequency of distributions will be authorized by our board of directors and declared by us based upon a variety of factors deemed relevant by our directors , and no assurance can be given that our distribution policy will not change in the future . our ability to make distributions is constrained by the preferred stock instrument and the note agreement . while they permit the minimum distributions that allow us to maintain our status as a reit , they provide timing restrictions and conditions that must be met before such distributions can be made . provided certain additional conditions are satisfied , dividends in excess of the minimum amount may be made . inflation we generate revenues primarily from lease payments from our trs lessee and net income from the operations of our trs lessee . therefore , we rely primarily on the performance of the individual properties and the ability of our management company to increase revenues and to keep pace with inflation . operators of hotels , in general , possess the ability to adjust room rates daily to keep pace with inflation . however , competitive pressures at some or all of our hotels may limit the ability of our management company to raise room rates . our expenses , including hotel operating expenses , administrative expenses , real estate taxes and property and casualty insurance are subject to inflation . these expenses are expected to grow with the general rate of inflation

table 1 – average balances and tax-equivalent interest rates replace_table_token_21_th ( 1 ) interest on nontaxable securities and loans has been adjusted to a fully tax-equivalent basis to facilitate comparison to the taxable interest-earning assets . the adjustment uses an incremental tax rate of 34 % for the years presented . ( 2 ) interest on loans included net origination fees charged on loans of approximately $ 873,000 , $ 909,000 , and $ 885,000 in 2014 , 2013 , and 2012 , respectively . ( 3 ) interest on taxable securities includes dividends on federal home loan bank and federal reserve bank stock . ( 4 ) noninterest-earning assets include loans on a nonaccrual status , which averaged approximately $ 3,613,000 , $ 2,132,000 , and $ 4,364,000 in 2014 , 2013 , and 2012 , respectively . 18 table 2 – changes in tax-equivalent net interest income replace_table_token_22_th ( 1 ) the volume variance is computed as the change in volume ( average balance ) multiplied by the previous year 's interest rate . the rate variance is computed as the change in interest rate multiplied by the previous year 's volume ( average balance ) . the change in interest due to both volume and rate has been allocated to the volume and rate changes in proportion to the relationship of the absolute dollar amounts of the change in each . ( 2 ) interest on tax-exempt securities and loans has been adjusted to a fully tax-equivalent basis using an incremental tax rate of 34 % for the years presented . net interest income as shown in tables 1 and 2 , tax-equivalent net interest income increased $ 264,000 in 2014 compared to 2013. the increase was attributed to $ 25.6 million in interest-earning assets and a decrease of 8 basis points on interest-bearing liabilities , partially offset by a 23 basis point decline in the average rate on interest-earning assets . choiceone 's net interest spread declined 15 basis points in 2014 compared to 2013 as growth of average interest-earning assets was offset by the compression of net interest margin . the average balance of loans increased $ 17.6 million in 2014 compared to 2013 . $ 19.9 million of growth came from loans to businesses in choiceone 's markets as calling efforts were emphasized in 2014. consumer loans increased $ 1.0 million due to marketing and choiceone 's referral program . residential mortgage loans declined $ 3.3 million as some loans held in portfolio were refinanced during 2014 and sold in the secondary market . offsetting the loan growth with a 28 basis point decrease in the average rate earned on loans , interest income on loans declined $ 39,000 in 2014 compared to the prior year . the average balance of total securities increased by $ 8.7 million in 2014 compared to 2013 as securities were purchased to provide earning assets growth . this growth in the average balance was partially offset by a lower average rate earned on securities , which caused interest income from securities to increase $ 38,000 in 2014 compared to the prior year . the average balance of other interest-earning assets decreased $ 652,000 as excess funds were deployed toward loan and securities growth , resulting in a decrease of $ 3,000 in interest income for 2014 compared to 2013. the average balance of interest-bearing demand deposits increased $ 5.9 million in 2014 compared to 2013. the effect of this increase , partially offset by a 4 basis point decline in the average rate paid , caused interest expense to be $ 40,000 lower in 2014 than in the prior year . the effect of $ 2.4 million of growth in average savings deposits caused a $ 1,000 increase in interest expense in 2014 compared to the prior year . the average balance of certificates of deposit was $ 11.7 million lower in 2014 than in the prior year . the average balance decrease plus the effect of a 13 basis point decline in the average rate paid caused interest expense on certificates of deposit to fall $ 247,000 in 2014 compared to 2013. a $ 7.1 million increase in the average balance of federal home loan bank advances , partially offset by an 18 basis point decrease in the average rate paid , caused interest expense to increase $ 18,000 in 2014 compared to the prior year . the growth experienced in non-interest bearing demand deposits and savings deposits was primarily due to depositors choosing the liquidity and safety afforded by this type of deposit as compared to certificates of deposit or nonbank investments . choiceone 's net interest income spread was 3.81 % ( shown in table 1 ) for 2014 and 3.96 % for 2013. the average yield received on interest-earning assets in 2014 decreased 23 basis points to 4.14 % while the average rate paid on interest-bearing liabilities in 2014 fell 8 basis points to 0.33 % . the decline in general market interest rates in both 2013 and 2014 caused the reduction in rates for both assets and liabilities in the two time periods . as shown in tables 1 and 2 , tax-equivalent net interest income decreased $ 65,000 in 2013 compared to 2012. the decrease was attributed to a 31 basis point decline in the average rate on interest earning assets offset by a 31 basis point decline in the average rate on interest-bearing liabilities , . choiceone 's net interest spread remained constant in 2013 compared to 2012 as growth of $ 4.3 million in average interest-earning assets were offset by a decline of $ 9.5 million in average interest-bearing liabilities . 19 the average balance of loans increased $ 5.2 million in 2013 compared to 2012 . story_separator_special_tag if local deposit growth is insufficient to support asset growth , management believes that advances from the fhlb , repurchase agreements and brokered certificates of deposit can address corresponding funding needs . shareholders ' equity total shareholders ' equity increased $ 4.6 million from december 31 , 2013 to december 31 , 2014. the growth in equity resulted from the retention of earnings in 2014 as net income exceeded dividends paid by $ 3.8 million . other comprehensive income increased $ 925,000 in 2014 primarily due to declining interest rates affecting unrealized gains on available for sale securities . note 20 to the consolidated financial statements presents regulatory capital information for the bank at the end of 2014 and 2013. management will monitor these capital ratios closely during 2015 as they relate to asset growth and earnings retention . choiceone 's board of directors and management do not plan to allow capital to decrease below those levels necessary to be considered “ well capitalized ” by regulatory guidelines . at december 31 , 2014 , the bank was categorized as “ well-capitalized . ” on july 3 , 2013 , the fdic board of directors approved the regulatory capital interim final rule , implementing basel iii . this rule redefines tier 1 capital as two components ( common equity tier 1 and additional tier 1 ) , creates a new capital ratio ( common equity tier 1 risk-based capital ratio ) and implements a capital conservation buffer . it also revises the prompt corrective action thresholds and makes changes to risk weights for certain assets and off-balance-sheet exposures . banks are required to transition into the new rule beginning on january 1 , 2015. based on choiceone 's capital levels and balance sheet composition at december 31 , 2014 , management believes implementation of the new rule will have no material impact on choiceone 's capital needs . table 4 – contractual obligations the following table discloses information regarding the maturity of choiceone 's contractual obligations at december 31 , 2014 : replace_table_token_29_th 25 story_separator_special_tag management believes the accounting estimate related to loan servicing rights is a “ critical accounting estimate ” because ( 1 ) the estimate is highly susceptible to change from period to period because of significant changes within long-term interest rates affecting the prepayment speeds for current loans being serviced and ( 2 ) the impact of recognizing an impairment loss could have a material effect on choiceone 's net income . management has obtained a third-party valuation of its loan servicing rights to corroborate its current carrying value at the end of each reporting period . 26 goodwill generally accepted accounting principles require that the fair values of the assets and liabilities of an acquired entity be recorded at their fair value on the date of acquisition . the fair values are determined using both internal computations and information obtained from outside parties when deemed necessary . the net difference between the price paid for the acquired company and the net value of its balance sheet is recorded as goodwill . accounting principles also require that goodwill be evaluated for impairment on an annual basis or more frequently whenever events or changes in circumstances indicate that the carrying value may not be recoverable . under recently issued accounting pronouncements , choiceone is permitted to first perform a qualitative assessment to determine whether it is more likely than not ( that is , a likelihood of more than 50 percent ) that the fair value of equity is less than its carrying value . if the conclusion is that it is more likely than not that the fair value of equity is more than its carrying value , no further testing in the form of a quantitative assessment is necessary . if the conclusion is that it is more likely than not that the fair value of equity is less than its carrying value , then a two-step quantitative assessment test is performed to identify any potential goodwill impairment . prior to 2013 , choiceone was required to perform a quantitative assessment and engaged an outside consulting firm to assist in the goodwill impairment analysis . the following steps were used in the valuation : determination of the reporting unit , determination of the appropriate standard of value , determination of the appropriate level of value , calculation of fair value , and comparison of the fair value computed to the equity carrying value . it was determined that the relevant reporting unit to be valued was choiceone bank . the standard of value used in the valuation was fair value as determined by generally accepted accounting principles . the appropriate level of value was determined to be the controlling interest level . the appraisal methodology used to calculate the fair value included the following valuation approaches : income approach : a discounted cash flow value was calculated based on earnings capacity . the discount rate used for the calculation was 12.50 % . the growth assumption for assets was 1.8 % for the first year and 2.0 % in subsequent years . in addition , it was assumed that cost savings of 20 % of noninterest expense would occur as a result of synergies and cost reductions from a change in control . market approach : the analysis was based on price-to-earnings multiples , price-to-tangible book value ratios , and core deposit premiums for selected bank sale transactions . the asset approach was also an approach reviewed , but it was not used in determining the fair value since it did not render a control level indication of value . the results from the valuation approaches were used to calculate an estimate of the fair value of choiceone 's equity . the fair value was compared to the carrying value of equity to determine whether the step 1 test under generally accepted accounting principles that govern the valuation of goodwill was passed . the goodwill

liquidity and interest rate risk net cash from operating activities was $ 7.5 million for 2014 compared to $ 10.4 million for 2013. lower net proceeds from loan sales was the main reason for the decrease . cash used in investing activities was $ 38.7 million in 2014 compared to $ 13.4 million in 2013. the change was caused by a higher level of loan growth in 2014 than in 2013 and the purchase of additional bank owned life insurance . cash flows from financing activities were $ 27.4 million in 2014 compared to $ 4.5 million in the prior year . the effect of growth in deposits in 2014 in contrast to a decline in 2013 plus a higher level of net proceeds from federal home loan bank advances was partially offset by a lower level of growth in repurchase agreements in 2014 than in the prior year . choiceone 's primary market risk exposure occurs in the form of interest rate risk . liquidity risk also can have an impact but to a lesser extent . choiceone 's business is transacted in u.s. dollars with no foreign exchange risk exposure . agricultural loans comprise a relatively small portion of choiceone 's total assets . management believes that choiceone 's exposure to changes in commodity prices is insignificant . management believes that the current level of liquidity is sufficient to meet the bank 's normal operating needs . this belief is based upon the availability of deposits from both the local and national markets , maturities of securities , normal loan repayments , income retention , federal funds purchased lines of credit from correspondent banks , and advances available from the fhlb . liquidity risk deals with choiceone 's ability to meet its cash flow requirements . these requirements include depositors desiring to withdraw funds and borrowers seeking credit . relatively short-term liquid funds exist in the form of lines of credit to purchase federal funds at four of the bank 's correspondent banks .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and interest rate risk net cash from operating activities was $ 7.5 million for 2014 compared to $ 10.4 million for 2013. lower net proceeds from loan sales was the main reason for the decrease . cash used in investing activities was $ 38.7 million in 2014 compared to $ 13.4 million in 2013. the change was caused by a higher level of loan growth in 2014 than in 2013 and the purchase of additional bank owned life insurance . cash flows from financing activities were $ 27.4 million in 2014 compared to $ 4.5 million in the prior year . the effect of growth in deposits in 2014 in contrast to a decline in 2013 plus a higher level of net proceeds from federal home loan bank advances was partially offset by a lower level of growth in repurchase agreements in 2014 than in the prior year . choiceone 's primary market risk exposure occurs in the form of interest rate risk . liquidity risk also can have an impact but to a lesser extent . choiceone 's business is transacted in u.s. dollars with no foreign exchange risk exposure . agricultural loans comprise a relatively small portion of choiceone 's total assets . management believes that choiceone 's exposure to changes in commodity prices is insignificant . management believes that the current level of liquidity is sufficient to meet the bank 's normal operating needs . this belief is based upon the availability of deposits from both the local and national markets , maturities of securities , normal loan repayments , income retention , federal funds purchased lines of credit from correspondent banks , and advances available from the fhlb . liquidity risk deals with choiceone 's ability to meet its cash flow requirements . these requirements include depositors desiring to withdraw funds and borrowers seeking credit . relatively short-term liquid funds exist in the form of lines of credit to purchase federal funds at four of the bank 's correspondent banks . ``` Suspicious Activity Report : table 1 – average balances and tax-equivalent interest rates replace_table_token_21_th ( 1 ) interest on nontaxable securities and loans has been adjusted to a fully tax-equivalent basis to facilitate comparison to the taxable interest-earning assets . the adjustment uses an incremental tax rate of 34 % for the years presented . ( 2 ) interest on loans included net origination fees charged on loans of approximately $ 873,000 , $ 909,000 , and $ 885,000 in 2014 , 2013 , and 2012 , respectively . ( 3 ) interest on taxable securities includes dividends on federal home loan bank and federal reserve bank stock . ( 4 ) noninterest-earning assets include loans on a nonaccrual status , which averaged approximately $ 3,613,000 , $ 2,132,000 , and $ 4,364,000 in 2014 , 2013 , and 2012 , respectively . 18 table 2 – changes in tax-equivalent net interest income replace_table_token_22_th ( 1 ) the volume variance is computed as the change in volume ( average balance ) multiplied by the previous year 's interest rate . the rate variance is computed as the change in interest rate multiplied by the previous year 's volume ( average balance ) . the change in interest due to both volume and rate has been allocated to the volume and rate changes in proportion to the relationship of the absolute dollar amounts of the change in each . ( 2 ) interest on tax-exempt securities and loans has been adjusted to a fully tax-equivalent basis using an incremental tax rate of 34 % for the years presented . net interest income as shown in tables 1 and 2 , tax-equivalent net interest income increased $ 264,000 in 2014 compared to 2013. the increase was attributed to $ 25.6 million in interest-earning assets and a decrease of 8 basis points on interest-bearing liabilities , partially offset by a 23 basis point decline in the average rate on interest-earning assets . choiceone 's net interest spread declined 15 basis points in 2014 compared to 2013 as growth of average interest-earning assets was offset by the compression of net interest margin . the average balance of loans increased $ 17.6 million in 2014 compared to 2013 . $ 19.9 million of growth came from loans to businesses in choiceone 's markets as calling efforts were emphasized in 2014. consumer loans increased $ 1.0 million due to marketing and choiceone 's referral program . residential mortgage loans declined $ 3.3 million as some loans held in portfolio were refinanced during 2014 and sold in the secondary market . offsetting the loan growth with a 28 basis point decrease in the average rate earned on loans , interest income on loans declined $ 39,000 in 2014 compared to the prior year . the average balance of total securities increased by $ 8.7 million in 2014 compared to 2013 as securities were purchased to provide earning assets growth . this growth in the average balance was partially offset by a lower average rate earned on securities , which caused interest income from securities to increase $ 38,000 in 2014 compared to the prior year . the average balance of other interest-earning assets decreased $ 652,000 as excess funds were deployed toward loan and securities growth , resulting in a decrease of $ 3,000 in interest income for 2014 compared to 2013. the average balance of interest-bearing demand deposits increased $ 5.9 million in 2014 compared to 2013. the effect of this increase , partially offset by a 4 basis point decline in the average rate paid , caused interest expense to be $ 40,000 lower in 2014 than in the prior year . the effect of $ 2.4 million of growth in average savings deposits caused a $ 1,000 increase in interest expense in 2014 compared to the prior year . the average balance of certificates of deposit was $ 11.7 million lower in 2014 than in the prior year . the average balance decrease plus the effect of a 13 basis point decline in the average rate paid caused interest expense on certificates of deposit to fall $ 247,000 in 2014 compared to 2013. a $ 7.1 million increase in the average balance of federal home loan bank advances , partially offset by an 18 basis point decrease in the average rate paid , caused interest expense to increase $ 18,000 in 2014 compared to the prior year . the growth experienced in non-interest bearing demand deposits and savings deposits was primarily due to depositors choosing the liquidity and safety afforded by this type of deposit as compared to certificates of deposit or nonbank investments . choiceone 's net interest income spread was 3.81 % ( shown in table 1 ) for 2014 and 3.96 % for 2013. the average yield received on interest-earning assets in 2014 decreased 23 basis points to 4.14 % while the average rate paid on interest-bearing liabilities in 2014 fell 8 basis points to 0.33 % . the decline in general market interest rates in both 2013 and 2014 caused the reduction in rates for both assets and liabilities in the two time periods . as shown in tables 1 and 2 , tax-equivalent net interest income decreased $ 65,000 in 2013 compared to 2012. the decrease was attributed to a 31 basis point decline in the average rate on interest earning assets offset by a 31 basis point decline in the average rate on interest-bearing liabilities , . choiceone 's net interest spread remained constant in 2013 compared to 2012 as growth of $ 4.3 million in average interest-earning assets were offset by a decline of $ 9.5 million in average interest-bearing liabilities . 19 the average balance of loans increased $ 5.2 million in 2013 compared to 2012 . story_separator_special_tag if local deposit growth is insufficient to support asset growth , management believes that advances from the fhlb , repurchase agreements and brokered certificates of deposit can address corresponding funding needs . shareholders ' equity total shareholders ' equity increased $ 4.6 million from december 31 , 2013 to december 31 , 2014. the growth in equity resulted from the retention of earnings in 2014 as net income exceeded dividends paid by $ 3.8 million . other comprehensive income increased $ 925,000 in 2014 primarily due to declining interest rates affecting unrealized gains on available for sale securities . note 20 to the consolidated financial statements presents regulatory capital information for the bank at the end of 2014 and 2013. management will monitor these capital ratios closely during 2015 as they relate to asset growth and earnings retention . choiceone 's board of directors and management do not plan to allow capital to decrease below those levels necessary to be considered “ well capitalized ” by regulatory guidelines . at december 31 , 2014 , the bank was categorized as “ well-capitalized . ” on july 3 , 2013 , the fdic board of directors approved the regulatory capital interim final rule , implementing basel iii . this rule redefines tier 1 capital as two components ( common equity tier 1 and additional tier 1 ) , creates a new capital ratio ( common equity tier 1 risk-based capital ratio ) and implements a capital conservation buffer . it also revises the prompt corrective action thresholds and makes changes to risk weights for certain assets and off-balance-sheet exposures . banks are required to transition into the new rule beginning on january 1 , 2015. based on choiceone 's capital levels and balance sheet composition at december 31 , 2014 , management believes implementation of the new rule will have no material impact on choiceone 's capital needs . table 4 – contractual obligations the following table discloses information regarding the maturity of choiceone 's contractual obligations at december 31 , 2014 : replace_table_token_29_th 25 story_separator_special_tag management believes the accounting estimate related to loan servicing rights is a “ critical accounting estimate ” because ( 1 ) the estimate is highly susceptible to change from period to period because of significant changes within long-term interest rates affecting the prepayment speeds for current loans being serviced and ( 2 ) the impact of recognizing an impairment loss could have a material effect on choiceone 's net income . management has obtained a third-party valuation of its loan servicing rights to corroborate its current carrying value at the end of each reporting period . 26 goodwill generally accepted accounting principles require that the fair values of the assets and liabilities of an acquired entity be recorded at their fair value on the date of acquisition . the fair values are determined using both internal computations and information obtained from outside parties when deemed necessary . the net difference between the price paid for the acquired company and the net value of its balance sheet is recorded as goodwill . accounting principles also require that goodwill be evaluated for impairment on an annual basis or more frequently whenever events or changes in circumstances indicate that the carrying value may not be recoverable . under recently issued accounting pronouncements , choiceone is permitted to first perform a qualitative assessment to determine whether it is more likely than not ( that is , a likelihood of more than 50 percent ) that the fair value of equity is less than its carrying value . if the conclusion is that it is more likely than not that the fair value of equity is more than its carrying value , no further testing in the form of a quantitative assessment is necessary . if the conclusion is that it is more likely than not that the fair value of equity is less than its carrying value , then a two-step quantitative assessment test is performed to identify any potential goodwill impairment . prior to 2013 , choiceone was required to perform a quantitative assessment and engaged an outside consulting firm to assist in the goodwill impairment analysis . the following steps were used in the valuation : determination of the reporting unit , determination of the appropriate standard of value , determination of the appropriate level of value , calculation of fair value , and comparison of the fair value computed to the equity carrying value . it was determined that the relevant reporting unit to be valued was choiceone bank . the standard of value used in the valuation was fair value as determined by generally accepted accounting principles . the appropriate level of value was determined to be the controlling interest level . the appraisal methodology used to calculate the fair value included the following valuation approaches : income approach : a discounted cash flow value was calculated based on earnings capacity . the discount rate used for the calculation was 12.50 % . the growth assumption for assets was 1.8 % for the first year and 2.0 % in subsequent years . in addition , it was assumed that cost savings of 20 % of noninterest expense would occur as a result of synergies and cost reductions from a change in control . market approach : the analysis was based on price-to-earnings multiples , price-to-tangible book value ratios , and core deposit premiums for selected bank sale transactions . the asset approach was also an approach reviewed , but it was not used in determining the fair value since it did not render a control level indication of value . the results from the valuation approaches were used to calculate an estimate of the fair value of choiceone 's equity . the fair value was compared to the carrying value of equity to determine whether the step 1 test under generally accepted accounting principles that govern the valuation of goodwill was passed . the goodwill

net sales are historically higher in the fourth quarter due primarily to the impact of our annual elfa® sale , which begins on december 24 th and traditionally runs into february . gross profit and gross margin gross profit is equal to our net sales less cost of sales . gross profit as a percentage of net sales is referred to as gross margin . cost of sales in our tcs segment includes the purchase cost of inventory less vendor rebates , in-bound freight , as well as inventory shrinkage . costs incurred to ship or deliver merchandise to customers , as well as direct installation costs , are also included in cost of sales in our tcs segment . elfa segment cost of sales from manufacturing operations includes costs associated with production , primarily material , wages , freight and other variable costs , and applicable manufacturing overhead . the components of our cost of sales may not be comparable to the components of cost of sales or similar measures by other retailers . as a result , data in this report regarding our gross profit and gross margin may not be comparable to similar data made available by other retailers . our gross profit is variable in nature and generally follows changes in net sales . our gross margin can be impacted by changes in the mix of products sold . for example , sales from our tcs segment typically provide a higher gross margin than sales to third parties from our elfa segment . gross margin for our tcs segment is also susceptible to foreign currency risk as purchases of elfa® products from our elfa segment are in swedish krona , while sales of these products are in u.s. dollars . we mitigate this risk through the use of forward contracts , whereby we hedge purchases of inventory by locking in foreign currency exchange rates in advance . similarly , gross margin for our elfa segment is susceptible to foreign currency risk as certain purchases of raw materials are transacted in currencies other than swedish krona , which is the functional currency of elfa . 41 selling , general and administrative expenses selling , general and administrative expenses include all operating costs not included in cost of sales , stock-based compensation , and pre-opening costs . for our tcs segment , these include all payroll and payroll-related expenses , marketing expenses , all occupancy expenses ( which include rent , real estate taxes , common area maintenance , utilities , telephone , property insurance , and repairs and maintenance ) , costs to ship product from the distribution center to our stores , and supplies expenses . we also incur costs for our distribution and corporate office operations . for our elfa segment , these include sales and marketing expenses , product development costs , and all expenses related to operations at headquarters . depreciation and amortization are excluded from both gross profit and selling , general and administrative expenses . selling , general and administrative expenses include both fixed and variable components and , therefore , is not directly correlated with net sales . the components of our selling , general and administrative expenses may not be comparable to the components of similar measures of other retailers . we expect that our selling , general and administrative expenses will increase in future periods with expected future store growth . pre-opening costs non-capital expenditures associated with opening new stores and relocating stores , including rent , marketing expenses , travel and relocation costs , and training costs , are expensed as incurred and are included in pre-opening costs in the consolidated statement of operations . comparable store sales a store is included in the comparable store sales calculation on the first day of the sixteenth full fiscal month following the store 's opening . when a store is relocated , we continue to consider sales from that store to be comparable store sales . net sales from our website and call center are also included in calculations of comparable store sales . the comparable store sales growth operating measure in a given period is based on merchandise orders placed in that period , which may not always reflect when the merchandise is delivered to the customer . comparable store sales allow us to evaluate how our retail store base is performing by measuring the change in period-over-period net sales in stores that have been open for fifteen months or more . the comparable store sales growth metric is an operating measure intended only as supplemental information and is not a substitute for net sales presented in accordance with generally accepted accounting principles . various factors affect comparable store sales , including : national and regional economic trends in the united states ; changes in our merchandise mix ; changes in pricing ; changes in timing of promotional events or holidays ; and weather . opening new stores is an important part of our growth strategy . as we continue to pursue our growth strategy , we anticipate that a significant percentage of our net sales will come from stores not included in our comparable store sales calculation . accordingly , comparable store sales is only one measure we use to assess the success of our growth strategy . 42 average ticket average ticket for all periods is calculated by dividing ( a ) sales of merchandise by our tcs segment for that period ( regardless of whether such sales are included in comparable store sales for such period ) by ( b ) the number of transactions for that period comprising such sales . historically , the average ticket for our elfa® department has been significantly higher than our overall average ticket . average ticket is an operating measure intended only as supplemental information and is not a substitute for net sales presented in accordance with generally accepted accounting principles . story_separator_special_tag gross profit and gross margin gross profit in fiscal 2013 increased by $ 24,172 , or 5.8 % , compared to fiscal 2012. the increase in gross profit was primarily the result of increased sales . the following table summarizes the gross margin for fiscal 2013 and fiscal 2012 by segment and total . the segment margins include the impact of inter-segment sales from the elfa segment to the tcs segment : replace_table_token_17_th tcs gross margin declined by 80 basis points , primarily due to the appreciation of the swedish krona against the u.s. dollar . elfa gross margin improved primarily due to lower direct material costs compared to the same time period in fiscal 2012. on a consolidated basis , gross margin remained consistent due to a larger percentage of net sales coming from the more profitable tcs segment . selling , general and administrative expenses selling , general and administrative expenses in fiscal 2013 increased by $ 23,174 , or 7.0 % , compared to the fiscal 2012. the increase in selling , general and administrative expenses was primarily due to the increase in sales . the following table summarizes selling , general and administrative expenses as a percentage of consolidated net sales for fiscal 2013 and fiscal 2012 : replace_table_token_18_th selling , general and administrative expenses increased by 50 basis points as a percentage of total net sales . the increase was primarily due to a larger percentage of net sales coming from the tcs segment , whose selling , general , and administrative expenses are higher as a percentage of net sales than the elfa segment . on a stand-alone basis , selling , general , and administrative expenses for the tcs segment and elfa segment remained consistent as a percentage of each segment 's net sales year over year . stock-based compensation we recorded $ 15,137 of stock-based compensation expense in fiscal 2013 , primarily related to stock options granted under the 2013 equity plan which immediately vested upon closing of our ipo , as well as the modification of outstanding stock options granted under the 2012 equity plan to provide for immediate vesting as of october 31 , 2013 . 50 pre-opening costs pre-opening costs decreased $ 890 , or 11.8 % in fiscal 2013 to $ 6,672 , as compared to $ 7,562 in fiscal 2012. we incurred pre-opening costs for eight stores in fiscal 2013 , six of which opened in fiscal 2013 ( five new stores and one relocation ) , and two of which will open in the first quarter of fiscal 2014. these costs were less than those incurred in fiscal 2012 for eight stores , as savings were realized in costs associated with the store openings in the current fiscal year . trade name impairment trade name impairment expense was zero in fiscal 2013 as compared to $ 15,533 in fiscal 2012. all impairment expense incurred in fiscal 2012 was related to the elfa segment . during fiscal 2012 , elfa was experiencing a challenging economic climate in europe , which resulted in elfa not achieving its third party sales and profit forecasts in fiscal 2012. the impairment expense in fiscal 2012 was related to the elfa trade name and was calculated using a relief from royalty discounted cash flow analysis . restructuring charges restructuring charges decreased $ 5,837 , or 91.6 % in fiscal 2013 to $ 532 as compared to $ 6,369 in fiscal 2012. during fiscal 2012 , elfa implemented a plan to restructure its business operations to improve efficiency . in conjunction with these efforts , a subsidiary in germany was sold and a manufacturing facility in norway was shut down and consolidated into a like facility in sweden . additionally , certain head office functions in sales and marketing were relocated from the västervik , sweden , manufacturing location to the group headquarters in malmö , sweden . most of the costs associated with these restructuring efforts were incurred in fiscal 2012 and the first half of fiscal 2013. other expenses other expenses increased $ 598 , or 60.6 % in fiscal 2013 to $ 1,585 as compared to $ 987 in fiscal 2012. the increase is primarily due to costs incurred in conjunction with our ipo . interest expense interest expense remained consistent in fiscal 2013 at $ 21,185 as compared to $ 21,388 in fiscal 2012 , primarily due to additional borrowings on the senior secured term loan facility , offset by lower interest rates . in april 2013 , the container store , inc. executed an amendment to the senior secured term loan facility ( the `` increase and repricing transactions `` ) , whereby borrowings under the senior secured term loan facility were increased by $ 90,000 and accrued interest at a lower rate of libor plus 4.25 % , subject to a libor floor of 1.25 % . prior to the increase and repricing transactions , the senior secured term loan facility accrued interest at a rate of libor plus 5.0 % , subject to a libor floor of 1.25 % . further , in november 2013 , a second amendment was executed to the senior secured term loan facility ( the `` repricing transaction `` ) . the senior secured term loan facility now accrues interest at a rate of libor + 3.25 % , subject to a libor floor of 1.00 % . additionally , a $ 31,000 repayment on the senior secured term loan facility was made in november 2013. loss on extinguishment of debt loss on extinguishment of debt decreased $ 6,104 , or 83.2 % , to $ 1,229 in fiscal 2013 as compared to $ 7,333 in fiscal 2012. in fiscal 2013 , we recorded expenses of $ 1,229 associated with the increase and repricing transactions in april 2013 and the repricing transaction in november 2013 , including the acceleration of deferred financing costs , legal fees , and other associated costs

net cash used in investing activities investing activities consist primarily of capital expenditures for new store openings , existing store remodels , infrastructure , information systems , and our distribution center . our total capital expenditures for the fiscal year ended february 28 , 2015 were $ 48,740 with new store openings and existing store remodels accounting for the majority of spending at $ 30,299. the remaining capital expenditures of $ 18,441 were primarily for investments in infrastructure to support growth and strategic initiatives , as well as elfa manufacturing facility enhancements . additionally , the company received net proceeds of $ 4,796 during fiscal 2014 , of which $ 3,846 related to the sale of a norwegian subsidiary , whose primary asset was a manufacturing facility that was shut down and consolidated into a like facility in sweden as part of elfa 's restructuring efforts in fiscal 2012 , and $ 912 related to the sale of a building at elfa . our total capital expenditures for the fiscal year ended march 1 , 2014 were $ 48,408 with new store openings and existing store remodels accounting for the majority of spending at $ 30,872. the remaining capital expenditures of $ 17,536 were primarily for investments in infrastructure to support growth and strategic initiatives , as well as elfa manufacturing facility enhancements . 53 our total capital expenditures for the fiscal year ended march 2 , 2013 were $ 49,219 with new store openings and existing store remodels accounting for the majority of spending at $ 29,481. the remaining capital expenditures of $ 19,738 were primarily for investments in infrastructure to support growth and strategic initiatives , as well as elfa manufacturing facility enhancements . net cash used in financing activities financing activities consist primarily of borrowings and payments under the senior secured term loan facility , the revolving credit facility , the elfa senior secured credit facilities , and the 2014 elfa senior secured credit facilities .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```net cash used in investing activities investing activities consist primarily of capital expenditures for new store openings , existing store remodels , infrastructure , information systems , and our distribution center . our total capital expenditures for the fiscal year ended february 28 , 2015 were $ 48,740 with new store openings and existing store remodels accounting for the majority of spending at $ 30,299. the remaining capital expenditures of $ 18,441 were primarily for investments in infrastructure to support growth and strategic initiatives , as well as elfa manufacturing facility enhancements . additionally , the company received net proceeds of $ 4,796 during fiscal 2014 , of which $ 3,846 related to the sale of a norwegian subsidiary , whose primary asset was a manufacturing facility that was shut down and consolidated into a like facility in sweden as part of elfa 's restructuring efforts in fiscal 2012 , and $ 912 related to the sale of a building at elfa . our total capital expenditures for the fiscal year ended march 1 , 2014 were $ 48,408 with new store openings and existing store remodels accounting for the majority of spending at $ 30,872. the remaining capital expenditures of $ 17,536 were primarily for investments in infrastructure to support growth and strategic initiatives , as well as elfa manufacturing facility enhancements . 53 our total capital expenditures for the fiscal year ended march 2 , 2013 were $ 49,219 with new store openings and existing store remodels accounting for the majority of spending at $ 29,481. the remaining capital expenditures of $ 19,738 were primarily for investments in infrastructure to support growth and strategic initiatives , as well as elfa manufacturing facility enhancements . net cash used in financing activities financing activities consist primarily of borrowings and payments under the senior secured term loan facility , the revolving credit facility , the elfa senior secured credit facilities , and the 2014 elfa senior secured credit facilities . ``` Suspicious Activity Report : net sales are historically higher in the fourth quarter due primarily to the impact of our annual elfa® sale , which begins on december 24 th and traditionally runs into february . gross profit and gross margin gross profit is equal to our net sales less cost of sales . gross profit as a percentage of net sales is referred to as gross margin . cost of sales in our tcs segment includes the purchase cost of inventory less vendor rebates , in-bound freight , as well as inventory shrinkage . costs incurred to ship or deliver merchandise to customers , as well as direct installation costs , are also included in cost of sales in our tcs segment . elfa segment cost of sales from manufacturing operations includes costs associated with production , primarily material , wages , freight and other variable costs , and applicable manufacturing overhead . the components of our cost of sales may not be comparable to the components of cost of sales or similar measures by other retailers . as a result , data in this report regarding our gross profit and gross margin may not be comparable to similar data made available by other retailers . our gross profit is variable in nature and generally follows changes in net sales . our gross margin can be impacted by changes in the mix of products sold . for example , sales from our tcs segment typically provide a higher gross margin than sales to third parties from our elfa segment . gross margin for our tcs segment is also susceptible to foreign currency risk as purchases of elfa® products from our elfa segment are in swedish krona , while sales of these products are in u.s. dollars . we mitigate this risk through the use of forward contracts , whereby we hedge purchases of inventory by locking in foreign currency exchange rates in advance . similarly , gross margin for our elfa segment is susceptible to foreign currency risk as certain purchases of raw materials are transacted in currencies other than swedish krona , which is the functional currency of elfa . 41 selling , general and administrative expenses selling , general and administrative expenses include all operating costs not included in cost of sales , stock-based compensation , and pre-opening costs . for our tcs segment , these include all payroll and payroll-related expenses , marketing expenses , all occupancy expenses ( which include rent , real estate taxes , common area maintenance , utilities , telephone , property insurance , and repairs and maintenance ) , costs to ship product from the distribution center to our stores , and supplies expenses . we also incur costs for our distribution and corporate office operations . for our elfa segment , these include sales and marketing expenses , product development costs , and all expenses related to operations at headquarters . depreciation and amortization are excluded from both gross profit and selling , general and administrative expenses . selling , general and administrative expenses include both fixed and variable components and , therefore , is not directly correlated with net sales . the components of our selling , general and administrative expenses may not be comparable to the components of similar measures of other retailers . we expect that our selling , general and administrative expenses will increase in future periods with expected future store growth . pre-opening costs non-capital expenditures associated with opening new stores and relocating stores , including rent , marketing expenses , travel and relocation costs , and training costs , are expensed as incurred and are included in pre-opening costs in the consolidated statement of operations . comparable store sales a store is included in the comparable store sales calculation on the first day of the sixteenth full fiscal month following the store 's opening . when a store is relocated , we continue to consider sales from that store to be comparable store sales . net sales from our website and call center are also included in calculations of comparable store sales . the comparable store sales growth operating measure in a given period is based on merchandise orders placed in that period , which may not always reflect when the merchandise is delivered to the customer . comparable store sales allow us to evaluate how our retail store base is performing by measuring the change in period-over-period net sales in stores that have been open for fifteen months or more . the comparable store sales growth metric is an operating measure intended only as supplemental information and is not a substitute for net sales presented in accordance with generally accepted accounting principles . various factors affect comparable store sales , including : national and regional economic trends in the united states ; changes in our merchandise mix ; changes in pricing ; changes in timing of promotional events or holidays ; and weather . opening new stores is an important part of our growth strategy . as we continue to pursue our growth strategy , we anticipate that a significant percentage of our net sales will come from stores not included in our comparable store sales calculation . accordingly , comparable store sales is only one measure we use to assess the success of our growth strategy . 42 average ticket average ticket for all periods is calculated by dividing ( a ) sales of merchandise by our tcs segment for that period ( regardless of whether such sales are included in comparable store sales for such period ) by ( b ) the number of transactions for that period comprising such sales . historically , the average ticket for our elfa® department has been significantly higher than our overall average ticket . average ticket is an operating measure intended only as supplemental information and is not a substitute for net sales presented in accordance with generally accepted accounting principles . story_separator_special_tag gross profit and gross margin gross profit in fiscal 2013 increased by $ 24,172 , or 5.8 % , compared to fiscal 2012. the increase in gross profit was primarily the result of increased sales . the following table summarizes the gross margin for fiscal 2013 and fiscal 2012 by segment and total . the segment margins include the impact of inter-segment sales from the elfa segment to the tcs segment : replace_table_token_17_th tcs gross margin declined by 80 basis points , primarily due to the appreciation of the swedish krona against the u.s. dollar . elfa gross margin improved primarily due to lower direct material costs compared to the same time period in fiscal 2012. on a consolidated basis , gross margin remained consistent due to a larger percentage of net sales coming from the more profitable tcs segment . selling , general and administrative expenses selling , general and administrative expenses in fiscal 2013 increased by $ 23,174 , or 7.0 % , compared to the fiscal 2012. the increase in selling , general and administrative expenses was primarily due to the increase in sales . the following table summarizes selling , general and administrative expenses as a percentage of consolidated net sales for fiscal 2013 and fiscal 2012 : replace_table_token_18_th selling , general and administrative expenses increased by 50 basis points as a percentage of total net sales . the increase was primarily due to a larger percentage of net sales coming from the tcs segment , whose selling , general , and administrative expenses are higher as a percentage of net sales than the elfa segment . on a stand-alone basis , selling , general , and administrative expenses for the tcs segment and elfa segment remained consistent as a percentage of each segment 's net sales year over year . stock-based compensation we recorded $ 15,137 of stock-based compensation expense in fiscal 2013 , primarily related to stock options granted under the 2013 equity plan which immediately vested upon closing of our ipo , as well as the modification of outstanding stock options granted under the 2012 equity plan to provide for immediate vesting as of october 31 , 2013 . 50 pre-opening costs pre-opening costs decreased $ 890 , or 11.8 % in fiscal 2013 to $ 6,672 , as compared to $ 7,562 in fiscal 2012. we incurred pre-opening costs for eight stores in fiscal 2013 , six of which opened in fiscal 2013 ( five new stores and one relocation ) , and two of which will open in the first quarter of fiscal 2014. these costs were less than those incurred in fiscal 2012 for eight stores , as savings were realized in costs associated with the store openings in the current fiscal year . trade name impairment trade name impairment expense was zero in fiscal 2013 as compared to $ 15,533 in fiscal 2012. all impairment expense incurred in fiscal 2012 was related to the elfa segment . during fiscal 2012 , elfa was experiencing a challenging economic climate in europe , which resulted in elfa not achieving its third party sales and profit forecasts in fiscal 2012. the impairment expense in fiscal 2012 was related to the elfa trade name and was calculated using a relief from royalty discounted cash flow analysis . restructuring charges restructuring charges decreased $ 5,837 , or 91.6 % in fiscal 2013 to $ 532 as compared to $ 6,369 in fiscal 2012. during fiscal 2012 , elfa implemented a plan to restructure its business operations to improve efficiency . in conjunction with these efforts , a subsidiary in germany was sold and a manufacturing facility in norway was shut down and consolidated into a like facility in sweden . additionally , certain head office functions in sales and marketing were relocated from the västervik , sweden , manufacturing location to the group headquarters in malmö , sweden . most of the costs associated with these restructuring efforts were incurred in fiscal 2012 and the first half of fiscal 2013. other expenses other expenses increased $ 598 , or 60.6 % in fiscal 2013 to $ 1,585 as compared to $ 987 in fiscal 2012. the increase is primarily due to costs incurred in conjunction with our ipo . interest expense interest expense remained consistent in fiscal 2013 at $ 21,185 as compared to $ 21,388 in fiscal 2012 , primarily due to additional borrowings on the senior secured term loan facility , offset by lower interest rates . in april 2013 , the container store , inc. executed an amendment to the senior secured term loan facility ( the `` increase and repricing transactions `` ) , whereby borrowings under the senior secured term loan facility were increased by $ 90,000 and accrued interest at a lower rate of libor plus 4.25 % , subject to a libor floor of 1.25 % . prior to the increase and repricing transactions , the senior secured term loan facility accrued interest at a rate of libor plus 5.0 % , subject to a libor floor of 1.25 % . further , in november 2013 , a second amendment was executed to the senior secured term loan facility ( the `` repricing transaction `` ) . the senior secured term loan facility now accrues interest at a rate of libor + 3.25 % , subject to a libor floor of 1.00 % . additionally , a $ 31,000 repayment on the senior secured term loan facility was made in november 2013. loss on extinguishment of debt loss on extinguishment of debt decreased $ 6,104 , or 83.2 % , to $ 1,229 in fiscal 2013 as compared to $ 7,333 in fiscal 2012. in fiscal 2013 , we recorded expenses of $ 1,229 associated with the increase and repricing transactions in april 2013 and the repricing transaction in november 2013 , including the acceleration of deferred financing costs , legal fees , and other associated costs

and expand our presence in emerging markets ; and further refine our manufacturing efficiencies and productivity improvements to improve profit , with continued focus on profitable products and markets and our effort to create a core competency in new product development . product development activities are inherently uncertain , and there can be no assurance that we will be able to obtain approval for any of our products , or if we obtain approval , that we will successfully commercialize any of our products . in addition , we may terminate our development efforts with respect to one or more of our products under development at any time , including before or during clinical trials . as a business in a highly regulated , competitive and seasonal industry , we face many risks and challenges . you should refer to the discussion in item 1a , “risk factors” in part i of this annual report for further discussion of risks related to our business . outlook we expect revenue growth over the next 12 months and a related positive impact on gross margin and earnings . this growth is expected to be driven primarily by increased sales of our sofia assays and molecular products . in addition , we expect continued and significant investment in research and development activities as we invest in our molecular platforms . we will continue our focus on prudently managing our business and delivering solid financial results , while at the same time striving to continue to introduce new products to the market and maintaining our emphasis on research and development investments for longer term growth . finally , we will continue to evaluate opportunities to acquire new product lines , technologies and companies . 27 results of operations comparison of years ended december 31 , 2013 and 2012 total revenues the following table compares total revenues for the years ended december 31 , 2013 and 2012 ( in thousands , except percentages ) : replace_table_token_5_th for the year ended december 31 , 2013 , total revenue increased 13 % to $ 175.4 million . the increase in total revenues was primarily due to an increase in influenza product sales . the revenue from our royalty , license fees and grant revenue category for all periods primarily relate to royalty payments earned on our patented technologies utilized by third parties and revenue from grants for research and development activities . cost of sales cost of sales decreased to 38 % of total revenues , for the year ended december 31 , 2013 compared to 39 % of total revenues , for the year ended december 31 , 2012. the absolute dollar increase in cost of sales of $ 5.7 million for the year ended december 31 , 2013 from the year ended december 31 , 2012 is primarily related to the variable nature of direct costs ( material and labor ) associated with the 13 % increase in total revenues in 2013. the decrease in cost of sales as a percentage of total revenue was primarily due to a more favorable product mix in 2013 related to our higher margin influenza products , partially offset by an increase in depreciation of leased sofia instruments in 2013. operating expenses the following table compares operating expenses for the years ended december 31 , 2013 and 2012 ( in thousands , except percentages ) : replace_table_token_6_th research and development expense research and development expense for the year ended december 31 , 2013 increased from $ 27.7 million to $ 34.2 million due to planned increases in our development of molecular technologies , primarily on our savanna program . in addition , there were increases related to the acquisition of both biohelix and andiatec totaling $ 1.2 million . also contributing to the increase was a reduction in reimbursement for research and development costs of $ 1.4 million and $ 3.0 million for the years ended december 31 , 2013 and 2012 , respectively , associated with a third-party collaboration agreement as more fully described in note 1 in the notes to the consolidated financial statements included in this annual report . research and development expenses include direct external costs such as fees paid to consultants , and internal direct and indirect costs such as compensation and other expenses for research and development personnel , supplies and materials , clinical trials and studies , facility costs and depreciation . due to the risks inherent in the product development process and given the early-stage of development of certain projects , we are unable to estimate with meaningful certainty the costs we will incur in the continued development of our product candidates for commercialization . we expect our research and development costs to be substantial as we move other product candidates into preclinical and clinical trials and advance our existing product candidates into later stages of development . 28 sales and marketing expense sales and marketing expense for the year ended december 31 , 2013 increased from $ 30.3 million to $ 33.8 million primarily due to additional investments of $ 2.4 million in our sales organization including an increase in personnel , travel , training costs , and incentives related to commercialization of new products . other key components of this expense relate to continued investment in assessing future product extensions and enhancements and market research . general and administrative expense general and administrative expense for the year ended december 31 , 2013 increased from $ 20.6 million to $ 26.3 million primarily related to the 2.3 % medical device excise tax of $ 1.8 million , acquisition related expenses of $ 1.0 million , an increase in stock compensation expense of $ 0.9 million related to the modification of performance awards and $ 0.7 million related to our enterprise resource planning system upgrade . story_separator_special_tag we also earn income from the licensing of technology . stock-based compensation compensation expense related to stock options granted is recognized ratably over the service vesting period for the entire option award . the total number of stock options expected to vest is adjusted by estimated forfeiture rates . we determine the estimated fair value of each stock option on the date of grant using the black-scholes option valuation model . compensation expense for time-based restricted stock awards and units is measured at the grant date and recognized ratably over the vesting period . we determine the fair value of time-based and performance-based restricted stock based on the closing market price of our common stock on the grant date . a portion of the restricted stock granted in 2012 and 2011 was performance-based and vesting is tied to achievement of specific company goals in 2014 and 2013. for purposes of measuring compensation expense , we estimate the amount of shares ultimately expected to vest at each reporting date based on management 's expectations regarding achievement of the relevant performance criteria . the recognition of compensation expense associated with performance-based restricted stock requires judgment in assessing the probability of meeting the performance goals , as well as defined criteria for assessing achievement of the performance-related goals . this may result in significant expense recognition in the period in which the performance goals are met or when achievement of the goals is deemed probable or may result in the reversal of previously recognized stock-based compensation expense if the performance criteria are deemed not probable of being met . the grant date of the performance-based restricted stock takes place when the grant is authorized and the specific achievement goals are communicated . the communication date of the performance goals can impact the valuation and associated expense of the restricted stock . the computation of the expected option life is based on a weighted-average calculation combining the average life of options that have already been exercised and post-vest cancellations with the estimated life of the remaining vested and unexercised options . the expected volatility is based on the historical volatility of our stock . the risk-free interest rate is based on the u.s treasury yield curve over the expected term of the option . historically , we have not paid any cash dividends on our common stock , and we do not anticipate paying any cash dividends in the foreseeable future . consequently , we use an expected dividend yield of zero in the black-scholes option valuation model . the estimated forfeiture rate is based on our historical experience and future expectations . reserve for uncollectible accounts receivable we maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments . our allowance for doubtful accounts is based on our assessment of the collectability of specific customer accounts , the aging of accounts receivable , our history of bad debts , and the general condition of the industry . if a major customer 's credit worthiness deteriorates , or our customers ' actual defaults exceed our historical experience , our estimates could change and adversely impact our reported results . inventory our policy is to value inventories at the lower of cost or market on a part-by-part basis . this policy requires us to make estimates regarding the market value of our inventories , including an assessment of excess or obsolete inventories . we determine excess and obsolete inventories based on an estimate of the future demand for our products within a specified time horizon , generally 12 months . the estimates we use for demand are also used for near-term capacity planning and inventory purchasing and are consistent with our revenue forecasts . if our actual demand is less than our forecast demand , we may be required to take additional excess inventory charges , which would decrease gross margin and adversely impact net operating results in the future . goodwill and intangible assets the effective life and related amortization of intangible assets with definite lives will be based on the higher of the percentage of usage or the straight-line method . useful lives are based on the expected number of years the asset will generate revenue or otherwise be used by us . goodwill and in-process research and development that have indefinite lives are not amortized but instead are tested at least annually for impairment , or more frequently when events or changes in circumstances indicate that the asset might be impaired . examples of such events or circumstances include : 35 the asset 's ability to continue to generate income from operations and positive cash flow in future periods ; any volatility or significant decline in our stock price and market capitalization compared to our net book value ; loss of legal ownership or title to an asset ; significant changes in our strategic business objectives and utilization of our assets ; and the impact of significant negative industry or economic trends . if a change were to occur in any of the above-mentioned factors or estimates , the likelihood of a material change in our reported results would increase . for goodwill , a two-step test is used to identify the potential impairment and to measure the amount of impairment , if any . the first step is to compare the fair value of a reporting unit with the carrying amount , including goodwill . if the fair value of a reporting unit exceeds its carrying amount , goodwill is considered not impaired ; otherwise , goodwill is impaired and the loss is measured by performing step two . under step two , the impairment loss is measured by comparing the implied fair value of the reporting unit with the carrying amount of goodwill . we are required to perform periodic evaluations for impairment of goodwill balances . we completed our annual evaluation for impairment of goodwill and in-process research and

liquidity and capital resources as of december 31 , 2013 and 2012 , our principal sources of liquidity consisted of the following ( in thousands ) : replace_table_token_9_th 31 during the year ended december 31 , 2013 , we received cash , pursuant to a grant agreement , which was restricted as to use until expenditures contemplated in the grant are made . as of december 31 , 2013 , we recorded this restricted cash as a component of prepaid expenses and other current assets as we anticipate making expenditures under the grant in 2014. the amount available to us under our senior credit facility can fluctuate from time to time due to , among other factors , our funded debt to adjusted ebitda ratio . cash provided by operating activities was $ 25.7 million during the year ended december 31 , 2013. we had net income of $ 7.4 million , including non-cash charges of $ 33.5 million of depreciation and amortization of intangible assets and property and equipment , and stock-based compensation . the most significant change in operating assets and liabilities was an increase in inventories of $ 12.0 million due to planned increases related to our molecular products , our spg facility relocation and the seasonal nature of our influenza business . cash provided by operating activities was $ 19.6 million during the year ended december 31 , 2012. we had net income of $ 5.0 million , including non-cash charges of $ 29.9 million of depreciation and amortization of intangible assets and property and equipment , and stock-based compensation . the most significant changes in operating assets and liabilities in 2012 included an increase in accounts receivable of $ 17.9 million related to an early start to the 2012/2013 cold and flu season in the fourth quarter of 2012. cash provided by operating activities was $ 47.5 million during the year ended december 31 , 2011. we had net income of $ 7.6 million , including non-cash charges of $ 25.3 million of depreciation and amortization of intangible assets and property and equipment , and stock-based compensation .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources as of december 31 , 2013 and 2012 , our principal sources of liquidity consisted of the following ( in thousands ) : replace_table_token_9_th 31 during the year ended december 31 , 2013 , we received cash , pursuant to a grant agreement , which was restricted as to use until expenditures contemplated in the grant are made . as of december 31 , 2013 , we recorded this restricted cash as a component of prepaid expenses and other current assets as we anticipate making expenditures under the grant in 2014. the amount available to us under our senior credit facility can fluctuate from time to time due to , among other factors , our funded debt to adjusted ebitda ratio . cash provided by operating activities was $ 25.7 million during the year ended december 31 , 2013. we had net income of $ 7.4 million , including non-cash charges of $ 33.5 million of depreciation and amortization of intangible assets and property and equipment , and stock-based compensation . the most significant change in operating assets and liabilities was an increase in inventories of $ 12.0 million due to planned increases related to our molecular products , our spg facility relocation and the seasonal nature of our influenza business . cash provided by operating activities was $ 19.6 million during the year ended december 31 , 2012. we had net income of $ 5.0 million , including non-cash charges of $ 29.9 million of depreciation and amortization of intangible assets and property and equipment , and stock-based compensation . the most significant changes in operating assets and liabilities in 2012 included an increase in accounts receivable of $ 17.9 million related to an early start to the 2012/2013 cold and flu season in the fourth quarter of 2012. cash provided by operating activities was $ 47.5 million during the year ended december 31 , 2011. we had net income of $ 7.6 million , including non-cash charges of $ 25.3 million of depreciation and amortization of intangible assets and property and equipment , and stock-based compensation . ``` Suspicious Activity Report : and expand our presence in emerging markets ; and further refine our manufacturing efficiencies and productivity improvements to improve profit , with continued focus on profitable products and markets and our effort to create a core competency in new product development . product development activities are inherently uncertain , and there can be no assurance that we will be able to obtain approval for any of our products , or if we obtain approval , that we will successfully commercialize any of our products . in addition , we may terminate our development efforts with respect to one or more of our products under development at any time , including before or during clinical trials . as a business in a highly regulated , competitive and seasonal industry , we face many risks and challenges . you should refer to the discussion in item 1a , “risk factors” in part i of this annual report for further discussion of risks related to our business . outlook we expect revenue growth over the next 12 months and a related positive impact on gross margin and earnings . this growth is expected to be driven primarily by increased sales of our sofia assays and molecular products . in addition , we expect continued and significant investment in research and development activities as we invest in our molecular platforms . we will continue our focus on prudently managing our business and delivering solid financial results , while at the same time striving to continue to introduce new products to the market and maintaining our emphasis on research and development investments for longer term growth . finally , we will continue to evaluate opportunities to acquire new product lines , technologies and companies . 27 results of operations comparison of years ended december 31 , 2013 and 2012 total revenues the following table compares total revenues for the years ended december 31 , 2013 and 2012 ( in thousands , except percentages ) : replace_table_token_5_th for the year ended december 31 , 2013 , total revenue increased 13 % to $ 175.4 million . the increase in total revenues was primarily due to an increase in influenza product sales . the revenue from our royalty , license fees and grant revenue category for all periods primarily relate to royalty payments earned on our patented technologies utilized by third parties and revenue from grants for research and development activities . cost of sales cost of sales decreased to 38 % of total revenues , for the year ended december 31 , 2013 compared to 39 % of total revenues , for the year ended december 31 , 2012. the absolute dollar increase in cost of sales of $ 5.7 million for the year ended december 31 , 2013 from the year ended december 31 , 2012 is primarily related to the variable nature of direct costs ( material and labor ) associated with the 13 % increase in total revenues in 2013. the decrease in cost of sales as a percentage of total revenue was primarily due to a more favorable product mix in 2013 related to our higher margin influenza products , partially offset by an increase in depreciation of leased sofia instruments in 2013. operating expenses the following table compares operating expenses for the years ended december 31 , 2013 and 2012 ( in thousands , except percentages ) : replace_table_token_6_th research and development expense research and development expense for the year ended december 31 , 2013 increased from $ 27.7 million to $ 34.2 million due to planned increases in our development of molecular technologies , primarily on our savanna program . in addition , there were increases related to the acquisition of both biohelix and andiatec totaling $ 1.2 million . also contributing to the increase was a reduction in reimbursement for research and development costs of $ 1.4 million and $ 3.0 million for the years ended december 31 , 2013 and 2012 , respectively , associated with a third-party collaboration agreement as more fully described in note 1 in the notes to the consolidated financial statements included in this annual report . research and development expenses include direct external costs such as fees paid to consultants , and internal direct and indirect costs such as compensation and other expenses for research and development personnel , supplies and materials , clinical trials and studies , facility costs and depreciation . due to the risks inherent in the product development process and given the early-stage of development of certain projects , we are unable to estimate with meaningful certainty the costs we will incur in the continued development of our product candidates for commercialization . we expect our research and development costs to be substantial as we move other product candidates into preclinical and clinical trials and advance our existing product candidates into later stages of development . 28 sales and marketing expense sales and marketing expense for the year ended december 31 , 2013 increased from $ 30.3 million to $ 33.8 million primarily due to additional investments of $ 2.4 million in our sales organization including an increase in personnel , travel , training costs , and incentives related to commercialization of new products . other key components of this expense relate to continued investment in assessing future product extensions and enhancements and market research . general and administrative expense general and administrative expense for the year ended december 31 , 2013 increased from $ 20.6 million to $ 26.3 million primarily related to the 2.3 % medical device excise tax of $ 1.8 million , acquisition related expenses of $ 1.0 million , an increase in stock compensation expense of $ 0.9 million related to the modification of performance awards and $ 0.7 million related to our enterprise resource planning system upgrade . story_separator_special_tag we also earn income from the licensing of technology . stock-based compensation compensation expense related to stock options granted is recognized ratably over the service vesting period for the entire option award . the total number of stock options expected to vest is adjusted by estimated forfeiture rates . we determine the estimated fair value of each stock option on the date of grant using the black-scholes option valuation model . compensation expense for time-based restricted stock awards and units is measured at the grant date and recognized ratably over the vesting period . we determine the fair value of time-based and performance-based restricted stock based on the closing market price of our common stock on the grant date . a portion of the restricted stock granted in 2012 and 2011 was performance-based and vesting is tied to achievement of specific company goals in 2014 and 2013. for purposes of measuring compensation expense , we estimate the amount of shares ultimately expected to vest at each reporting date based on management 's expectations regarding achievement of the relevant performance criteria . the recognition of compensation expense associated with performance-based restricted stock requires judgment in assessing the probability of meeting the performance goals , as well as defined criteria for assessing achievement of the performance-related goals . this may result in significant expense recognition in the period in which the performance goals are met or when achievement of the goals is deemed probable or may result in the reversal of previously recognized stock-based compensation expense if the performance criteria are deemed not probable of being met . the grant date of the performance-based restricted stock takes place when the grant is authorized and the specific achievement goals are communicated . the communication date of the performance goals can impact the valuation and associated expense of the restricted stock . the computation of the expected option life is based on a weighted-average calculation combining the average life of options that have already been exercised and post-vest cancellations with the estimated life of the remaining vested and unexercised options . the expected volatility is based on the historical volatility of our stock . the risk-free interest rate is based on the u.s treasury yield curve over the expected term of the option . historically , we have not paid any cash dividends on our common stock , and we do not anticipate paying any cash dividends in the foreseeable future . consequently , we use an expected dividend yield of zero in the black-scholes option valuation model . the estimated forfeiture rate is based on our historical experience and future expectations . reserve for uncollectible accounts receivable we maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments . our allowance for doubtful accounts is based on our assessment of the collectability of specific customer accounts , the aging of accounts receivable , our history of bad debts , and the general condition of the industry . if a major customer 's credit worthiness deteriorates , or our customers ' actual defaults exceed our historical experience , our estimates could change and adversely impact our reported results . inventory our policy is to value inventories at the lower of cost or market on a part-by-part basis . this policy requires us to make estimates regarding the market value of our inventories , including an assessment of excess or obsolete inventories . we determine excess and obsolete inventories based on an estimate of the future demand for our products within a specified time horizon , generally 12 months . the estimates we use for demand are also used for near-term capacity planning and inventory purchasing and are consistent with our revenue forecasts . if our actual demand is less than our forecast demand , we may be required to take additional excess inventory charges , which would decrease gross margin and adversely impact net operating results in the future . goodwill and intangible assets the effective life and related amortization of intangible assets with definite lives will be based on the higher of the percentage of usage or the straight-line method . useful lives are based on the expected number of years the asset will generate revenue or otherwise be used by us . goodwill and in-process research and development that have indefinite lives are not amortized but instead are tested at least annually for impairment , or more frequently when events or changes in circumstances indicate that the asset might be impaired . examples of such events or circumstances include : 35 the asset 's ability to continue to generate income from operations and positive cash flow in future periods ; any volatility or significant decline in our stock price and market capitalization compared to our net book value ; loss of legal ownership or title to an asset ; significant changes in our strategic business objectives and utilization of our assets ; and the impact of significant negative industry or economic trends . if a change were to occur in any of the above-mentioned factors or estimates , the likelihood of a material change in our reported results would increase . for goodwill , a two-step test is used to identify the potential impairment and to measure the amount of impairment , if any . the first step is to compare the fair value of a reporting unit with the carrying amount , including goodwill . if the fair value of a reporting unit exceeds its carrying amount , goodwill is considered not impaired ; otherwise , goodwill is impaired and the loss is measured by performing step two . under step two , the impairment loss is measured by comparing the implied fair value of the reporting unit with the carrying amount of goodwill . we are required to perform periodic evaluations for impairment of goodwill balances . we completed our annual evaluation for impairment of goodwill and in-process research and

prior to reopening any office , we have strictly followed applicable laws in preparing and maintaining the space to be as safe as possible and providing an environment that encourages the following of social distancing guidelines , including , without limitation , staggering employees ' schedules to ensure ample space is available between work spaces and occupied offices . in jurisdictions where applicable laws have not permitted us to reopen our offices , our employees continue to work remotely . we will continue to monitor and follow local laws and guidance to assess our ability to reopen or keep open our offices across the globe . our it infrastructure and communications are robust and we are focused on maintaining business continuity , while doing our share to support each community where we do business . the daily operations of our business are not materially directly dependent on a supply chain or production chain that may be disrupted due to the pandemic . impact to the global economy and jurisdictions we invest in as a result of the unprecedented measures taken across the globe , the disruption and impact of the covid-19 pandemic to the global economy and financial markets has been significant . we continue to closely monitor changes in applicable laws and covid-19 guidance provided by local , state and federal regulators , or their equivalents , in the jurisdictions in which we operate . nearly all the markets in which we operate continue to enforce some form of restriction on the operations of businesses due to the covid-19 pandemic . these precautions led to the shutdown of nonessential services , which led to closures of stores in our retail portfolio and limited business operations of some of our office tenants . in addition , this caused us to close the shelbourne hotel in dublin , ireland from march 15 , 2020 to june 29 , 2020. on october 21 , 2020 , due to a spike in new cases , ireland implemented new lockdown measures that closed non-essential businesses and limited travel from home to a 33 distance of five kilometers for several weeks . although ireland eased restrictions in december , it has since implemented another national lockdown effective january 1 , 2021 that remains in effect through at least march 5 , 2021. although the shelbourne has remained open since june 30 , 2020 , we have experienced and continue to expect significantly limited activity at the property . additionally , in early january 2021 , the united kingdom also implemented a national lockdown that closes non-essential businesses as cases have continued to rise there as well . the continued and long-lasting economic impact of the covid-19 pandemic may lead to some of our multifamily tenants having difficulty in making rental payments on time , or at all . the department of labor reported that as of the end january 2021 , the unemployment rate was 6.3 % , with 14.8 million people reporting they had been unable to work because their employer closed or lost business due to the pandemic . although the unemployment number has come down from its peak in april and may 2020 , many sectors of the economy still remain at a virtual standstill . the bureau of economic analysis ( `` bea `` ) reported that the u.s. gross domestic product ( `` gdp `` ) shrank 4.8 % in the first quarter 2020 and 34.3 % in the second quarter of 2020. coming off the second quarter 2020 , which was the worst quarter in history for gdp growth , the u.s. economy grew at its fastest pace ever in the third quarter 2020 and continued to grow in the fourth quarter , however we expect continued uncertainty going forward as the covid-19 pandemic continues to effect the global economy . story_separator_special_tag roman ' , sans-serif ; font-size:10pt ; font-weight:400 ; line-height:120 % ; padding-left:14.5pt `` > similar to our multifamily portfolio we are utilizing virtual leasing technology for our commercial portfolio . during year ended december 31 , 2020 , we closed on approximately 227 leasing deals across 2.6 million sq . ft. ◦ in the western united states , we closed 84 leasing deals across 1.1 million sq . ft ◦ in united kingdom and ireland , we closed 143 leasing deals across 1.5 million sq . ft global development and hotel update in our development and redevelopment portfolio we have experienced delays , but we currently do not expect material cost increases as we have fixed-rate construction contracts on projects that are currently under construction and for projects that are in early phases we have not had to halt activities as we are mainly in the pre-construction phase and are able to continue progress on projects . ireland is currently in a nationwide lockdown that started on january 8 , 2021 with an expected reopening date of march 5 , 2021 , which has halted construction during the lockdown . we expect that this will push out our timeline on development projects by four months but we believe that any associated costs can be covered within our existing contingency plans on the assumption that there are no further lockdowns . we have three properties that consist of 0.1 million square feet of office space and 277 market rate multifamily units that should complete construction by the end of 2021. we also have five properties consisting of 0.3 million square feet of commercial space and 576 market rate multifamily units that are unstabilized and undergoing lease up that we expect will be stabilized by the end of 2021. our vhh portfolio also has 932 units that we expect will finish construction or complete lease up by the end of 2021. please refer to development and redevelopment in the liquidity and capital resources section for a more detailed discussion regarding our development initiatives . story_separator_special_tag the gains recognized during the year ended december 31 , 2020 primarily relate to the sale of uk industrial portfolio to the industrial jv , the club palisades multifamily property in the western united states , baggot plaza in dublin , ireland , pioneer point a multifamily property in the united kingdom and certain other non-core assets in europe . included in the gains on sale of real estate , net for december 31 , 2020 is an impairment loss of $ 15.6 million on five retail properties in the united kingdom and a residential property in the western united states . for the year ended december 31 , 2019 , the activity relates to the deconsolidation of the investments that went into the axa joint venture ( as described above ) , the sale of the ritz carlton hotel in lake tahoe and smaller , non-core retail assets in the western united states and non-core commercial properties in the united kingdom . interest expense was $ 211.2 million for the year ended december 31 , 2020 as compared to $ 215.1 million for the year ended december 31 , 2019. the decrease is due to lower consolidated property level debt balances resulting from the sale of assets into the axa joint venture and sales of assets in the current and prior period . these decreases were offset by $ 9.3 million in prepayment penalties associated with the kwe tender offer completed in 2020 , early repayment of mortgages on assets as part of the uk industrial portfolio sale and the refinance of a mortgage on a multifamily property in the western united states . transaction-related expenses were $ 0.9 million for the year ended december 31 , 2020 as compared to $ 6.8 million for the same period in 2019. the decrease is due to expenses incurred in 2019 investigating potential transactions that ultimately were not consummated . we had net income of $ 2.3 million attributable to noncontrolling interests during the year ended december 31 , 2020 compared to net income of $ 94.4 million attributable to noncontrolling interests during the year ended december 31 , 2019. the decrease in income attributable to noncontrolling interest is due to allocation of gains in 2019 associated with the sale of ritz carlton , lake tahoe hotel and the axa joint venture to our equity partners . co-investment portfolio segment investment management on our co-investment portfolio assets , we receive asset management fees for managing assets on behalf of our partners . during the year ended december 31 , 2020 , fees recorded through revenues were $ 22.5 million as compared to $ 24.9 million for the same period in 2019. during the year ended december 31 , 2020 we had higher base management fees as a result of having more assets under management in our co-investment platform mainly from the axa joint venture . however , this was offset by $ 6.4 million of acquisition related fees that we received from equity partners in the prior period with no comparable activity in the current period . these fees are recorded as a component of investment management , property services and research fees . performance fees are recorded as part of income from unconsolidated investments and discussed below . expenses increased to $ 26.9 million for the year ended december 31 , 2020 as compared to $ 20.7 million primarily due to severance costs and costs associated with our fund management business including certain discretionary compensation . co-investment operations in addition to our management of investments in the co-investment portfolio , we have ownership interests in the properties . the table below represents a breakout of the amounts within income from unconsolidated investments which represents our share of underlying property investments in the co-investment portfolio assets and any performance fees relating to our management of these properties for the year ended december 31 , 2020 and the year ended december 31 , 2019 : 43 replace_table_token_17_th our share of jv noi ( rental income net of rental operating expenses ) increased in the current period due to the sale of interests in previously consolidated properties into unconsolidated partnerships resulting in moving the recognition of income from these assets from our consolidated portfolio to our co-investment portfolio as described above . in addition , during the year ended december 31 , 2020 , we received a surrender premium , which is a breakage fee we received from a tenant in the united kingdom related to the early extinguishment of its lease and we experienced an increase in noi in our vhh portfolio . increases in jv noi were offset by an impairment loss recorded in the third quarter of 2020 included in the table above within loss on sale of real estate of $ 6.7 million relating to a property in a retail portfolio in the united kingdom that was subsequently sold during the year . we had an additional impairment loss of $ 4.2 million in the fourth quarter 2020 on this portfolio that brought the carrying value of this joint venture to zero . during the year ended december 31 , 2019 , we had gains on sale of real estate of $ 53.5 million primarily relating to the sale of two multifamily properties in the western united states which was offset by an impairment of $ 10.3 million on a residential development in the western united states that was subsequently sold in the first quarter of 2020. during the year ended december 31 , 2020 we had fair value gains on vhh primarily relating to conversions of development projects to operating properties as construction work was completed and lease up of the properties commenced . we also had fair value gains associated with the completion of clancy quay phase 3 which is currently undergoing lease up and net foreign exchange gains relating to the strengthening of the euro against the u.s. dollar on our euro denominated fair value investments

liquidity kennedy wilson has a strong financial and capital position to withstand the potential near-term cash flow impact caused by the covid-19 pandemic . as of december 31 , 2020 , we had $ 965.1 million ( $ 640.3 million of which is in foreign currencies of gbp or eur ) of cash on our consolidated balance sheet . we also currently have $ 300 million available to draw on our unsecured revolving credit facility . as of december 31 , 2020 , we have 4.1 weighted average years to maturity on our debt obligations . we have limited debt maturities over 2021 , which total $ 123.7 million which are secured by non-recourse property-level financings and represent only 2 % of our total outstanding debt obligations . subsequent to december 31 , 2020 , we also closed the offering of $ 500 million aggregate principal amount of 4.750 % senior notes due 2029 ( the “ 2029 notes ” ) and $ 500 million aggregate principal amount of 5.000 % senior notes due 2031 ( the “ 2031 notes , ” and together with the 2029 notes , the “ notes ” ) . we intend to use the proceeds from the offering of the notes to repurchase ( through a previously announced tender offer ) or redeem $ 1 billion aggregate principal amount of our outstanding 5.875 % senior notes due 2024 ( the “ 2024 notes ” ) . investment portfolio and fourth quarter 2020 and 2021 rent collections as of february 18 , 2021 , we have collected a total of 95 % of our share of rents for the quarter ended december 31 , 2020 from our properties in our global investment portfolio .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 kennedy wilson has a strong financial and capital position to withstand the potential near-term cash flow impact caused by the covid-19 pandemic . as of december 31 , 2020 , we had $ 965.1 million ( $ 640.3 million of which is in foreign currencies of gbp or eur ) of cash on our consolidated balance sheet . we also currently have $ 300 million available to draw on our unsecured revolving credit facility . as of december 31 , 2020 , we have 4.1 weighted average years to maturity on our debt obligations . we have limited debt maturities over 2021 , which total $ 123.7 million which are secured by non-recourse property-level financings and represent only 2 % of our total outstanding debt obligations . subsequent to december 31 , 2020 , we also closed the offering of $ 500 million aggregate principal amount of 4.750 % senior notes due 2029 ( the “ 2029 notes ” ) and $ 500 million aggregate principal amount of 5.000 % senior notes due 2031 ( the “ 2031 notes , ” and together with the 2029 notes , the “ notes ” ) . we intend to use the proceeds from the offering of the notes to repurchase ( through a previously announced tender offer ) or redeem $ 1 billion aggregate principal amount of our outstanding 5.875 % senior notes due 2024 ( the “ 2024 notes ” ) . investment portfolio and fourth quarter 2020 and 2021 rent collections as of february 18 , 2021 , we have collected a total of 95 % of our share of rents for the quarter ended december 31 , 2020 from our properties in our global investment portfolio . ``` Suspicious Activity Report : prior to reopening any office , we have strictly followed applicable laws in preparing and maintaining the space to be as safe as possible and providing an environment that encourages the following of social distancing guidelines , including , without limitation , staggering employees ' schedules to ensure ample space is available between work spaces and occupied offices . in jurisdictions where applicable laws have not permitted us to reopen our offices , our employees continue to work remotely . we will continue to monitor and follow local laws and guidance to assess our ability to reopen or keep open our offices across the globe . our it infrastructure and communications are robust and we are focused on maintaining business continuity , while doing our share to support each community where we do business . the daily operations of our business are not materially directly dependent on a supply chain or production chain that may be disrupted due to the pandemic . impact to the global economy and jurisdictions we invest in as a result of the unprecedented measures taken across the globe , the disruption and impact of the covid-19 pandemic to the global economy and financial markets has been significant . we continue to closely monitor changes in applicable laws and covid-19 guidance provided by local , state and federal regulators , or their equivalents , in the jurisdictions in which we operate . nearly all the markets in which we operate continue to enforce some form of restriction on the operations of businesses due to the covid-19 pandemic . these precautions led to the shutdown of nonessential services , which led to closures of stores in our retail portfolio and limited business operations of some of our office tenants . in addition , this caused us to close the shelbourne hotel in dublin , ireland from march 15 , 2020 to june 29 , 2020. on october 21 , 2020 , due to a spike in new cases , ireland implemented new lockdown measures that closed non-essential businesses and limited travel from home to a 33 distance of five kilometers for several weeks . although ireland eased restrictions in december , it has since implemented another national lockdown effective january 1 , 2021 that remains in effect through at least march 5 , 2021. although the shelbourne has remained open since june 30 , 2020 , we have experienced and continue to expect significantly limited activity at the property . additionally , in early january 2021 , the united kingdom also implemented a national lockdown that closes non-essential businesses as cases have continued to rise there as well . the continued and long-lasting economic impact of the covid-19 pandemic may lead to some of our multifamily tenants having difficulty in making rental payments on time , or at all . the department of labor reported that as of the end january 2021 , the unemployment rate was 6.3 % , with 14.8 million people reporting they had been unable to work because their employer closed or lost business due to the pandemic . although the unemployment number has come down from its peak in april and may 2020 , many sectors of the economy still remain at a virtual standstill . the bureau of economic analysis ( `` bea `` ) reported that the u.s. gross domestic product ( `` gdp `` ) shrank 4.8 % in the first quarter 2020 and 34.3 % in the second quarter of 2020. coming off the second quarter 2020 , which was the worst quarter in history for gdp growth , the u.s. economy grew at its fastest pace ever in the third quarter 2020 and continued to grow in the fourth quarter , however we expect continued uncertainty going forward as the covid-19 pandemic continues to effect the global economy . story_separator_special_tag roman ' , sans-serif ; font-size:10pt ; font-weight:400 ; line-height:120 % ; padding-left:14.5pt `` > similar to our multifamily portfolio we are utilizing virtual leasing technology for our commercial portfolio . during year ended december 31 , 2020 , we closed on approximately 227 leasing deals across 2.6 million sq . ft. ◦ in the western united states , we closed 84 leasing deals across 1.1 million sq . ft ◦ in united kingdom and ireland , we closed 143 leasing deals across 1.5 million sq . ft global development and hotel update in our development and redevelopment portfolio we have experienced delays , but we currently do not expect material cost increases as we have fixed-rate construction contracts on projects that are currently under construction and for projects that are in early phases we have not had to halt activities as we are mainly in the pre-construction phase and are able to continue progress on projects . ireland is currently in a nationwide lockdown that started on january 8 , 2021 with an expected reopening date of march 5 , 2021 , which has halted construction during the lockdown . we expect that this will push out our timeline on development projects by four months but we believe that any associated costs can be covered within our existing contingency plans on the assumption that there are no further lockdowns . we have three properties that consist of 0.1 million square feet of office space and 277 market rate multifamily units that should complete construction by the end of 2021. we also have five properties consisting of 0.3 million square feet of commercial space and 576 market rate multifamily units that are unstabilized and undergoing lease up that we expect will be stabilized by the end of 2021. our vhh portfolio also has 932 units that we expect will finish construction or complete lease up by the end of 2021. please refer to development and redevelopment in the liquidity and capital resources section for a more detailed discussion regarding our development initiatives . story_separator_special_tag the gains recognized during the year ended december 31 , 2020 primarily relate to the sale of uk industrial portfolio to the industrial jv , the club palisades multifamily property in the western united states , baggot plaza in dublin , ireland , pioneer point a multifamily property in the united kingdom and certain other non-core assets in europe . included in the gains on sale of real estate , net for december 31 , 2020 is an impairment loss of $ 15.6 million on five retail properties in the united kingdom and a residential property in the western united states . for the year ended december 31 , 2019 , the activity relates to the deconsolidation of the investments that went into the axa joint venture ( as described above ) , the sale of the ritz carlton hotel in lake tahoe and smaller , non-core retail assets in the western united states and non-core commercial properties in the united kingdom . interest expense was $ 211.2 million for the year ended december 31 , 2020 as compared to $ 215.1 million for the year ended december 31 , 2019. the decrease is due to lower consolidated property level debt balances resulting from the sale of assets into the axa joint venture and sales of assets in the current and prior period . these decreases were offset by $ 9.3 million in prepayment penalties associated with the kwe tender offer completed in 2020 , early repayment of mortgages on assets as part of the uk industrial portfolio sale and the refinance of a mortgage on a multifamily property in the western united states . transaction-related expenses were $ 0.9 million for the year ended december 31 , 2020 as compared to $ 6.8 million for the same period in 2019. the decrease is due to expenses incurred in 2019 investigating potential transactions that ultimately were not consummated . we had net income of $ 2.3 million attributable to noncontrolling interests during the year ended december 31 , 2020 compared to net income of $ 94.4 million attributable to noncontrolling interests during the year ended december 31 , 2019. the decrease in income attributable to noncontrolling interest is due to allocation of gains in 2019 associated with the sale of ritz carlton , lake tahoe hotel and the axa joint venture to our equity partners . co-investment portfolio segment investment management on our co-investment portfolio assets , we receive asset management fees for managing assets on behalf of our partners . during the year ended december 31 , 2020 , fees recorded through revenues were $ 22.5 million as compared to $ 24.9 million for the same period in 2019. during the year ended december 31 , 2020 we had higher base management fees as a result of having more assets under management in our co-investment platform mainly from the axa joint venture . however , this was offset by $ 6.4 million of acquisition related fees that we received from equity partners in the prior period with no comparable activity in the current period . these fees are recorded as a component of investment management , property services and research fees . performance fees are recorded as part of income from unconsolidated investments and discussed below . expenses increased to $ 26.9 million for the year ended december 31 , 2020 as compared to $ 20.7 million primarily due to severance costs and costs associated with our fund management business including certain discretionary compensation . co-investment operations in addition to our management of investments in the co-investment portfolio , we have ownership interests in the properties . the table below represents a breakout of the amounts within income from unconsolidated investments which represents our share of underlying property investments in the co-investment portfolio assets and any performance fees relating to our management of these properties for the year ended december 31 , 2020 and the year ended december 31 , 2019 : 43 replace_table_token_17_th our share of jv noi ( rental income net of rental operating expenses ) increased in the current period due to the sale of interests in previously consolidated properties into unconsolidated partnerships resulting in moving the recognition of income from these assets from our consolidated portfolio to our co-investment portfolio as described above . in addition , during the year ended december 31 , 2020 , we received a surrender premium , which is a breakage fee we received from a tenant in the united kingdom related to the early extinguishment of its lease and we experienced an increase in noi in our vhh portfolio . increases in jv noi were offset by an impairment loss recorded in the third quarter of 2020 included in the table above within loss on sale of real estate of $ 6.7 million relating to a property in a retail portfolio in the united kingdom that was subsequently sold during the year . we had an additional impairment loss of $ 4.2 million in the fourth quarter 2020 on this portfolio that brought the carrying value of this joint venture to zero . during the year ended december 31 , 2019 , we had gains on sale of real estate of $ 53.5 million primarily relating to the sale of two multifamily properties in the western united states which was offset by an impairment of $ 10.3 million on a residential development in the western united states that was subsequently sold in the first quarter of 2020. during the year ended december 31 , 2020 we had fair value gains on vhh primarily relating to conversions of development projects to operating properties as construction work was completed and lease up of the properties commenced . we also had fair value gains associated with the completion of clancy quay phase 3 which is currently undergoing lease up and net foreign exchange gains relating to the strengthening of the euro against the u.s. dollar on our euro denominated fair value investments

development and redevelopment programs historically , a significant portion of our growth has come from our development and redevelopment efforts . we have a proactive planning process by which we continually evaluate the size , timing , costs and scope of our development and redevelopment programs and , as necessary , scale activity to reflect the economic conditions and the real estate fundamentals that exist in our strategic submarkets . we are currently proceeding on certain redevelopment projects , and we take a cautious and selective approach when determining if a certain development or redevelopment project will benefit our portfolio . in addition , we may be unable to lease committed development or redevelopment properties at expected rental rates or within projected timeframes or complete development or redevelopment properties on schedule or within budgeted amounts , which could adversely affect our financial condition , results of operations and cash flow . financial and operating performance our financial and operating performance is dependent upon the demand for office , industrial and other commercial space in our markets , our leasing results , our acquisition , disposition and development activity , our financing activity , our cash requirements and economic and market conditions , including prevailing interest rates . volatile economic conditions could result in a reduction of the availability of financing and potentially in higher borrowing costs . these factors , coupled with an ongoing economic recovery , have reduced the volume of real estate transactions and created credit 40 stresses on some businesses . vacancy rates may increase , and rental rates may decline , through 2013 and possibly beyond as the current economic climate may negatively impacts tenants . we expect that the impact of the current state of the economy , including high unemployment and potential volatility in the financial and credit markets , could have a dampening effect on the fundamentals of our business , including increases in past due accounts , tenant defaults , lower occupancy and reduced effective rents . these conditions would negatively affect our future net income and cash flows and could have a material adverse effect on our financial condition . we believe that the quality of our assets and our strong balance sheet will enable us to raise debt capital , if necessary , in various forms and from different sources , including traditional term or secured loans from banks , pension funds and life insurance companies . however , there can be no assurance that we will be able to borrow funds on terms that are economically attractive or at all . we seek revenue growth throughout our portfolio by increasing occupancy and rental rates . occupancy at our wholly owned properties at december 31 , 2012 was 88.3 % . the table below summarizes selected operating and leasing statistics of our wholly owned operating properties for the year ended december 31 , 2012 : year ended december 31 , 2012 leasing activity : total net rentable square feet owned ( 1 ) 24,239,296 occupancy percentage ( end of period ) 88.3 % average occupancy percentage 88.3 % new leases and expansions commenced ( square feet ) 1,801,876 leases renewed ( square feet ) 1,716,736 net absorption ( square feet ) ( 2 ) 284,870 percentage change in rental rates per square feet ( 3 ) : new and expansion rental rates 3.8 % renewal rental rates 1.2 % combined rental rates 2.0 % capital costs committed ( 4 ) : leasing commissions ( per square feet ) $ 4.79 tenant improvements ( per square feet ) $ 13.11 ( 1 ) for each period , includes all properties in the core portfolio ( i.e . not under development or redevelopment ) , including properties that were sold during these periods . ( 2 ) includes leasing related to completed developments and redevelopments , as well as sold properties . ( 3 ) rental rates include base rent plus reimbursement for operating expenses and real estate taxes . ( 4 ) calculated on an average basis . in seeking to increase revenue through our operating , financing and investment activities , we also seek to minimize operating risks , including ( i ) tenant rollover risk , ( ii ) tenant credit risk and ( iii ) development risk . tenant rollover risk : we are subject to the risks that tenant leases , upon expiration , are not renewed , that space may not be relet ; and that the terms of renewal or reletting ( including the cost of renovations ) may be less favorable to us than the current lease terms . leases accounting for approximately 8.5 % of our aggregate final annualized base rents as of december 31 , 2012 ( representing approximately 7.7 % of the net rentable square feet of the properties ) expire without penalty in 2013 . we maintain an active dialogue with our tenants in an effort to maximize lease renewals . our retention rate for leases that were scheduled to expire in 2012 was 66.2 % . if we are unable to renew leases or relet space under expiring leases , at anticipated rental rates , or if tenants terminate their leases early , our cash flow would be adversely impacted . 41 tenant credit risk : in the event of a tenant default , we may experience delays in enforcing our rights as a landlord and may incur substantial costs in protecting our investment . our management regularly evaluates our accounts receivable reserve policy in light of our tenant base and general and local economic conditions . our accounts receivable allowance was $ 16.6 million or 10.9 % of total receivables ( including accrued rent receivable ) as of december 31 , 2012 compared to $ 15.5 million or 11.2 % of total receivables ( including accrued rent receivable ) as of december 31 , 2011 . story_separator_special_tag for accrued rent receivables , we consider the results of the evaluation of specific accounts as well as other factors including assigning risk factors to different industries based on our tenants standard industrial classification . considering various factors including assigning a risk factor to different industries , these percentages are based on historical collection and write-off experience adjusted for current market conditions . deferred costs we incur direct costs related to the financing , development and leasing of our properties . management exercises judgment in determining whether such costs , particularly internal costs , meet the criteria for capitalization or must be expensed . capitalized financing fees are amortized over the related loan term on a basis that approximates the effective interest method while capitalized leasing costs are amortized over the related lease term . management re-evaluates the remaining useful lives of leasing costs as the creditworthiness of our tenants and economic and market conditions change . purchase price allocation we allocate the purchase price of properties to net tangible and identified intangible assets acquired based on fair values . above-market and below-market in-place lease values for acquired properties are recorded based on the present value ( using an interest rate which reflects the risks associated with the leases acquired ) of the difference between ( i ) the contractual amounts to be paid pursuant to the in-place leases and ( ii ) our estimate of the fair market lease rates for the corresponding in-place leases , measured over a period equal to the remaining non-cancellable term of the lease ( includes the below market fixed renewal period , if applicable ) . capitalized above-market lease values are amortized as a reduction of rental income over the remaining non-cancellable terms of the respective leases . capitalized below-market lease values are amortized as an increase of rental income over the remaining non-cancellable terms of the respective leases , including any fixed-rate renewal periods . other intangible assets also include amounts representing the value of tenant relationships and in-place leases based on our evaluation of the specific characteristics of each tenant 's lease and our overall relationship with the respective tenant . we estimate the cost to execute leases with terms similar to the remaining lease terms of the in-place leases , include leasing commissions , legal and other related expenses . this intangible asset is amortized to expense over the remaining term of the respective leases and any fixed-rate bargain renewal periods . we estimate fair value through methods similar to those used by independent appraisers or by using independent appraisals . factors that we consider in our analysis include an estimate of the carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases . we also consider information obtained about each property as a result of our pre-acquisition due diligence , marketing and leasing activities in estimating the fair value of the tangible and intangible assets acquired . in estimating carrying costs , we include real estate taxes , insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up periods , which primarily range from three to twelve months . characteristics that we consider in allocating value to our tenant relationships include the nature and extent of our business relationship with the tenant , growth prospects for developing new business with the tenant , the tenant 's credit quality and expectations of lease renewals . the value of tenant relationship intangibles is amortized over the remaining initial lease term and expected renewals , but in no event longer than the remaining depreciable life of the building . the value of in-place leases is amortized over the remaining non-cancellable term of the respective leases and any fixed-rate renewal periods . in the event that a tenant terminates its lease prior to the end of the lease term , the unamortized portion of each intangible , including market rate adjustments , in-place lease values and tenant relationship values , would be charged to expense . results of operations the following discussion is based on our consolidated financial statements for the years ended december 31 , 2012 , 2011 and 2010 . we believe that presentation of our consolidated financial information , without a breakdown by segment , will effectively present important information useful to our investors . 45 net operating income ( “ noi ” ) as presented in the comparative analysis below is defined as total revenue less property operating expenses , real estate taxes and third party management expenses . property operating expenses that are included in determining noi consist of costs that are necessary and allocable to our operating properties such as utilities , property-level salaries , repairs and maintenance , property insurance , management fees and bad debt expense . general and administrative expenses that are not reflected in noi primarily consist of corporate-level salaries , amortization of share awards and professional fees that are incurred as part of corporate office management . noi is a non-gaap financial measure that we use internally to evaluate the operating performance of our real estate assets by segment , as presented in note 18 to the consolidated financial statements , and of our business as a whole . we believe noi provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level . while noi is a relevant and widely used measure of operating performance of real estate investment trusts , it does not represent cash flow from operations or net income as defined by gaap and should not be considered as an alternative to those measures in evaluating our liquidity or operating performance . noi also does not reflect general and administrative expenses , interest expenses , real estate impairment losses , depreciation and amortization costs , capital expenditures and leasing costs . trends in development and construction

loss on early extinguishment of debt during 2012 , we repurchased ( i ) $ 150.0 million of term loan indebtedness , ( ii ) $ 99.6 million of our 6.000 % guaranteed notes due 2016 , ( iii ) $ 60.8 million of our 7.500 % guaranteed notes due 2015 , ( iv ) $ 4.3 million of our 5.400 % guaranteed notes due 2014 , and ( v ) $ 0.3 million of our 5.750 % guaranteed notes due 2012 , which resulted in a net loss on early extinguishment of debt of $ 21.9 million . in addition , we prepaid the remaining balances on two of our existing mortgages , totaling $ 58.4 million , for which we incurred associated prepayment penalties of $ 0.1 million . during 2011 , we repurchased ( i ) $ 23.7 million of our 5.750 % guaranteed notes due 2012 and ( ii ) $ 22.7 million of our 7.500 % guaranteed notes due 2015 , which resulted in a net loss on early extinguishment of debt of $ 3.3 million . the loss was offset by the write-off of the unamortized fixed-rate debt premium of $ 0.5 million related to the prepayment of two of our mortgage loans during 2011. discontinued operations during 2012 , we sold one property located in moorestown , new jersey , one property located in herndon , virginia , one property located in carlsbad , california , and 11 flex/office properties located in exton , pennsylvania . these properties had total revenues of $ 7.3 million , property operating expenses of $ 2.6 million , and $ 2.8 million of depreciation and amortization expense . in addition , we recognized a deferred gain related to two properties located in trenton , new jersey that were sold during the fourth quarter of 2009. the gain was deferred as a result of a note receivable that we held from the buyer in the amount of $ 22.5 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. ```loss on early extinguishment of debt during 2012 , we repurchased ( i ) $ 150.0 million of term loan indebtedness , ( ii ) $ 99.6 million of our 6.000 % guaranteed notes due 2016 , ( iii ) $ 60.8 million of our 7.500 % guaranteed notes due 2015 , ( iv ) $ 4.3 million of our 5.400 % guaranteed notes due 2014 , and ( v ) $ 0.3 million of our 5.750 % guaranteed notes due 2012 , which resulted in a net loss on early extinguishment of debt of $ 21.9 million . in addition , we prepaid the remaining balances on two of our existing mortgages , totaling $ 58.4 million , for which we incurred associated prepayment penalties of $ 0.1 million . during 2011 , we repurchased ( i ) $ 23.7 million of our 5.750 % guaranteed notes due 2012 and ( ii ) $ 22.7 million of our 7.500 % guaranteed notes due 2015 , which resulted in a net loss on early extinguishment of debt of $ 3.3 million . the loss was offset by the write-off of the unamortized fixed-rate debt premium of $ 0.5 million related to the prepayment of two of our mortgage loans during 2011. discontinued operations during 2012 , we sold one property located in moorestown , new jersey , one property located in herndon , virginia , one property located in carlsbad , california , and 11 flex/office properties located in exton , pennsylvania . these properties had total revenues of $ 7.3 million , property operating expenses of $ 2.6 million , and $ 2.8 million of depreciation and amortization expense . in addition , we recognized a deferred gain related to two properties located in trenton , new jersey that were sold during the fourth quarter of 2009. the gain was deferred as a result of a note receivable that we held from the buyer in the amount of $ 22.5 million . ``` Suspicious Activity Report : development and redevelopment programs historically , a significant portion of our growth has come from our development and redevelopment efforts . we have a proactive planning process by which we continually evaluate the size , timing , costs and scope of our development and redevelopment programs and , as necessary , scale activity to reflect the economic conditions and the real estate fundamentals that exist in our strategic submarkets . we are currently proceeding on certain redevelopment projects , and we take a cautious and selective approach when determining if a certain development or redevelopment project will benefit our portfolio . in addition , we may be unable to lease committed development or redevelopment properties at expected rental rates or within projected timeframes or complete development or redevelopment properties on schedule or within budgeted amounts , which could adversely affect our financial condition , results of operations and cash flow . financial and operating performance our financial and operating performance is dependent upon the demand for office , industrial and other commercial space in our markets , our leasing results , our acquisition , disposition and development activity , our financing activity , our cash requirements and economic and market conditions , including prevailing interest rates . volatile economic conditions could result in a reduction of the availability of financing and potentially in higher borrowing costs . these factors , coupled with an ongoing economic recovery , have reduced the volume of real estate transactions and created credit 40 stresses on some businesses . vacancy rates may increase , and rental rates may decline , through 2013 and possibly beyond as the current economic climate may negatively impacts tenants . we expect that the impact of the current state of the economy , including high unemployment and potential volatility in the financial and credit markets , could have a dampening effect on the fundamentals of our business , including increases in past due accounts , tenant defaults , lower occupancy and reduced effective rents . these conditions would negatively affect our future net income and cash flows and could have a material adverse effect on our financial condition . we believe that the quality of our assets and our strong balance sheet will enable us to raise debt capital , if necessary , in various forms and from different sources , including traditional term or secured loans from banks , pension funds and life insurance companies . however , there can be no assurance that we will be able to borrow funds on terms that are economically attractive or at all . we seek revenue growth throughout our portfolio by increasing occupancy and rental rates . occupancy at our wholly owned properties at december 31 , 2012 was 88.3 % . the table below summarizes selected operating and leasing statistics of our wholly owned operating properties for the year ended december 31 , 2012 : year ended december 31 , 2012 leasing activity : total net rentable square feet owned ( 1 ) 24,239,296 occupancy percentage ( end of period ) 88.3 % average occupancy percentage 88.3 % new leases and expansions commenced ( square feet ) 1,801,876 leases renewed ( square feet ) 1,716,736 net absorption ( square feet ) ( 2 ) 284,870 percentage change in rental rates per square feet ( 3 ) : new and expansion rental rates 3.8 % renewal rental rates 1.2 % combined rental rates 2.0 % capital costs committed ( 4 ) : leasing commissions ( per square feet ) $ 4.79 tenant improvements ( per square feet ) $ 13.11 ( 1 ) for each period , includes all properties in the core portfolio ( i.e . not under development or redevelopment ) , including properties that were sold during these periods . ( 2 ) includes leasing related to completed developments and redevelopments , as well as sold properties . ( 3 ) rental rates include base rent plus reimbursement for operating expenses and real estate taxes . ( 4 ) calculated on an average basis . in seeking to increase revenue through our operating , financing and investment activities , we also seek to minimize operating risks , including ( i ) tenant rollover risk , ( ii ) tenant credit risk and ( iii ) development risk . tenant rollover risk : we are subject to the risks that tenant leases , upon expiration , are not renewed , that space may not be relet ; and that the terms of renewal or reletting ( including the cost of renovations ) may be less favorable to us than the current lease terms . leases accounting for approximately 8.5 % of our aggregate final annualized base rents as of december 31 , 2012 ( representing approximately 7.7 % of the net rentable square feet of the properties ) expire without penalty in 2013 . we maintain an active dialogue with our tenants in an effort to maximize lease renewals . our retention rate for leases that were scheduled to expire in 2012 was 66.2 % . if we are unable to renew leases or relet space under expiring leases , at anticipated rental rates , or if tenants terminate their leases early , our cash flow would be adversely impacted . 41 tenant credit risk : in the event of a tenant default , we may experience delays in enforcing our rights as a landlord and may incur substantial costs in protecting our investment . our management regularly evaluates our accounts receivable reserve policy in light of our tenant base and general and local economic conditions . our accounts receivable allowance was $ 16.6 million or 10.9 % of total receivables ( including accrued rent receivable ) as of december 31 , 2012 compared to $ 15.5 million or 11.2 % of total receivables ( including accrued rent receivable ) as of december 31 , 2011 . story_separator_special_tag for accrued rent receivables , we consider the results of the evaluation of specific accounts as well as other factors including assigning risk factors to different industries based on our tenants standard industrial classification . considering various factors including assigning a risk factor to different industries , these percentages are based on historical collection and write-off experience adjusted for current market conditions . deferred costs we incur direct costs related to the financing , development and leasing of our properties . management exercises judgment in determining whether such costs , particularly internal costs , meet the criteria for capitalization or must be expensed . capitalized financing fees are amortized over the related loan term on a basis that approximates the effective interest method while capitalized leasing costs are amortized over the related lease term . management re-evaluates the remaining useful lives of leasing costs as the creditworthiness of our tenants and economic and market conditions change . purchase price allocation we allocate the purchase price of properties to net tangible and identified intangible assets acquired based on fair values . above-market and below-market in-place lease values for acquired properties are recorded based on the present value ( using an interest rate which reflects the risks associated with the leases acquired ) of the difference between ( i ) the contractual amounts to be paid pursuant to the in-place leases and ( ii ) our estimate of the fair market lease rates for the corresponding in-place leases , measured over a period equal to the remaining non-cancellable term of the lease ( includes the below market fixed renewal period , if applicable ) . capitalized above-market lease values are amortized as a reduction of rental income over the remaining non-cancellable terms of the respective leases . capitalized below-market lease values are amortized as an increase of rental income over the remaining non-cancellable terms of the respective leases , including any fixed-rate renewal periods . other intangible assets also include amounts representing the value of tenant relationships and in-place leases based on our evaluation of the specific characteristics of each tenant 's lease and our overall relationship with the respective tenant . we estimate the cost to execute leases with terms similar to the remaining lease terms of the in-place leases , include leasing commissions , legal and other related expenses . this intangible asset is amortized to expense over the remaining term of the respective leases and any fixed-rate bargain renewal periods . we estimate fair value through methods similar to those used by independent appraisers or by using independent appraisals . factors that we consider in our analysis include an estimate of the carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases . we also consider information obtained about each property as a result of our pre-acquisition due diligence , marketing and leasing activities in estimating the fair value of the tangible and intangible assets acquired . in estimating carrying costs , we include real estate taxes , insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up periods , which primarily range from three to twelve months . characteristics that we consider in allocating value to our tenant relationships include the nature and extent of our business relationship with the tenant , growth prospects for developing new business with the tenant , the tenant 's credit quality and expectations of lease renewals . the value of tenant relationship intangibles is amortized over the remaining initial lease term and expected renewals , but in no event longer than the remaining depreciable life of the building . the value of in-place leases is amortized over the remaining non-cancellable term of the respective leases and any fixed-rate renewal periods . in the event that a tenant terminates its lease prior to the end of the lease term , the unamortized portion of each intangible , including market rate adjustments , in-place lease values and tenant relationship values , would be charged to expense . results of operations the following discussion is based on our consolidated financial statements for the years ended december 31 , 2012 , 2011 and 2010 . we believe that presentation of our consolidated financial information , without a breakdown by segment , will effectively present important information useful to our investors . 45 net operating income ( “ noi ” ) as presented in the comparative analysis below is defined as total revenue less property operating expenses , real estate taxes and third party management expenses . property operating expenses that are included in determining noi consist of costs that are necessary and allocable to our operating properties such as utilities , property-level salaries , repairs and maintenance , property insurance , management fees and bad debt expense . general and administrative expenses that are not reflected in noi primarily consist of corporate-level salaries , amortization of share awards and professional fees that are incurred as part of corporate office management . noi is a non-gaap financial measure that we use internally to evaluate the operating performance of our real estate assets by segment , as presented in note 18 to the consolidated financial statements , and of our business as a whole . we believe noi provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level . while noi is a relevant and widely used measure of operating performance of real estate investment trusts , it does not represent cash flow from operations or net income as defined by gaap and should not be considered as an alternative to those measures in evaluating our liquidity or operating performance . noi also does not reflect general and administrative expenses , interest expenses , real estate impairment losses , depreciation and amortization costs , capital expenditures and leasing costs . trends in development and construction

factors affecting oil prices include worldwide economic conditions ; geopolitical activities in various regions of the world ; worldwide supply and demand conditions ; weather conditions ; actions taken by the organization of petroleum exporting countries ; and the value of the u.s. dollar in international currency markets . commodity prices remain unpredictable and it is uncertain whether the increase in market prices experienced in recent months will be sustained . as a result , we can not accurately predict future commodity prices and , therefore , can not determine with any degree of certainty what effect increases or decreases in these prices will have on our capital expenditures , production volumes or revenues . in the event that oil , gas and ngls prices significantly decrease , such decreases could have a material adverse effect on our financial condition , the carrying value of our oil and natural gas properties , our proved reserves and our ability to finance operations , including the amount of the borrowing capacity under the alta mesa rbl . the following table sets forth the historical average new york mercantile exchange spot prices : replace_table_token_10_th going concern 39 our present level of indebtedness and the current commodity price environment present challenges to our ability to comply with the covenants in the agreements governing our indebtedness . as a result of the recent decrease in our forecasted production levels , increased operating costs , and pressures created by lower commodity prices , in the absence of one or more deleveraging transactions , we do not anticipate maintaining compliance with the consolidated total leverage ratio covenant in the alta mesa rbl as early as the measurement date of june 30 , 2019. our parent 's board of directors and its financial advisors are evaluating the available financial alternatives , including , without limitation , seeking amendments or waivers to the covenants or other provisions of our indebtedness , raising new capital from the private or public markets or taking other actions to address our capital structure . if we are unable to reach an agreement with our lenders or find acceptable alternative financing , it may lead to an event of default under the alta mesa rbl . if following an event of default , the alta mesa rbl lenders were to accelerate repayment , it may result in an event of default and an acceleration under the 2024 notes . we have concluded that these circumstances create substantial doubt regarding our ability to continue as a going concern . for a more detailed discussion , please read “ item 1a . risk factors . ” derivatives the objective of our hedging program is to produce , over time , relative revenue stability . however , in the short-term , both settlements and fair value changes in our derivatives can significantly impact our results of operations , and we expect these gains and losses to continue to reflect the impact of changes in oil and gas prices . our derivatives are reported at fair value and are sensitive to changes in the price of oil and gas . changes in derivatives are reported as gain ( loss ) on derivatives , which include both the unrealized increase and decrease in their fair value , as well as the effect of realized settlements during the period . for the successor period , we recognized a net loss on our derivatives of $ 10.2 million , which includes $ 39.0 million in cash settlements paid for derivatives . our alta mesa rbl generally has minimum and maximum hedging limits as further described elsewhere . impairments in late fourth quarter of 2018 , the combination of depressed prevailing oil and gas prices , changes to assumed spacing in conjunction with evolving views on the viability of multiple benches and reduced individual well expectations resulted in impairment charges of $ 2.0 billion to our proved and unproved oil and gas properties . individual well expectations were impacted by reductions in estimated reserve recovery of original oil and gas in place . at the time of the business combination , we believed that the stratigraphy underlying our acreage was conducive to development of three distinct benches within the broader mississippian section . proved reserve assumptions at the time of the business combination were based on initial wells drilled in the stack , stated expectations from other operators in the stack as well as analogous results from other resource plays . these proved reserve assumptions included spacing of four wells per section and probable and possible resource assumptions included an incremental three wells per section for a total of seven wells per section . an incremental five wells per section ( for a total of 12 wells per section ) were classified as contingent resources to which no value was assigned in the purchase price allocation for the business combination . we expected all proved and unproved wells to deliver similar results of approximately 250 mbbl of reserve recovery . our 2018 drilling program was executed under these assumptions and by early 2019 , we had 17 different sectional development patterns with six to ten wells per section and meaningful production results . the pattern wells generally produced as expected for the initial 60 days but began to fall below type curve after 90-120 days , which we believe was due to interference associated with the current spacing and benches . story_separator_special_tag if we have adequate liquidity to fund such operations , we expect to drill and bring online approximately 60 wells during 2019 while incurring approximately $ 140.0 million to $ 155.0 million of capital expenditures related to this development program . we also expect that an additional $ 18.0 million to $ 23.0 million could be incurred for non-operated projects , leasehold costs and capitalized workover activity . we do not expect our operating cash flow to provide sufficient proceeds to meet this level of expenditure and we would be required to utilize proceeds from borrowings under the alta mesa rbl , if capacity becomes available to us . during april 2019 , our borrowing base was reduced from $ 400.0 million to $ 370.0 million as part of the semi-annual redetermination . in addition , we drew our remaining capacity to bring our outstanding borrowings to approximately $ 350.0 million and outstanding letters of credit of $ 20.0 million , with approximately $ 86.0 million of cash on hand after completing that borrowing . we did not obtain covenant relief as part of the redetermination , but that remains an important objective for us as we strive to continue to comply with all the terms of our debt . we believe that the combined operating cash flow and cash currently on our balance sheet will be sufficient to allow us to carry out the desired development program , despite the associated negative free cash flow . our ability to reduce well costs and to more precisely assess the productivity of wells under our new spacing design tests are important to our success in 2019 and beyond as we evaluate our future prospects and opportunities . as we execute our business strategy , we will continually monitor the capital resources available to meet future financial obligations and planned capital expenditures . we believe our cash flows provided by operating activities and funds sourced by the alta mesa rbl will allow us to pursue our currently planned development activities . we can not provide assurance that operations and other needed capital will be available on acceptable terms , or at all . a detailed description of our debt including the significant terms and associated requirements is found in item 8 . 51 alta mesa rbl in connection with the consummation of the business combination , all indebtedness at that time under the alta mesa senior secured revolving credit facility was repaid in full and we entered into the alta mesa rbl , which provided an aggregate maximum credit amount of $ 1.0 billion with an initial $ 350.0 million borrowing base , which will be redetermined semi-annually . the alta mesa rbl matures on february 9 , 2023. in april 2018 , the borrowing base was increased to $ 400.0 million , which was reaffirmed by the lenders during the fourth quarter of 2018. as of december 31 , 2018 , in addition to $ 161.0 million of borrowings outstanding , we also had $ 21.9 million of outstanding letters of credit , leaving a total borrowing capacity of $ 217.1 million remaining available for future use . on april 1 , 2019 , the borrowing base was reduced to $ 370.0 million upon completion of the regularly scheduled semi-annual redetermination . during april 2019 , we drew $ 70.0 million to consume all the remaining capacity under the alta mesa rbl . the alta mesa rbl includes usual and customary covenants for facilities of its type and size . the covenants cover matters such as mandatory reserve reports , the responsible operation and maintenance of properties , certifications of compliance , required disclosures to the lenders , notices under other material instruments , and notices of sales of oil and gas properties . it also places limitations on the incurrence of additional indebtedness , restricted payments , distributions , investments outside of the ordinary course of business and the amount of hedges that we can put in place . we are not permitted to borrow funds if we are not in compliance with the financial covenants . the alta mesa rbl bears interest at libor plus an additional margin , based on the percentage of the borrowing base being utilized , ranging from 1.50 % to 2.50 % . there is also a commitment fee that ranges between 0.375 % and 0.50 % on the undrawn borrowing base amounts . the rbl may be prepaid without a premium . interest on outstanding facility debt was libor+2.00 % at december 31 , 2018. the alta mesa rbl has two financial maintenance covenants ( each as determined under the applicable definitions ) : a ratio of current assets to current liabilities of not less than 1.0 ; and a consolidated total leverage ratio of not more than 4.0. during 2019 , we may be unable to satisfy the consolidated total leverage ratio and recognize the need to obtain covenant relief or to replace the alta mesa rbl with debt that would allow us to meet any attendant covenant requirements . in addition , we are currently in default under the alta mesa rbl for our failure to provide certain information by may 15 , 2019 for the fiscal quarter ended march 31 , 2019. the default can be cured by providing the information by june 14 , 2019 . 2024 notes alta mesa has $ 500.0 million in aggregate principal amount of 7.875 % senior unsecured notes ( the “ 2024 notes ” ) that were issued at par by alta mesa and its wholly owned subsidiary alta mesa finance services corp. during the fourth quarter of 2016. the 2024 notes were issued in a private placement but were exchanged for substantially identical registered senior notes in november 2017. the 2024 notes will mature in december 2024 , and interest is payable semi-annually on june 15 and december 15 of each year . alta mesa may , from time to time ,

cash flows replace_table_token_27_th cash flows from operating activities cash provided by operating activities ( including operating activities of discontinued operations ) was $ 93.5 million , $ 26.3 million and $ 59.3 million for the successor period , the 2018 predecessor period and the year ended december 31 , 2017 , respectively . cash-based items of net income ( loss ) , including revenue ( exclusive of unrealized commodity gains or losses ) , operating expenses and taxes , general and administrative expenses , and the cash portion of our interest expense were approximately $ 139.2 million , $ 1.0 million and $ 95.2 million for the successor period , 2018 predecessor period and the year ended december 31 , 2017 , respectively . changes in working capital and other assets and liabilities in a decrease in cash of approximately $ 47.7 million and $ 35.9 million for the successor period and the year ended december 31 , 2017 , respectively . changes in working capital and other assets and liabilities during the 2018 predecessor period resulted in an increase in cash of approximately $ 51.7 million . cash provided by operating activities ( including operating activities of discontinued operations ) was $ 59.3 million and $ 131.7 million for the years ended december 31 , 2017 and 2016 , respectively . the changes in our working capital accounts used $ 35.9 million in cash as compared to having provided $ 28.1 million in cash in 2016 . cash-based items of net income , including revenue ( exclusive of unrealized commodity gains or losses ) , operating expenses and taxes , general and administrative expenses , and the cash portion of our interest expense were approximately $ 95.2 million and $ 103.6 million for the years ended december 31 , 2017 and 2016 , respectively . cash flow from investing activities approximately $ 643.7 million of cash was used by investing activities ( including investing activities from discontinued operations ) in the successor period . $ 37.9 million and $ 345.9 million were for the 2018 predecessor period and 2017 predecessor period , respectively .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash flows replace_table_token_27_th cash flows from operating activities cash provided by operating activities ( including operating activities of discontinued operations ) was $ 93.5 million , $ 26.3 million and $ 59.3 million for the successor period , the 2018 predecessor period and the year ended december 31 , 2017 , respectively . cash-based items of net income ( loss ) , including revenue ( exclusive of unrealized commodity gains or losses ) , operating expenses and taxes , general and administrative expenses , and the cash portion of our interest expense were approximately $ 139.2 million , $ 1.0 million and $ 95.2 million for the successor period , 2018 predecessor period and the year ended december 31 , 2017 , respectively . changes in working capital and other assets and liabilities in a decrease in cash of approximately $ 47.7 million and $ 35.9 million for the successor period and the year ended december 31 , 2017 , respectively . changes in working capital and other assets and liabilities during the 2018 predecessor period resulted in an increase in cash of approximately $ 51.7 million . cash provided by operating activities ( including operating activities of discontinued operations ) was $ 59.3 million and $ 131.7 million for the years ended december 31 , 2017 and 2016 , respectively . the changes in our working capital accounts used $ 35.9 million in cash as compared to having provided $ 28.1 million in cash in 2016 . cash-based items of net income , including revenue ( exclusive of unrealized commodity gains or losses ) , operating expenses and taxes , general and administrative expenses , and the cash portion of our interest expense were approximately $ 95.2 million and $ 103.6 million for the years ended december 31 , 2017 and 2016 , respectively . cash flow from investing activities approximately $ 643.7 million of cash was used by investing activities ( including investing activities from discontinued operations ) in the successor period . $ 37.9 million and $ 345.9 million were for the 2018 predecessor period and 2017 predecessor period , respectively . ``` Suspicious Activity Report : factors affecting oil prices include worldwide economic conditions ; geopolitical activities in various regions of the world ; worldwide supply and demand conditions ; weather conditions ; actions taken by the organization of petroleum exporting countries ; and the value of the u.s. dollar in international currency markets . commodity prices remain unpredictable and it is uncertain whether the increase in market prices experienced in recent months will be sustained . as a result , we can not accurately predict future commodity prices and , therefore , can not determine with any degree of certainty what effect increases or decreases in these prices will have on our capital expenditures , production volumes or revenues . in the event that oil , gas and ngls prices significantly decrease , such decreases could have a material adverse effect on our financial condition , the carrying value of our oil and natural gas properties , our proved reserves and our ability to finance operations , including the amount of the borrowing capacity under the alta mesa rbl . the following table sets forth the historical average new york mercantile exchange spot prices : replace_table_token_10_th going concern 39 our present level of indebtedness and the current commodity price environment present challenges to our ability to comply with the covenants in the agreements governing our indebtedness . as a result of the recent decrease in our forecasted production levels , increased operating costs , and pressures created by lower commodity prices , in the absence of one or more deleveraging transactions , we do not anticipate maintaining compliance with the consolidated total leverage ratio covenant in the alta mesa rbl as early as the measurement date of june 30 , 2019. our parent 's board of directors and its financial advisors are evaluating the available financial alternatives , including , without limitation , seeking amendments or waivers to the covenants or other provisions of our indebtedness , raising new capital from the private or public markets or taking other actions to address our capital structure . if we are unable to reach an agreement with our lenders or find acceptable alternative financing , it may lead to an event of default under the alta mesa rbl . if following an event of default , the alta mesa rbl lenders were to accelerate repayment , it may result in an event of default and an acceleration under the 2024 notes . we have concluded that these circumstances create substantial doubt regarding our ability to continue as a going concern . for a more detailed discussion , please read “ item 1a . risk factors . ” derivatives the objective of our hedging program is to produce , over time , relative revenue stability . however , in the short-term , both settlements and fair value changes in our derivatives can significantly impact our results of operations , and we expect these gains and losses to continue to reflect the impact of changes in oil and gas prices . our derivatives are reported at fair value and are sensitive to changes in the price of oil and gas . changes in derivatives are reported as gain ( loss ) on derivatives , which include both the unrealized increase and decrease in their fair value , as well as the effect of realized settlements during the period . for the successor period , we recognized a net loss on our derivatives of $ 10.2 million , which includes $ 39.0 million in cash settlements paid for derivatives . our alta mesa rbl generally has minimum and maximum hedging limits as further described elsewhere . impairments in late fourth quarter of 2018 , the combination of depressed prevailing oil and gas prices , changes to assumed spacing in conjunction with evolving views on the viability of multiple benches and reduced individual well expectations resulted in impairment charges of $ 2.0 billion to our proved and unproved oil and gas properties . individual well expectations were impacted by reductions in estimated reserve recovery of original oil and gas in place . at the time of the business combination , we believed that the stratigraphy underlying our acreage was conducive to development of three distinct benches within the broader mississippian section . proved reserve assumptions at the time of the business combination were based on initial wells drilled in the stack , stated expectations from other operators in the stack as well as analogous results from other resource plays . these proved reserve assumptions included spacing of four wells per section and probable and possible resource assumptions included an incremental three wells per section for a total of seven wells per section . an incremental five wells per section ( for a total of 12 wells per section ) were classified as contingent resources to which no value was assigned in the purchase price allocation for the business combination . we expected all proved and unproved wells to deliver similar results of approximately 250 mbbl of reserve recovery . our 2018 drilling program was executed under these assumptions and by early 2019 , we had 17 different sectional development patterns with six to ten wells per section and meaningful production results . the pattern wells generally produced as expected for the initial 60 days but began to fall below type curve after 90-120 days , which we believe was due to interference associated with the current spacing and benches . story_separator_special_tag if we have adequate liquidity to fund such operations , we expect to drill and bring online approximately 60 wells during 2019 while incurring approximately $ 140.0 million to $ 155.0 million of capital expenditures related to this development program . we also expect that an additional $ 18.0 million to $ 23.0 million could be incurred for non-operated projects , leasehold costs and capitalized workover activity . we do not expect our operating cash flow to provide sufficient proceeds to meet this level of expenditure and we would be required to utilize proceeds from borrowings under the alta mesa rbl , if capacity becomes available to us . during april 2019 , our borrowing base was reduced from $ 400.0 million to $ 370.0 million as part of the semi-annual redetermination . in addition , we drew our remaining capacity to bring our outstanding borrowings to approximately $ 350.0 million and outstanding letters of credit of $ 20.0 million , with approximately $ 86.0 million of cash on hand after completing that borrowing . we did not obtain covenant relief as part of the redetermination , but that remains an important objective for us as we strive to continue to comply with all the terms of our debt . we believe that the combined operating cash flow and cash currently on our balance sheet will be sufficient to allow us to carry out the desired development program , despite the associated negative free cash flow . our ability to reduce well costs and to more precisely assess the productivity of wells under our new spacing design tests are important to our success in 2019 and beyond as we evaluate our future prospects and opportunities . as we execute our business strategy , we will continually monitor the capital resources available to meet future financial obligations and planned capital expenditures . we believe our cash flows provided by operating activities and funds sourced by the alta mesa rbl will allow us to pursue our currently planned development activities . we can not provide assurance that operations and other needed capital will be available on acceptable terms , or at all . a detailed description of our debt including the significant terms and associated requirements is found in item 8 . 51 alta mesa rbl in connection with the consummation of the business combination , all indebtedness at that time under the alta mesa senior secured revolving credit facility was repaid in full and we entered into the alta mesa rbl , which provided an aggregate maximum credit amount of $ 1.0 billion with an initial $ 350.0 million borrowing base , which will be redetermined semi-annually . the alta mesa rbl matures on february 9 , 2023. in april 2018 , the borrowing base was increased to $ 400.0 million , which was reaffirmed by the lenders during the fourth quarter of 2018. as of december 31 , 2018 , in addition to $ 161.0 million of borrowings outstanding , we also had $ 21.9 million of outstanding letters of credit , leaving a total borrowing capacity of $ 217.1 million remaining available for future use . on april 1 , 2019 , the borrowing base was reduced to $ 370.0 million upon completion of the regularly scheduled semi-annual redetermination . during april 2019 , we drew $ 70.0 million to consume all the remaining capacity under the alta mesa rbl . the alta mesa rbl includes usual and customary covenants for facilities of its type and size . the covenants cover matters such as mandatory reserve reports , the responsible operation and maintenance of properties , certifications of compliance , required disclosures to the lenders , notices under other material instruments , and notices of sales of oil and gas properties . it also places limitations on the incurrence of additional indebtedness , restricted payments , distributions , investments outside of the ordinary course of business and the amount of hedges that we can put in place . we are not permitted to borrow funds if we are not in compliance with the financial covenants . the alta mesa rbl bears interest at libor plus an additional margin , based on the percentage of the borrowing base being utilized , ranging from 1.50 % to 2.50 % . there is also a commitment fee that ranges between 0.375 % and 0.50 % on the undrawn borrowing base amounts . the rbl may be prepaid without a premium . interest on outstanding facility debt was libor+2.00 % at december 31 , 2018. the alta mesa rbl has two financial maintenance covenants ( each as determined under the applicable definitions ) : a ratio of current assets to current liabilities of not less than 1.0 ; and a consolidated total leverage ratio of not more than 4.0. during 2019 , we may be unable to satisfy the consolidated total leverage ratio and recognize the need to obtain covenant relief or to replace the alta mesa rbl with debt that would allow us to meet any attendant covenant requirements . in addition , we are currently in default under the alta mesa rbl for our failure to provide certain information by may 15 , 2019 for the fiscal quarter ended march 31 , 2019. the default can be cured by providing the information by june 14 , 2019 . 2024 notes alta mesa has $ 500.0 million in aggregate principal amount of 7.875 % senior unsecured notes ( the “ 2024 notes ” ) that were issued at par by alta mesa and its wholly owned subsidiary alta mesa finance services corp. during the fourth quarter of 2016. the 2024 notes were issued in a private placement but were exchanged for substantially identical registered senior notes in november 2017. the 2024 notes will mature in december 2024 , and interest is payable semi-annually on june 15 and december 15 of each year . alta mesa may , from time to time ,

we then made the strategic decision to transition our business model from low margin commodity markets to higher margin specialty ingredients markets . we began the transition by first commercializing and supplying farnesene-derived squalane as a cosmetic ingredient to formulators and distributors . we also entered into collaboration and supply agreements for the development and commercialization of molecules within the flavor & fragrance and clean beauty markets . we partner with our customers to create sustainable , high performing , low-cost molecules that replace an ingredient in their supply chains . we commercially scale and manufacture those molecules . our revenue is generated from research and development collaboration programs , grants , renewable product sales , and license and royalty revenues from our renewable product portfolios . all of our non-government partnerships include commercial terms for the supply of molecules we produce at commercial scale . the first molecule to generate revenue for us outside of farnesene was a fragrance molecule launched in 2015. since the launch , this and additional fragrance molecules have continued to generate sales year over year . our partners for these molecules are indicating continued strong growth due to their cost advantaged position , high purity of our molecules and our sustainable production method . in 2019 , we commercially produced and shipped our reb m product that is an alternative sweetener and sugar replacement for food and beverages . in 2020 , we added a total of six new ingredients to our portfolio . we have a pipeline that can deliver an estimated two to three new molecules each year over the coming years . our time to market for molecules has decreased from seven years to less than a year for our most recent molecule , mainly due to our ability to leverage our biotechnology platform with proprietary computational tools , strain construction tools , screening and analytics tools , and advanced lab automation and data integration . our state-of-the-art infrastructure includes industry-leading strain engineering and lab automation located in emeryville , california , pilot-scale production facilities in emeryville , california and campinas , brazil , a demonstration-scale facility in campinas , brazil and a commercial scale production facility in leland , north carolina ( owned and operated by our aprinnova joint venture ) . we are able to use a wide variety of feedstocks for production but have focused on sourcing brazilian sugarcane for our large-scale production because of its renewability , low cost and relative price stability . we are constructing a new purpose-built , large-scale specialty ingredients facility in brazil , which we anticipate will allow for the manufacture of up to five products concurrently , including both our specialty ingredients portfolio and our alternative sweetener product . in september 2019 , we obtained the necessary permits and broke ground for this facility and we expect construction to be completed by the end of 2021. during construction , we continue to manufacture our products at manufacturing sites in brazil , the u.s. and europe . sales and revenue we recognize revenue from product sales , license fees and royalties , and grants and collaborations . we have research and development collaboration arrangements for which we receive payments from our collaboration partners , which include darpa , koninklijke dsm n.v. ( dsm ) , firmenich sa ( firmenich ) , givaudan international sa ( givaudan ) , yifan pharmaceutical co. ltd. ( yifan ) and others . some of our collaboration arrangements provide for advance payments to us in consideration for grants of exclusivity or research efforts that we will perform . our collaboration agreements , which may require us to achieve milestones prior to receiving payments , are expected to contribute revenues from product sales and royalties if and when they are commercialized . see note 10 , “ revenue recognition ” in part ii , item 8 of this annual report on form 10-k for additional information . we have several other collaboration molecules in our development pipeline with partners including dsm , givaudan , firmenich and yifan that we expect will contribute revenues from product sales and royalties if and when they are commercialized . covid-19 business update we have been closely monitoring the impact of the global covid-19 pandemic on all aspects of our business , including how it has and will impact our employees , partners , supply chain , and distribution network . since the start of the pandemic in early 2020 , we developed a comprehensive response strategy including establishing a cross-functional covid-19 task force and implementing business continuity plans to manage the impact of the covid-19 pandemic on our employees and our business . we have applied recommended public health strategies designed to prevent the spread of covid-19 and have been 40 focused on the health and welfare of our employees . we have successfully managed to sustain ongoing critical production campaigns and infrastructure while staying in compliance with state and county public health orders . accordingly , since the end of the first quarter of 2020 , we have initiated several precautions in accordance with local regulations and guidelines to mitigate the spread of covid-19 infection across our businesses , which has impacted the way we carry out our business , including additional sanitation and cleaning procedures in our laboratories and other facilities , on-site covid-19 testing , temperature and symptom confirmations , instituting remote working when possible , and implementing social distancing and staggered worktime requirements for our employees who must work on-site . our plans to reopen our sites and enable a broad return to work in our offices , laboratories and production facilities will continue to follow local public health plans and guidelines . story_separator_special_tag 42 the swing from a gain to a loss in change in fair value of derivative instruments was primarily due to a 95 % increase in our stock price during 2020 ; see note 3 , `` fair value measurement `` in part ii , item 8 of this annual report on form 10-k for details regarding our outstanding derivative instruments . the loss upon extinguishment of debt for the year ended december 31 , 2020 was the result of debt modifications and restructuring which required the write-off of significant unamortized debt discount balances and expensing of the fair value of equity instruments granted or modified in connection with the debt settlement or modification . the reduction in interest expense was primarily due to a decrease in debt discount accretion , along with lower average debt principal balances during 2020 as compared to the prior year . income taxes for the years ended december 31 , 2020 and 2019 , we recorded income tax expense of $ 0.3 million and $ 0.6 million related to accrued interest on uncertain tax positions . see note 13 , `` income taxes `` in part ii , item 8 of this annual report on form 10-k for additional information . liquidity and capital resources replace_table_token_5_th liquidity we have incurred operating losses since our inception , and we expect to continue to incur losses and negative cash flows from operations through at least the next 12 months following the issuance of this annual report on form 10-k. as of december 31 , 2020 , we had negative working capital of $ 16.5 million , an accumulated deficit of $ 2.1 billion , and cash and cash equivalents of $ 30.2 million . as of december 31 , 2020 , the principal amounts due under our debt instruments ( including related party debt ) totaled $ 170.5 million , of which $ 56.5 million is classified as current . our debt agreements contain various covenants , including certain restrictions on our business — including restrictions on additional indebtedness , material adverse effect and cross default provisions — that could cause us to be at risk of default . a failure to comply with the covenants and other provisions of our debt instruments , including any failure to make payments when required , would generally result in events of default under such instruments , which could result in the acceleration of a substantial portion of such indebtedness . acceleration would generally also constitute an event of default under our other outstanding debt instruments , which could result in the acceleration of a substantial portion of our debt repayment obligations . during 2020 we failed to meet certain covenants under several credit arrangements , including those associated with missed payments , cross-default provisions , minimum liquidity and minimum asset coverage requirements . these lenders provided permanent waivers to us for breaches of all past covenant violations and cross-default payment failures under the respective credit agreements , and significantly reduced the minimum liquidity requirement and substantially increased the base of eligible assets to calculate the asset coverage requirement . cash and cash equivalents of $ 30.2 million as of december 31 , 2020 are not sufficient to fund expected future negative cash flows from operations and cash debt service obligations through march 2022. these factors raise substantial doubt about our ability to continue as a going concern within one year after the date that the financial statements in this annual report on form 10-k are issued . the consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty . our ability to continue as a going concern will depend , in large part , on our ability to minimize the anticipated negative cash flows from operations during the 12 months from the date of this filing and to raise additional proceeds through strategic transactions , financings , and refinance or extend other existing debt maturities that will occur in june 2021 ( $ 10 million as of the date of this filing ) , all of which are uncertain and outside of our control . 43 our operating plan for 2021 contemplates a significant reduction in net operating cash outflows as compared to the year ended december 31 , 2020 , resulting from ( i ) revenue growth from sales of existing and new products with positive gross margins , ( ii ) reduced production costs as a result of manufacturing and technical developments , ( iii ) the monetization of certain assets , ( iv ) an increase in cash inflows from collaboration and grants and licenses and royalties , and ( v ) lower debt servicing expense . our operating plan for 2021 also contemplates funding the construction and launch of our new specialty ingredients fermentation facility in brazil , which will most likely require financing that is significantly above any potential to generate excess cash flows from operations . if we are unable to generate sufficient cash inflows from product sales , licenses and collaboration arrangements , we will need to obtain additional funding from new equity or debt financings , which may not occur timely or on reasonable terms , if at all , and agree to burdensome covenants , grant further security interests in our assets , enter into collaboration and licensing arrangements that require us to relinquish commercial rights , or grant licenses on terms that are not favorable . if we do not achieve our planned operating results , we may need to take the following actions to support our liquidity needs in 2021 : shift focus to existing products and customers with significantly reduced investment in new product and commercial development efforts ; reduce expenditures for employees and third-party contractors , including consultants , professional advisors and other vendors ; reduce or delay uncommitted capital expenditures , including expenditures related the construction and commissioning of the new production facility in brazil , nonessential

cash flows from operating activities our primary uses of cash from operating activities are for personnel costs and costs related to the production and sales of our products , offset by cash received from sales to customers . for the year ended december 31 , 2020 , net cash used in operating activities was $ 175.8 million , which was primarily comprised of our $ 326.9 million net loss and a decrease of $ 54.4 million in working capital , partly offset by $ 205.5 million of non-cash charges . non-cash charges were primarily comprised of an $ 89.8 million loss from change in fair value of debt , a $ 52.0 million loss upon extinguishment of debt , $ 13.7 million of stock-based compensation expense , an $ 11.4 million loss from change in fair value of derivative instruments and $ 10.5 million of non-cash interest expense in connection with the release of pre-delivery shares to a debt holder in connection with a previous debt issuance . the decrease in working capital was primarily comprised of a $ 24.2 million increase in accounts receivable , a $ 16.2 million increase in inventories and a $ 4.0 million increase in contract assets .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash flows from operating activities our primary uses of cash from operating activities are for personnel costs and costs related to the production and sales of our products , offset by cash received from sales to customers . for the year ended december 31 , 2020 , net cash used in operating activities was $ 175.8 million , which was primarily comprised of our $ 326.9 million net loss and a decrease of $ 54.4 million in working capital , partly offset by $ 205.5 million of non-cash charges . non-cash charges were primarily comprised of an $ 89.8 million loss from change in fair value of debt , a $ 52.0 million loss upon extinguishment of debt , $ 13.7 million of stock-based compensation expense , an $ 11.4 million loss from change in fair value of derivative instruments and $ 10.5 million of non-cash interest expense in connection with the release of pre-delivery shares to a debt holder in connection with a previous debt issuance . the decrease in working capital was primarily comprised of a $ 24.2 million increase in accounts receivable , a $ 16.2 million increase in inventories and a $ 4.0 million increase in contract assets . ``` Suspicious Activity Report : we then made the strategic decision to transition our business model from low margin commodity markets to higher margin specialty ingredients markets . we began the transition by first commercializing and supplying farnesene-derived squalane as a cosmetic ingredient to formulators and distributors . we also entered into collaboration and supply agreements for the development and commercialization of molecules within the flavor & fragrance and clean beauty markets . we partner with our customers to create sustainable , high performing , low-cost molecules that replace an ingredient in their supply chains . we commercially scale and manufacture those molecules . our revenue is generated from research and development collaboration programs , grants , renewable product sales , and license and royalty revenues from our renewable product portfolios . all of our non-government partnerships include commercial terms for the supply of molecules we produce at commercial scale . the first molecule to generate revenue for us outside of farnesene was a fragrance molecule launched in 2015. since the launch , this and additional fragrance molecules have continued to generate sales year over year . our partners for these molecules are indicating continued strong growth due to their cost advantaged position , high purity of our molecules and our sustainable production method . in 2019 , we commercially produced and shipped our reb m product that is an alternative sweetener and sugar replacement for food and beverages . in 2020 , we added a total of six new ingredients to our portfolio . we have a pipeline that can deliver an estimated two to three new molecules each year over the coming years . our time to market for molecules has decreased from seven years to less than a year for our most recent molecule , mainly due to our ability to leverage our biotechnology platform with proprietary computational tools , strain construction tools , screening and analytics tools , and advanced lab automation and data integration . our state-of-the-art infrastructure includes industry-leading strain engineering and lab automation located in emeryville , california , pilot-scale production facilities in emeryville , california and campinas , brazil , a demonstration-scale facility in campinas , brazil and a commercial scale production facility in leland , north carolina ( owned and operated by our aprinnova joint venture ) . we are able to use a wide variety of feedstocks for production but have focused on sourcing brazilian sugarcane for our large-scale production because of its renewability , low cost and relative price stability . we are constructing a new purpose-built , large-scale specialty ingredients facility in brazil , which we anticipate will allow for the manufacture of up to five products concurrently , including both our specialty ingredients portfolio and our alternative sweetener product . in september 2019 , we obtained the necessary permits and broke ground for this facility and we expect construction to be completed by the end of 2021. during construction , we continue to manufacture our products at manufacturing sites in brazil , the u.s. and europe . sales and revenue we recognize revenue from product sales , license fees and royalties , and grants and collaborations . we have research and development collaboration arrangements for which we receive payments from our collaboration partners , which include darpa , koninklijke dsm n.v. ( dsm ) , firmenich sa ( firmenich ) , givaudan international sa ( givaudan ) , yifan pharmaceutical co. ltd. ( yifan ) and others . some of our collaboration arrangements provide for advance payments to us in consideration for grants of exclusivity or research efforts that we will perform . our collaboration agreements , which may require us to achieve milestones prior to receiving payments , are expected to contribute revenues from product sales and royalties if and when they are commercialized . see note 10 , “ revenue recognition ” in part ii , item 8 of this annual report on form 10-k for additional information . we have several other collaboration molecules in our development pipeline with partners including dsm , givaudan , firmenich and yifan that we expect will contribute revenues from product sales and royalties if and when they are commercialized . covid-19 business update we have been closely monitoring the impact of the global covid-19 pandemic on all aspects of our business , including how it has and will impact our employees , partners , supply chain , and distribution network . since the start of the pandemic in early 2020 , we developed a comprehensive response strategy including establishing a cross-functional covid-19 task force and implementing business continuity plans to manage the impact of the covid-19 pandemic on our employees and our business . we have applied recommended public health strategies designed to prevent the spread of covid-19 and have been 40 focused on the health and welfare of our employees . we have successfully managed to sustain ongoing critical production campaigns and infrastructure while staying in compliance with state and county public health orders . accordingly , since the end of the first quarter of 2020 , we have initiated several precautions in accordance with local regulations and guidelines to mitigate the spread of covid-19 infection across our businesses , which has impacted the way we carry out our business , including additional sanitation and cleaning procedures in our laboratories and other facilities , on-site covid-19 testing , temperature and symptom confirmations , instituting remote working when possible , and implementing social distancing and staggered worktime requirements for our employees who must work on-site . our plans to reopen our sites and enable a broad return to work in our offices , laboratories and production facilities will continue to follow local public health plans and guidelines . story_separator_special_tag 42 the swing from a gain to a loss in change in fair value of derivative instruments was primarily due to a 95 % increase in our stock price during 2020 ; see note 3 , `` fair value measurement `` in part ii , item 8 of this annual report on form 10-k for details regarding our outstanding derivative instruments . the loss upon extinguishment of debt for the year ended december 31 , 2020 was the result of debt modifications and restructuring which required the write-off of significant unamortized debt discount balances and expensing of the fair value of equity instruments granted or modified in connection with the debt settlement or modification . the reduction in interest expense was primarily due to a decrease in debt discount accretion , along with lower average debt principal balances during 2020 as compared to the prior year . income taxes for the years ended december 31 , 2020 and 2019 , we recorded income tax expense of $ 0.3 million and $ 0.6 million related to accrued interest on uncertain tax positions . see note 13 , `` income taxes `` in part ii , item 8 of this annual report on form 10-k for additional information . liquidity and capital resources replace_table_token_5_th liquidity we have incurred operating losses since our inception , and we expect to continue to incur losses and negative cash flows from operations through at least the next 12 months following the issuance of this annual report on form 10-k. as of december 31 , 2020 , we had negative working capital of $ 16.5 million , an accumulated deficit of $ 2.1 billion , and cash and cash equivalents of $ 30.2 million . as of december 31 , 2020 , the principal amounts due under our debt instruments ( including related party debt ) totaled $ 170.5 million , of which $ 56.5 million is classified as current . our debt agreements contain various covenants , including certain restrictions on our business — including restrictions on additional indebtedness , material adverse effect and cross default provisions — that could cause us to be at risk of default . a failure to comply with the covenants and other provisions of our debt instruments , including any failure to make payments when required , would generally result in events of default under such instruments , which could result in the acceleration of a substantial portion of such indebtedness . acceleration would generally also constitute an event of default under our other outstanding debt instruments , which could result in the acceleration of a substantial portion of our debt repayment obligations . during 2020 we failed to meet certain covenants under several credit arrangements , including those associated with missed payments , cross-default provisions , minimum liquidity and minimum asset coverage requirements . these lenders provided permanent waivers to us for breaches of all past covenant violations and cross-default payment failures under the respective credit agreements , and significantly reduced the minimum liquidity requirement and substantially increased the base of eligible assets to calculate the asset coverage requirement . cash and cash equivalents of $ 30.2 million as of december 31 , 2020 are not sufficient to fund expected future negative cash flows from operations and cash debt service obligations through march 2022. these factors raise substantial doubt about our ability to continue as a going concern within one year after the date that the financial statements in this annual report on form 10-k are issued . the consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty . our ability to continue as a going concern will depend , in large part , on our ability to minimize the anticipated negative cash flows from operations during the 12 months from the date of this filing and to raise additional proceeds through strategic transactions , financings , and refinance or extend other existing debt maturities that will occur in june 2021 ( $ 10 million as of the date of this filing ) , all of which are uncertain and outside of our control . 43 our operating plan for 2021 contemplates a significant reduction in net operating cash outflows as compared to the year ended december 31 , 2020 , resulting from ( i ) revenue growth from sales of existing and new products with positive gross margins , ( ii ) reduced production costs as a result of manufacturing and technical developments , ( iii ) the monetization of certain assets , ( iv ) an increase in cash inflows from collaboration and grants and licenses and royalties , and ( v ) lower debt servicing expense . our operating plan for 2021 also contemplates funding the construction and launch of our new specialty ingredients fermentation facility in brazil , which will most likely require financing that is significantly above any potential to generate excess cash flows from operations . if we are unable to generate sufficient cash inflows from product sales , licenses and collaboration arrangements , we will need to obtain additional funding from new equity or debt financings , which may not occur timely or on reasonable terms , if at all , and agree to burdensome covenants , grant further security interests in our assets , enter into collaboration and licensing arrangements that require us to relinquish commercial rights , or grant licenses on terms that are not favorable . if we do not achieve our planned operating results , we may need to take the following actions to support our liquidity needs in 2021 : shift focus to existing products and customers with significantly reduced investment in new product and commercial development efforts ; reduce expenditures for employees and third-party contractors , including consultants , professional advisors and other vendors ; reduce or delay uncommitted capital expenditures , including expenditures related the construction and commissioning of the new production facility in brazil , nonessential

despite contractual product development commitments and the potential to receive future payments from our collaborators , we anticipate that , without taking into account deferred revenue , we will continue to incur losses for the foreseeable future , and we anticipate that our losses will increase as we continue our development of , and seek regulatory approval for , our product candidates . if we do not successfully develop and obtain regulatory approval of our existing product candidates or any future product candidates and effectively manufacture , market , and sell any products that are approved , we may never generate revenue from product sales . furthermore , even if we do generate revenue from product sales , we may never again achieve or sustain profitability on a quarterly or annual basis . our prior losses , combined with expected future losses , have had and will continue to have an adverse effect on our stockholders ' equity and working capital . our failure to become and remain profitable could depress the market price of our class a common stock and could impair our ability to raise capital , expand our business , diversify our product offerings , or continue our operations . the probability of success for each of our product candidates and clinical programs and our ability to generate product revenue and become profitable depend upon a variety of factors , including the quality of the product candidate , clinical results , investment in the program , competition , manufacturing capability , commercial viability , and our collaborators ' ability to successfully execute our development and commercialization plans . we will also require additional capital through equity or debt financings in order to fund our operations and execute on our business plans , and there is no assurance that such financing will be available to us on commercially reasonable terms or at all . for a description of the numerous risks and uncertainties associated with product development and raising additional capital , see “ risk factors ” included in this annual report . financial operations overview revenue our revenue to date has been generated primarily from licensing fees received under our collaborative license agreements and reimbursements for expenses . we currently have no approved products and have not generated any revenue from the sale of products to date . in 81 the future , we may generate revenue from product sales , royalties on product sales , reimbursements for collaboration services under our current collaboration agree ments , or license fees , milestones , or other upfront payments if we enter into any new collaborations or license agreements . we expect that our future revenue will fluctuate from quarter to quarter for many reasons , including the uncertain timing and amoun t of any such payments and sales . our license and milestone revenue has been generated primarily from our collaborative licensing agreements with abbvie and khk and consists of upfront payments and milestone payments . under our revenue recognition policy , license revenue associated with upfront , non-refundable license payments received under the collaboration agreements with abbvie and khk are recognized ratably over the expected term of the performance obligations under the agreements , which extend through various periods beginning in 2017 and ending in 2026. license revenue recorded with respect to the collaboration agreements with abbvie consists solely of the recognition of deferred revenue . license revenue recorded with respect to the collaboration agreements with khk consists of the recognition of deferred revenue and reimbursement of supply costs . we also have other license revenue , which consists of milestone payments from a disease advocacy organization in 2015 , and other revenue , which consists of reimbursements from khk for expenses incurred to obtain drug supplies . research and development expenses the largest component of our total operating expenses has historically been our investment in research and development activities , including the clinical development of our product candidates . from our inception through december 31 , 2016 , we have incurred a total of $ 478.2 million in research and development expense , a majority of which relates to the development of bardoxolone methyl and omaveloxolone . we expect our research and development expense to continue to increase in the future as we advance our product candidates through clinical trials and expand our product candidate portfolio . the process of conducting the necessary clinical research to obtain regulatory approval is costly and time-consuming and we consider the active management and development of our clinical pipeline to be crucial to our long-term success . the actual probability of success for each product candidate and preclinical program may be affected by a variety of factors , including the safety and efficacy data for product candidates , investment in the program , competition , manufacturing capability , and commercial viability . research and development expenses include : expenses incurred under agreements with clinical trial sites that conduct research and development activities on our behalf ; expenses incurred under contract research agreements and other agreements with third parties ; employee and consultant-related expenses , which include salaries , benefits , travel , and stock-based compensation ; laboratory and vendor expenses related to the execution of preclinical and non-clinical studies , and clinical trials ; the cost of acquiring , developing , manufacturing , and distributing clinical trial materials ; and facilities , depreciation , and other expenses , which include direct and allocated expenses for rent and maintenance of facilities , insurance , and other supply costs . research and development costs are expensed as incurred . costs for certain development activities such as clinical trials are recognized based on an evaluation of the progress to completion of specific tasks using information and data provided to us by our vendors and our clinical sites . story_separator_special_tag 3. if the arrangement includes a general right of return relative to the delivered item , delivery or performance of the undelivered item or items is considered probable and substantially in the control of the vendor . 88 both the khk agreement and the abbvie l icense agreement were executed prior to january 1 , 2011 , and contained both delivered and undelivered elements in the arrangements . we view the key elements of these arrangements as being the exclusive licenses to khk and abbvie and participation on joint steering committees . our involvement in the joint steering committees established under each of these agreements was assessed to determine whether the involvement is an obligation or a right to participate . based on this assessment , we concluded that invol vement in the joint steering committees was a substantive deliverable of the arrangement . we concluded that objective and reliable evidence of the fair value of the undelivered element of these arrangements ( participation on joint steering committees ) did not exist ; therefore , we are accounting for these arrangements as a single unit of accounting . we are recognizing revenue associated with the nonrefundable , up-front license fees received under the khk agreement and the abbvie license agreement ratably over the expected term of the joint steering committee performance obligations , which we estimate will be delivered through december 2021 and november 2017 for the khk agreement and the abbvie license agreement , respectively . we continue to participate in regular meetings for the joint steering committees established under the khk agreement and the abbvie license agreement . at this time , we believe our participation in these committees continues to be a substantive performance obligation of the agreements and has concluded that no changes in the estimated revenue recognition periods are warranted . deferred revenue arises from the excess of cash received over cumulative revenue recognized over the terms of our continuing obligations . both the khk agreement and the abbvie license agreement contain certain clinical development , regulatory , and sales milestones . we evaluated each of these milestones at inception of the respective arrangements and concluded that they were substantive milestones , and accordingly , we will recognize payments related to the achievement of such milestones , if any , when milestones or net sales levels are achieved and collection is reasonably assured . factors considered in this determination included scientific and regulatory risks that must be overcome to achieve each milestone , the level of effort and investment required to achieve each milestone , and the monetary value attributed to each milestone . in october 2009 , the financial accounting standards board , or fasb , issued accounting standards update , or asu , no . 2009-13 , multiple-deliverable revenue arrangements , which amended accounting standards codification , or asc , 605-25 , revenue recognition , to eliminate the requirement to obtain vendor-specific objective evidence of the fair value of undelivered elements in order to separate the deliverables into different units of accounting . we adopted this revised guidance as of january 1 , 2011 , and applied this guidance to the collaboration agreement with abbvie executed in december 2011. this guidance is also required to be applied to any material modifications that may be made to the existing khk agreement or abbvie license agreement , of which there were none in 2016 or 2015. we identified the following deliverables within the collaboration agreement with abbvie : the various exclusive , co-exclusive , and non-exclusive license grants to abbvie by us related to our molecules and to jointly discovered new molecules and to us by abbvie related to jointly discovered new molecules ; the substantive participation in the joint research and development incubator committee established by the agreement ; and the collaboration agreement to jointly develop and commercialize second-generation nrf2 activators , including participation in the joint executive committee , joint development committees , and joint marketing committees established by the agreement . we evaluated the deliverables within the collaboration agreement with abbvie and concluded that the only delivered element of the arrangement , the license grants , does not have value to abbvie on a stand-alone basis . accordingly , we concluded that the various elements of the arrangement can not be separated into different units of accounting . therefore , we are recognizing revenue associated with the nonrefundable , up-front payment over the estimated 15-year term necessary to execute the joint research , development , and commercialization terms under the agreement . research and development costs all research and development costs are expensed as incurred , including costs for drug supplies used in research and development or clinical trials , property and equipment acquired specifically for a finite research and development project , and nonrefundable deposits incurred at the initiation of research and development activities . research and development costs consist principally of costs related to clinical trials managed directly by the company and through contract research organizations , manufacture of clinical drug products for clinical trials , preclinical study costs , discovery research expenses , facilities costs , salaries , and related expenses . 89 as part of the process of recording research and development costs , we are required to estimate and accrue expenses , the largest of which are research and development expenses . this process involves the following : communicating with appropriate internal personnel to identify services that have been performed on our behalf and estimating the level of service performed and the associated cost incurred for the service when we have not yet been invoiced or otherwise notified of actual cost ; estimating and accruing expenses in our consolidated financial statements as of each balance sheet date based on facts and circumstances known to us at the time ; and periodically confirming the accuracy of our estimates with service providers and making adjustments , if necessary . examples of estimated research and development expenses that we accrue

liquidity and capital resources since our inception , we have funded our operations primarily through collaboration and license agreements and the sale of preferred stock . to date , we have raised gross cash proceeds of $ 476.6 million through the sale of convertible preferred stock and $ 750.0 million from payments under license and collaboration agreements . we also obtained $ 60.9 million in net proceeds from our initial public offering of our class a common stock . we have not generated any revenue from the sale of any products . as of december 31 , 2016 , we had available cash and cash equivalents of approximately $ 84.7 million . our cash and cash equivalents are invested in accordance with our investment policy , primarily with a view to liquidity and capital preservation . cash flows the following table sets forth the primary sources and uses of cash for the years ended december 31 : replace_table_token_17_th 85 operating activities net cash used by operating activities was $ 19.3 million for the year ended december 31 , 2016 , consisting primarily of net loss of $ 6.2 million adjusted for non-cash items including stock-based compensation expense of $ 2.4 million , depreciation expense of $ 0.7 million , and a net decrease in operating assets and liabilities of $ 16.2 million . the significant items in the change in operating assets and liabilities include an increase of prepaid expenses and other current assets of $ 1.7 million due to prepayments on trial and other operating expenses and reimbursements due from khk , an increase in accrued direct research and other current liabilities of $ 3.1 million due to clinical trial activities , a decrease in income tax receivable of $ 31.9 million due to tax refunds received , and a decrease in deferred revenue of $ 49.7 million . the decrease in deferred revenue relates to the timing of upfront payments and ratable recognition of revenue over the expected term of the performance obligations under our collaboration agreements with abbvie and khk , resulting in recognition of $ 49.7 million of license and milestone revenue .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources since our inception , we have funded our operations primarily through collaboration and license agreements and the sale of preferred stock . to date , we have raised gross cash proceeds of $ 476.6 million through the sale of convertible preferred stock and $ 750.0 million from payments under license and collaboration agreements . we also obtained $ 60.9 million in net proceeds from our initial public offering of our class a common stock . we have not generated any revenue from the sale of any products . as of december 31 , 2016 , we had available cash and cash equivalents of approximately $ 84.7 million . our cash and cash equivalents are invested in accordance with our investment policy , primarily with a view to liquidity and capital preservation . cash flows the following table sets forth the primary sources and uses of cash for the years ended december 31 : replace_table_token_17_th 85 operating activities net cash used by operating activities was $ 19.3 million for the year ended december 31 , 2016 , consisting primarily of net loss of $ 6.2 million adjusted for non-cash items including stock-based compensation expense of $ 2.4 million , depreciation expense of $ 0.7 million , and a net decrease in operating assets and liabilities of $ 16.2 million . the significant items in the change in operating assets and liabilities include an increase of prepaid expenses and other current assets of $ 1.7 million due to prepayments on trial and other operating expenses and reimbursements due from khk , an increase in accrued direct research and other current liabilities of $ 3.1 million due to clinical trial activities , a decrease in income tax receivable of $ 31.9 million due to tax refunds received , and a decrease in deferred revenue of $ 49.7 million . the decrease in deferred revenue relates to the timing of upfront payments and ratable recognition of revenue over the expected term of the performance obligations under our collaboration agreements with abbvie and khk , resulting in recognition of $ 49.7 million of license and milestone revenue . ``` Suspicious Activity Report : despite contractual product development commitments and the potential to receive future payments from our collaborators , we anticipate that , without taking into account deferred revenue , we will continue to incur losses for the foreseeable future , and we anticipate that our losses will increase as we continue our development of , and seek regulatory approval for , our product candidates . if we do not successfully develop and obtain regulatory approval of our existing product candidates or any future product candidates and effectively manufacture , market , and sell any products that are approved , we may never generate revenue from product sales . furthermore , even if we do generate revenue from product sales , we may never again achieve or sustain profitability on a quarterly or annual basis . our prior losses , combined with expected future losses , have had and will continue to have an adverse effect on our stockholders ' equity and working capital . our failure to become and remain profitable could depress the market price of our class a common stock and could impair our ability to raise capital , expand our business , diversify our product offerings , or continue our operations . the probability of success for each of our product candidates and clinical programs and our ability to generate product revenue and become profitable depend upon a variety of factors , including the quality of the product candidate , clinical results , investment in the program , competition , manufacturing capability , commercial viability , and our collaborators ' ability to successfully execute our development and commercialization plans . we will also require additional capital through equity or debt financings in order to fund our operations and execute on our business plans , and there is no assurance that such financing will be available to us on commercially reasonable terms or at all . for a description of the numerous risks and uncertainties associated with product development and raising additional capital , see “ risk factors ” included in this annual report . financial operations overview revenue our revenue to date has been generated primarily from licensing fees received under our collaborative license agreements and reimbursements for expenses . we currently have no approved products and have not generated any revenue from the sale of products to date . in 81 the future , we may generate revenue from product sales , royalties on product sales , reimbursements for collaboration services under our current collaboration agree ments , or license fees , milestones , or other upfront payments if we enter into any new collaborations or license agreements . we expect that our future revenue will fluctuate from quarter to quarter for many reasons , including the uncertain timing and amoun t of any such payments and sales . our license and milestone revenue has been generated primarily from our collaborative licensing agreements with abbvie and khk and consists of upfront payments and milestone payments . under our revenue recognition policy , license revenue associated with upfront , non-refundable license payments received under the collaboration agreements with abbvie and khk are recognized ratably over the expected term of the performance obligations under the agreements , which extend through various periods beginning in 2017 and ending in 2026. license revenue recorded with respect to the collaboration agreements with abbvie consists solely of the recognition of deferred revenue . license revenue recorded with respect to the collaboration agreements with khk consists of the recognition of deferred revenue and reimbursement of supply costs . we also have other license revenue , which consists of milestone payments from a disease advocacy organization in 2015 , and other revenue , which consists of reimbursements from khk for expenses incurred to obtain drug supplies . research and development expenses the largest component of our total operating expenses has historically been our investment in research and development activities , including the clinical development of our product candidates . from our inception through december 31 , 2016 , we have incurred a total of $ 478.2 million in research and development expense , a majority of which relates to the development of bardoxolone methyl and omaveloxolone . we expect our research and development expense to continue to increase in the future as we advance our product candidates through clinical trials and expand our product candidate portfolio . the process of conducting the necessary clinical research to obtain regulatory approval is costly and time-consuming and we consider the active management and development of our clinical pipeline to be crucial to our long-term success . the actual probability of success for each product candidate and preclinical program may be affected by a variety of factors , including the safety and efficacy data for product candidates , investment in the program , competition , manufacturing capability , and commercial viability . research and development expenses include : expenses incurred under agreements with clinical trial sites that conduct research and development activities on our behalf ; expenses incurred under contract research agreements and other agreements with third parties ; employee and consultant-related expenses , which include salaries , benefits , travel , and stock-based compensation ; laboratory and vendor expenses related to the execution of preclinical and non-clinical studies , and clinical trials ; the cost of acquiring , developing , manufacturing , and distributing clinical trial materials ; and facilities , depreciation , and other expenses , which include direct and allocated expenses for rent and maintenance of facilities , insurance , and other supply costs . research and development costs are expensed as incurred . costs for certain development activities such as clinical trials are recognized based on an evaluation of the progress to completion of specific tasks using information and data provided to us by our vendors and our clinical sites . story_separator_special_tag 3. if the arrangement includes a general right of return relative to the delivered item , delivery or performance of the undelivered item or items is considered probable and substantially in the control of the vendor . 88 both the khk agreement and the abbvie l icense agreement were executed prior to january 1 , 2011 , and contained both delivered and undelivered elements in the arrangements . we view the key elements of these arrangements as being the exclusive licenses to khk and abbvie and participation on joint steering committees . our involvement in the joint steering committees established under each of these agreements was assessed to determine whether the involvement is an obligation or a right to participate . based on this assessment , we concluded that invol vement in the joint steering committees was a substantive deliverable of the arrangement . we concluded that objective and reliable evidence of the fair value of the undelivered element of these arrangements ( participation on joint steering committees ) did not exist ; therefore , we are accounting for these arrangements as a single unit of accounting . we are recognizing revenue associated with the nonrefundable , up-front license fees received under the khk agreement and the abbvie license agreement ratably over the expected term of the joint steering committee performance obligations , which we estimate will be delivered through december 2021 and november 2017 for the khk agreement and the abbvie license agreement , respectively . we continue to participate in regular meetings for the joint steering committees established under the khk agreement and the abbvie license agreement . at this time , we believe our participation in these committees continues to be a substantive performance obligation of the agreements and has concluded that no changes in the estimated revenue recognition periods are warranted . deferred revenue arises from the excess of cash received over cumulative revenue recognized over the terms of our continuing obligations . both the khk agreement and the abbvie license agreement contain certain clinical development , regulatory , and sales milestones . we evaluated each of these milestones at inception of the respective arrangements and concluded that they were substantive milestones , and accordingly , we will recognize payments related to the achievement of such milestones , if any , when milestones or net sales levels are achieved and collection is reasonably assured . factors considered in this determination included scientific and regulatory risks that must be overcome to achieve each milestone , the level of effort and investment required to achieve each milestone , and the monetary value attributed to each milestone . in october 2009 , the financial accounting standards board , or fasb , issued accounting standards update , or asu , no . 2009-13 , multiple-deliverable revenue arrangements , which amended accounting standards codification , or asc , 605-25 , revenue recognition , to eliminate the requirement to obtain vendor-specific objective evidence of the fair value of undelivered elements in order to separate the deliverables into different units of accounting . we adopted this revised guidance as of january 1 , 2011 , and applied this guidance to the collaboration agreement with abbvie executed in december 2011. this guidance is also required to be applied to any material modifications that may be made to the existing khk agreement or abbvie license agreement , of which there were none in 2016 or 2015. we identified the following deliverables within the collaboration agreement with abbvie : the various exclusive , co-exclusive , and non-exclusive license grants to abbvie by us related to our molecules and to jointly discovered new molecules and to us by abbvie related to jointly discovered new molecules ; the substantive participation in the joint research and development incubator committee established by the agreement ; and the collaboration agreement to jointly develop and commercialize second-generation nrf2 activators , including participation in the joint executive committee , joint development committees , and joint marketing committees established by the agreement . we evaluated the deliverables within the collaboration agreement with abbvie and concluded that the only delivered element of the arrangement , the license grants , does not have value to abbvie on a stand-alone basis . accordingly , we concluded that the various elements of the arrangement can not be separated into different units of accounting . therefore , we are recognizing revenue associated with the nonrefundable , up-front payment over the estimated 15-year term necessary to execute the joint research , development , and commercialization terms under the agreement . research and development costs all research and development costs are expensed as incurred , including costs for drug supplies used in research and development or clinical trials , property and equipment acquired specifically for a finite research and development project , and nonrefundable deposits incurred at the initiation of research and development activities . research and development costs consist principally of costs related to clinical trials managed directly by the company and through contract research organizations , manufacture of clinical drug products for clinical trials , preclinical study costs , discovery research expenses , facilities costs , salaries , and related expenses . 89 as part of the process of recording research and development costs , we are required to estimate and accrue expenses , the largest of which are research and development expenses . this process involves the following : communicating with appropriate internal personnel to identify services that have been performed on our behalf and estimating the level of service performed and the associated cost incurred for the service when we have not yet been invoiced or otherwise notified of actual cost ; estimating and accruing expenses in our consolidated financial statements as of each balance sheet date based on facts and circumstances known to us at the time ; and periodically confirming the accuracy of our estimates with service providers and making adjustments , if necessary . examples of estimated research and development expenses that we accrue

credit conditions have continued to improve with increased access and availability to secured mortgage debt and the unsecured bond and equity markets . lending institutions continue to maintain tighter credit standards for individual and small business lending , making it difficult for individuals and local retailers ( including our tenants ) to obtain financing . in addition , continued depression of home values has caused individuals to utilize home equity as a source of funding for small businesses . this shortage of financing has caused , among other things , some consumers to have less disposable income available for retail spending . the shortage of financing has also made it difficult for some of our tenants to obtain capital to operate their businesses . · lower home values and increased home foreclosures : the decline in u.s. home values started to level out in 2011 , but difficult economic conditions have also contributed to a record number of home foreclosures . the u.s. continues to experience historically high levels of delinquencies and foreclosures . · continued high unemployment rates : the u.s. unemployment rate has declined in recent months ( to 8.3 % in january 2012 ) but continues to be higher than historical levels . continued high unemployment rates could cause further decreases in consumer spending , thereby negatively affecting the businesses of our retail tenants . we continue to focus on markets where household income within a five mile radius of our properties is higher than statewide levels . as an example , the average household income within a five mile radius of our indiana properties is approximately $ 89,000 compared to a statewide average of approximately $ 71,000. during 2011 , job growth and consumer spending improved somewhat from historically low levels experienced during the recent recession . in addition , some retailers reported improving same store sale results during the holiday season . however , it is uncertain if these improvements will continue , level off or reverse themselves . lower consumer spending has a negative impact on the businesses of our retail tenants . while we did experience strong leasing activity in 2011 , to the extent these conditions persist or deteriorate further , our tenants may be required to curtail or cease their operations , which could materially and negatively affect our business in general and our cash flow in particular . impact of economy on reits , including us as an owner and developer of community and neighborhood shopping centers , our operating and financial performance is directly affected by economic conditions in the retail sector of those markets in which our operating centers and development properties are located , including the states of indiana , florida and texas , where the majority of our operating properties are located , and in north carolina , where a significant portion of our development projects are located . as discussed above , due to the challenges facing u.s. consumers , the operations of many of our retail tenants could be negatively affected . this could in turn have a negative impact on our business based on , but not limited to , the following : 42 · difficulty in collecting rent ; rent adjustments . when consumers spend less , our tenants typically experience decreased revenues and cash flows . this makes it more difficult for some of our local and regional tenants to pay their rent obligations , which is the primary source of our revenues . our tenants ' decreased cash flows may be even more pronounced if , given the tight credit markets , they are unable to obtain financing to operate their businesses . the number of tenants requesting decreases or deferrals in their rent obligations declined in 2011 in comparison to 2010 and 2009 ; however , there can be no assurance that this trend will continue . if granted , such decreases or deferrals negatively affect our cash flows . · termination of leases . if our tenants find it difficult to meet their rental obligations , they may be forced to terminate their leases with us . during 2011 , tenants at some of our properties terminated their leases with us . in some cases , we were able to secure replacement tenants at rental rates comparable to or greater than the rates of the terminated tenants . · tenant bankruptcies . the number of bankruptcies by u.s. businesses has decreased from the historically high levels experienced during recent years . while we have seen a decrease over the past year in tenant bankruptcies , we have continued to experience bankruptcy levels higher than our historically normal levels , a trend which may continue into the foreseeable future . for example , sears holdings , which leases 111,000 square feet at sunland town center in texas and accounts for 1.1 % of annualized base rent , has recently announced it is closing 100 stores . the store at our center is not among those identified by sears ; however , there is no assurance that this will continue to be the case in the future . as of january 31 , 2012 , this tenant was current on its rent payments . · decrease in demand for retail space . demand for retail space at our shopping centers and at our in-process developments continued to improve in 2011 , most notably from national and regional retailers . demand from local , small shop merchants has remained soft , reflecting the difficulty such potential tenants have securing financing for working capital and expansion plans . while our leasing activity remained high and the overall leased percentage of our retail shopping centers increased in 2011 overall demand for retail space may not continue and may decline in the future until financial markets , consumer confidence , and the economy stabilize for an extended period of time . story_separator_special_tag comparison of operating results for the years ended december 31 , 2011 and 2010 the following table reflects income statement line items from our consolidated statements of operations for the years ended december 31 , 2011 and 2010 : 50 replace_table_token_24_th rental income ( including tenant reimbursements ) increased between years by $ 7.8 million , or 8.7 % , due to the following : replace_table_token_25_th excluding the changes due to transitioned development properties , acquired properties , and the properties under redevelopment , the net $ 3.1 million increase in rental income for our properties was primarily related to the following : · $ 1.4 million increase in base rental revenue due to improved occupancy levels at operating properties along with improved rent spreads on new and renewal leases . in addition , to the increased rent payments from these new and existing tenants , these commencements met co-tenancy requirements at two operating properties , favorably impacting billable rents to other tenants ; and 51 · $ 1.7 million increase in recovery income due to increase in recoverable expenses of $ 1.7 million along with improvement in recovery rates due to improved occupancy levels . for the overall portfolio , the gross recovery ratio improved from 71.8 % in 2010 to 74.3 % in 2011 , primarily due to the improved occupancy level of the operating portfolio . the gross recovery ratio is computed by dividing tenant reimbursements by the sum of recoverable property operating expense and real estate tax expense . other property related revenue primarily consists of parking revenues , percentage rent , lease settlement income and gains from land sales . this revenue decreased $ 0.8 million , or 16 % , primarily as a result of lower gains on land sales of $ 2.4 million due to lower volume of residential land sales at eddy street commons in 2011 and no retail outlot sales in 2011 as compared to three outlot sales in 2010. this decrease was partially offset by an increase in termination fees of $ 0.7 million and insurance recovery income of $ 0.7 million . the majority of the termination fee relates to the previous tenant at oleander pointe . construction revenue and service fees decreased by $ 6.5 million , or 95 % , as a result of a decline in third party construction contracts and construction management fees due to our strategic decision to reduce third party construction activity . property operating expenses increased between years by $ 0.9 million , or 5.2 % , due to the following : replace_table_token_26_th excluding the changes due to transitioned development properties , acquired properties , and the properties under redevelopment , the net $ 0.2 million decrease in property operating expenses for our properties was primarily due to the following : · $ 0.2 million net decrease in bad debt expense at a number of our operating properties reflecting a general recovery in the economic condition of our tenants ; · $ 0.2 million decrease in snow removal costs offset by $ 0.1 million increases in repairs and maintenance and $ 0.1 million increase in landscaping costs ; and · the change in other categories of expense were not individually significant . real estate taxes increased $ 1.8 million , or 14.8 % , due to the following : replace_table_token_27_th 52 excluding the changes due to transitioned development properties , acquired properties , and the properties under redevelopment , the net $ 1.0 million increase in real estate taxes for our properties was primarily due to increased assessments of the taxable value at a number of our operating properties . the majority of the increases and decreases in our real estate tax expense from increased assessments and subsequent appeals is recoverable from ( or reimbursable to ) tenants and , therefore , reflected in tenant reimbursement revenue . cost of construction and services decreased $ 5.8 million , or 95 % , as a result of a decline in third party construction contracts and construction management fees due to our strategic decision to reduce third party construction activity . general , administrative and other expenses increased $ 0.9 million , or 17 % , due to an increase in personnel-related expenses along with an increase in other public company related costs . depreciation and amortization expense decreased $ 3.7 million , or 9 % , due to the following : replace_table_token_28_th accelerated depreciation and amortization expense of $ 5.7 million was recorded in the prior year due to the commencement of redevelopment at rivers edge and coral springs plaza . redevelopment plans for these properties were finalized during the second quarter of 2010 , resulting in a reduction of useful lives of certain assets that were scheduled to be demolished . these decreases in depreciation and amortization were partially offset by an increase of $ 2.0 million related to acquired properties , transition of development properties to the operating portfolio , and timing of lease commencement at fully operational properties . of this $ 2.0 million , $ 1.5 million was due to accelerated depreciation on the redevelopment of oleander pointe that commenced in the second quarter of 2011. interest expense decreased $ 3.2 million , or 11 % . this decrease was primarily due to reduction of indebtedness from the proceeds of our december 2010 preferred stock issuance . this decrease was partially offset by a higher interest rate on the company 's line of credit and increased amortization of deferred financing fees related to current year borrowings and the company 's objective of terming out debt on recently completed projects . income tax benefit ( expense ) of our taxable reit subsidiary changed from an expense of $ 266,000 in 2010 to a benefit of $ 1,000 in 2011. the 2010 expense was due to income to our taxable reit subsidiary related to the sale of residential assets at the eddy street commons development in 2010. the slight benefit in

primarily debt 52,000 lithia crossing tampa , fl june 2011 13.3 primarily debt 81,504 1 this property was purchased with the intent to redevelop ; therefore , it is included in our redevelopment activities , as discussed below . however , for purposes of the comparison of operating results , this property is classified as property acquired during 2011 in the comparison of operating results tables below . 2 upon completion of redevelopment activities , the owned gla is expected to be 43,800 square feet . operating property disposition activities during the year ended december 31 , 2011 , we sold the operating properties listed in the table below . we did not sell any operating properties in the years ended december 31 , 2010 and 2009. however , in 2009 , we conveyed the title on the galleria plaza operating property in dallas , texas to the ground lessor and recognized a non-cash impairment charge of $ 5.4 million . the operating results of galleria plaza are reflected as discontinued operations in the accompanying consolidated statements of operations . 47 property name msa disposition date owned gla martinsville shops 1 indianapolis , in december 2011 10,886 eddy street commons limited service hotel 2 south bend , in november 2011 n/a 1 we realized net proceeds of $ 1.5 million from the sale of this property and recognized a loss on the sale of $ 0.4 million . the majority of the net proceeds from the sale of this property were used to pay down borrowings under our unsecured revolving credit facility . 2 we held a 50 % interest in this unconsolidated joint venture . in november 2011 , the joint venture sold this property for $ 17.5 million , resulting in a total gain on sale of $ 8.3 million . a portion of the net proceeds from the sale of this property were utilized to retire the $ 9.5 million construction loan , and the remaining proceeds were distributed to the partners . we used our share of the net proceeds to pay down borrowings under our unsecured 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. ```primarily debt 52,000 lithia crossing tampa , fl june 2011 13.3 primarily debt 81,504 1 this property was purchased with the intent to redevelop ; therefore , it is included in our redevelopment activities , as discussed below . however , for purposes of the comparison of operating results , this property is classified as property acquired during 2011 in the comparison of operating results tables below . 2 upon completion of redevelopment activities , the owned gla is expected to be 43,800 square feet . operating property disposition activities during the year ended december 31 , 2011 , we sold the operating properties listed in the table below . we did not sell any operating properties in the years ended december 31 , 2010 and 2009. however , in 2009 , we conveyed the title on the galleria plaza operating property in dallas , texas to the ground lessor and recognized a non-cash impairment charge of $ 5.4 million . the operating results of galleria plaza are reflected as discontinued operations in the accompanying consolidated statements of operations . 47 property name msa disposition date owned gla martinsville shops 1 indianapolis , in december 2011 10,886 eddy street commons limited service hotel 2 south bend , in november 2011 n/a 1 we realized net proceeds of $ 1.5 million from the sale of this property and recognized a loss on the sale of $ 0.4 million . the majority of the net proceeds from the sale of this property were used to pay down borrowings under our unsecured revolving credit facility . 2 we held a 50 % interest in this unconsolidated joint venture . in november 2011 , the joint venture sold this property for $ 17.5 million , resulting in a total gain on sale of $ 8.3 million . a portion of the net proceeds from the sale of this property were utilized to retire the $ 9.5 million construction loan , and the remaining proceeds were distributed to the partners . we used our share of the net proceeds to pay down borrowings under our unsecured revolving credit facility . ``` Suspicious Activity Report : credit conditions have continued to improve with increased access and availability to secured mortgage debt and the unsecured bond and equity markets . lending institutions continue to maintain tighter credit standards for individual and small business lending , making it difficult for individuals and local retailers ( including our tenants ) to obtain financing . in addition , continued depression of home values has caused individuals to utilize home equity as a source of funding for small businesses . this shortage of financing has caused , among other things , some consumers to have less disposable income available for retail spending . the shortage of financing has also made it difficult for some of our tenants to obtain capital to operate their businesses . · lower home values and increased home foreclosures : the decline in u.s. home values started to level out in 2011 , but difficult economic conditions have also contributed to a record number of home foreclosures . the u.s. continues to experience historically high levels of delinquencies and foreclosures . · continued high unemployment rates : the u.s. unemployment rate has declined in recent months ( to 8.3 % in january 2012 ) but continues to be higher than historical levels . continued high unemployment rates could cause further decreases in consumer spending , thereby negatively affecting the businesses of our retail tenants . we continue to focus on markets where household income within a five mile radius of our properties is higher than statewide levels . as an example , the average household income within a five mile radius of our indiana properties is approximately $ 89,000 compared to a statewide average of approximately $ 71,000. during 2011 , job growth and consumer spending improved somewhat from historically low levels experienced during the recent recession . in addition , some retailers reported improving same store sale results during the holiday season . however , it is uncertain if these improvements will continue , level off or reverse themselves . lower consumer spending has a negative impact on the businesses of our retail tenants . while we did experience strong leasing activity in 2011 , to the extent these conditions persist or deteriorate further , our tenants may be required to curtail or cease their operations , which could materially and negatively affect our business in general and our cash flow in particular . impact of economy on reits , including us as an owner and developer of community and neighborhood shopping centers , our operating and financial performance is directly affected by economic conditions in the retail sector of those markets in which our operating centers and development properties are located , including the states of indiana , florida and texas , where the majority of our operating properties are located , and in north carolina , where a significant portion of our development projects are located . as discussed above , due to the challenges facing u.s. consumers , the operations of many of our retail tenants could be negatively affected . this could in turn have a negative impact on our business based on , but not limited to , the following : 42 · difficulty in collecting rent ; rent adjustments . when consumers spend less , our tenants typically experience decreased revenues and cash flows . this makes it more difficult for some of our local and regional tenants to pay their rent obligations , which is the primary source of our revenues . our tenants ' decreased cash flows may be even more pronounced if , given the tight credit markets , they are unable to obtain financing to operate their businesses . the number of tenants requesting decreases or deferrals in their rent obligations declined in 2011 in comparison to 2010 and 2009 ; however , there can be no assurance that this trend will continue . if granted , such decreases or deferrals negatively affect our cash flows . · termination of leases . if our tenants find it difficult to meet their rental obligations , they may be forced to terminate their leases with us . during 2011 , tenants at some of our properties terminated their leases with us . in some cases , we were able to secure replacement tenants at rental rates comparable to or greater than the rates of the terminated tenants . · tenant bankruptcies . the number of bankruptcies by u.s. businesses has decreased from the historically high levels experienced during recent years . while we have seen a decrease over the past year in tenant bankruptcies , we have continued to experience bankruptcy levels higher than our historically normal levels , a trend which may continue into the foreseeable future . for example , sears holdings , which leases 111,000 square feet at sunland town center in texas and accounts for 1.1 % of annualized base rent , has recently announced it is closing 100 stores . the store at our center is not among those identified by sears ; however , there is no assurance that this will continue to be the case in the future . as of january 31 , 2012 , this tenant was current on its rent payments . · decrease in demand for retail space . demand for retail space at our shopping centers and at our in-process developments continued to improve in 2011 , most notably from national and regional retailers . demand from local , small shop merchants has remained soft , reflecting the difficulty such potential tenants have securing financing for working capital and expansion plans . while our leasing activity remained high and the overall leased percentage of our retail shopping centers increased in 2011 overall demand for retail space may not continue and may decline in the future until financial markets , consumer confidence , and the economy stabilize for an extended period of time . story_separator_special_tag comparison of operating results for the years ended december 31 , 2011 and 2010 the following table reflects income statement line items from our consolidated statements of operations for the years ended december 31 , 2011 and 2010 : 50 replace_table_token_24_th rental income ( including tenant reimbursements ) increased between years by $ 7.8 million , or 8.7 % , due to the following : replace_table_token_25_th excluding the changes due to transitioned development properties , acquired properties , and the properties under redevelopment , the net $ 3.1 million increase in rental income for our properties was primarily related to the following : · $ 1.4 million increase in base rental revenue due to improved occupancy levels at operating properties along with improved rent spreads on new and renewal leases . in addition , to the increased rent payments from these new and existing tenants , these commencements met co-tenancy requirements at two operating properties , favorably impacting billable rents to other tenants ; and 51 · $ 1.7 million increase in recovery income due to increase in recoverable expenses of $ 1.7 million along with improvement in recovery rates due to improved occupancy levels . for the overall portfolio , the gross recovery ratio improved from 71.8 % in 2010 to 74.3 % in 2011 , primarily due to the improved occupancy level of the operating portfolio . the gross recovery ratio is computed by dividing tenant reimbursements by the sum of recoverable property operating expense and real estate tax expense . other property related revenue primarily consists of parking revenues , percentage rent , lease settlement income and gains from land sales . this revenue decreased $ 0.8 million , or 16 % , primarily as a result of lower gains on land sales of $ 2.4 million due to lower volume of residential land sales at eddy street commons in 2011 and no retail outlot sales in 2011 as compared to three outlot sales in 2010. this decrease was partially offset by an increase in termination fees of $ 0.7 million and insurance recovery income of $ 0.7 million . the majority of the termination fee relates to the previous tenant at oleander pointe . construction revenue and service fees decreased by $ 6.5 million , or 95 % , as a result of a decline in third party construction contracts and construction management fees due to our strategic decision to reduce third party construction activity . property operating expenses increased between years by $ 0.9 million , or 5.2 % , due to the following : replace_table_token_26_th excluding the changes due to transitioned development properties , acquired properties , and the properties under redevelopment , the net $ 0.2 million decrease in property operating expenses for our properties was primarily due to the following : · $ 0.2 million net decrease in bad debt expense at a number of our operating properties reflecting a general recovery in the economic condition of our tenants ; · $ 0.2 million decrease in snow removal costs offset by $ 0.1 million increases in repairs and maintenance and $ 0.1 million increase in landscaping costs ; and · the change in other categories of expense were not individually significant . real estate taxes increased $ 1.8 million , or 14.8 % , due to the following : replace_table_token_27_th 52 excluding the changes due to transitioned development properties , acquired properties , and the properties under redevelopment , the net $ 1.0 million increase in real estate taxes for our properties was primarily due to increased assessments of the taxable value at a number of our operating properties . the majority of the increases and decreases in our real estate tax expense from increased assessments and subsequent appeals is recoverable from ( or reimbursable to ) tenants and , therefore , reflected in tenant reimbursement revenue . cost of construction and services decreased $ 5.8 million , or 95 % , as a result of a decline in third party construction contracts and construction management fees due to our strategic decision to reduce third party construction activity . general , administrative and other expenses increased $ 0.9 million , or 17 % , due to an increase in personnel-related expenses along with an increase in other public company related costs . depreciation and amortization expense decreased $ 3.7 million , or 9 % , due to the following : replace_table_token_28_th accelerated depreciation and amortization expense of $ 5.7 million was recorded in the prior year due to the commencement of redevelopment at rivers edge and coral springs plaza . redevelopment plans for these properties were finalized during the second quarter of 2010 , resulting in a reduction of useful lives of certain assets that were scheduled to be demolished . these decreases in depreciation and amortization were partially offset by an increase of $ 2.0 million related to acquired properties , transition of development properties to the operating portfolio , and timing of lease commencement at fully operational properties . of this $ 2.0 million , $ 1.5 million was due to accelerated depreciation on the redevelopment of oleander pointe that commenced in the second quarter of 2011. interest expense decreased $ 3.2 million , or 11 % . this decrease was primarily due to reduction of indebtedness from the proceeds of our december 2010 preferred stock issuance . this decrease was partially offset by a higher interest rate on the company 's line of credit and increased amortization of deferred financing fees related to current year borrowings and the company 's objective of terming out debt on recently completed projects . income tax benefit ( expense ) of our taxable reit subsidiary changed from an expense of $ 266,000 in 2010 to a benefit of $ 1,000 in 2011. the 2010 expense was due to income to our taxable reit subsidiary related to the sale of residential assets at the eddy street commons development in 2010. the slight benefit in

the fda has granted qualified infectious disease product ( qidp ) and fast track designations to ibrexafungerp for the indications of vvc ( including the treatment of vvc episodes and the prevention of recurrent vvc ) , invasive candidiasis ( ic ) ( including candidemia ) , and invasive aspergillosis ( ia ) , and has granted orphan drug designations for the ic and ia indications . these designations may provide us with additional market exclusivity and expedited regulatory paths . ibrexafungerp update we recently announced that the fda has accepted for filing our nda for ibrexafungerp for the treatment of vvc , also known as vaginal yeast infections . the fda has granted this application priority review , a designation which is granted to applications for potential drugs that , if approved , would be significant improvements in the safety or effectiveness of the treatment of serious conditions when compared to standard applications . under the pdufa , the fda has set a target action date of june 1 , 2021. additionally , the fda has communicated that it is not currently planning to hold an advisory committee meeting to discuss the application . the nda is supported by positive results from two phase 3 , randomized , double-blind , placebo-controlled , multi-center studies ( vanish-303 and vanish-306 ) , in which oral ibrexafungerp demonstrated statistically superior efficacy and a favorable tolerability profile in women with vvc . enrollment is complete in the candle study , a phase 3 , multi-center , randomized , double-blind , placebo-controlled trial designed to evaluate the efficacy and safety of oral ibrexafungerp for the prevention of recurrent vvc , for which there is no approved therapy in the u.s. as a result of the covid-19 pandemic , our timelines for reaching our targeted enrollment size in the candle study were slightly extended and we now anticipate both top-line data and a potential supplemental nda submission for the prevention of recurrent vvc in the first half of 2022 , resulting in a potential approval in late 2022. enrollment is ongoing in our refractory invasive fungal infections ( rifi ) program , which comprises two open-label phase 3 studies ( furi and cares ) designed to support a potential future nda submission through the limited population pathway for antibacterial and antifungal drugs ( lpad ) , as well as our phase 2 study ( scynergia study ) of oral ibrexafungerp in combination with voriconazole ( soc ) in patients with ia . similar to interim analyses of data previously reported , we intend to analyze the data of patients that have completed the treatment course in our furi and cares studies and announce these findings when complete . 41 we have successfully completed preclinical testing of our liposomal iv formulation of ibrexafungerp and we are advancing the program into human trials in healthy volunteers . the first trial is being conducted as a phase 1 , randomized , double-blind , placebo-controlled study to evaluate the safety , tolerability , and pharmacokinetics of the iv liposomal formulation of ibrexafungerp in healthy subjects . the study is being conducted in south africa and dosing started in march 2021. corporate update on december 2 , 2020 , we amended our license agreement with merck sharp & dohme corp. ( merck ) , dated may 24 , 2013. the amendment eliminates two cash milestone payments that we would have paid to merck upon the first filing of a nda , triggered by the fda acceptance for filing of our nda for ibrexafungerp for the treatment of vvc , and first marketing approval in the u.s. , anticipated in june 2021 for our nda for ibrexafungerp for the treatment of vvc . such cash milestone payments would have been creditable against future royalties owed to merck on net sales of ibrexafungerp . with the amendment , these milestones will not be paid in cash and , accordingly , credits will not accrue . pursuant to the amendment , we will also forfeit the credits against future royalties that it had accrued from a prior milestone payment already paid to merck . all other key terms of the license agreement are unchanged . on december 17 , 2020 , we completed a public offering ( the december 2020 public offering ) of our common stock and warrants pursuant to our effective shelf registration . we sold an aggregate of ( a ) 8,340,000 shares of our common stock , par value $ 0.001 per share , ( b ) pre-funded warrants , in lieu of common stock , to purchase 5,260,000 shares of our common stock , par value $ 0.001 per share , and ( c ) two series of warrants , which will accompany the common stock or pre-funded warrants , to purchase up to an aggregate of 13,600,000 shares of our common stock and received approximately $ 79.5 million in net proceeds . in february 2021 , we partnered with amplity inc. ( amplity ) for the potential upcoming commercial launch of ibrexafungerp for the treatment of vvc . under the terms of the 5-year agreement , we will utilize amplity 's commercial execution expertise and resources for sales force , remote engagement , training , market access and select operations services . we will maintain full ownership of ibrexafungerp and control of all strategic aspects of the launch . amplity is deferring a portion of its direct service costs in the first two years ( 2021 and 2022 ) , which we will repay over three years starting in 2023. amplity has the potential to earn a performance-based success fee in the 2023-2025 time frame by exceeding certain revenue targets . story_separator_special_tag additionally , pursuant to the note purchase agreement , we issued and sold to puissance $ 16.0 million aggregate principal amount of our march 2019 notes , resulting in $ 14.7 million in net proceeds after deducting an advisory fee and other issuance costs , and we used the net proceeds to pay the remaining outstanding solar term loan in full . as part of the payment of the outstanding balance of the solar term loan , we paid $ 0.8 million in debt extinguishment costs which comprised the remaining unamortized discount and issuance costs associated with the solar term loan prior to repayment . future funding requirements to date , we have not generated any revenue from product sales . we do not know when , or if , we will generate any revenue from product sales . we do not expect to generate significant revenue from product sales unless and until we obtain regulatory approval of and commercialize ibrexafungerp . in addition , we expect to incur expenses in connection with our ongoing development activities , particularly as we continue the research , development and clinical trials of , and seek regulatory approval for , our product candidates . we anticipate that we will need substantial additional funding in connection with our continuing future operations . based upon our existing operating plan , we believe that our existing cash and cash equivalents , the sale of a portion of our new jersey nols , the upfront payment from hansoh , and anticipated sales of brexafemme will enable us to fund our operating requirements into 2023. these funds will also be sufficient to enable us to commercially launch brexafemme for the treatment of vaginal yeast infections , if approved , and complete the development activities for the candle study . however , we are continually evaluating our operating plan and assessing the optimal cash utilization for our ibrexafungerp development strategy . we have based our estimates on assumptions that may prove to be wrong , and we may use our available capital resources sooner than we currently expect . because of the numerous risks and uncertainties associated with the development and commercialization of product candidates , we are unable to estimate the amounts of increased capital outlays and operating expenses necessary to complete the development of product candidates . our future capital requirements will depend on many factors , including : the progress , costs , and the clinical research and development of ibrexafungerp ; the outcome , costs and timing of seeking and obtaining fda and any other regulatory approvals ; the ability of our product candidates to progress through clinical development successfully ; our need to expand our research and development activities ; the costs associated with securing , establishing and maintaining commercialization and manufacturing capabilities ; our ability to maintain , expand and defend the scope of our intellectual property portfolio , including the amount and timing of any payments we may be required to make , or that we may receive , in connection with the licensing , filing , prosecution , defense and enforcement of any patents or other intellectual property rights ; our need and ability to hire additional management and scientific and medical personnel ; 47 our need to implement additional , as well as to enhance existing , internal systems and infrastructure , including financial and reporting processes and systems ; and the economic and other terms , timing and success of our existing licensing arrangements and any collaboration , licensing or other arrangements into which we may enter in the future . until such time , if ever , as we can generate substantial revenue from product sales , we expect to finance our cash needs through a combination of net proceeds from equity offerings , debt financings , or other non-dilutive third-party funding ( e.g . , grants , new jersey technology business tax certificate transfer ( nol ) program ) , strategic alliances and licensing arrangements . to the extent that we raise additional capital through the sale of equity or convertible debt securities , the ownership interests of our common stockholders will be diluted , and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our common stockholders . debt financing , similar to our previous loan agreement with solar or the convertible senior notes we sold in march 2019 and april 2020 , if available , may involve agreements that include covenants limiting or restricting our ability to take specific actions , such as incurring additional debt , making capital expenditures or declaring dividends . if we raise additional funds through sales of assets , other third-party funding , strategic alliances and licensing or collaboration arrangements with third parties , we may have to relinquish valuable rights to our technologies , future revenue streams , research programs or product candidates or to grant licenses on terms that may not be favorable to us . off-balance sheet arrangements during the periods presented we did not have , nor do we currently have , any off-balance sheet arrangements as defined under sec rules . 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 we have prepared in accordance with accounting principles generally accepted in the united states , or gaap . the preparation of our consolidated financial statements requires us to make judgments , estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of our consolidated financial statements , as well as the reported revenues and expenses during the reported periods . we evaluate these estimates and judgments on an ongoing basis . we base our assumptions and estimates on historical experience and on various other factors that we believe are reasonable under the

sources of liquidity as of december 31 , 2020 , we had cash and cash equivalents of approximately $ 93.0 million , compared to cash , cash equivalents , and short-term investments of $ 48.4 million as of december 31 , 2019. the increase in our cash and cash equivalents was primarily due to the funds raised in our december 2020 public offering of our common stock and warrants and through our atm and aspire facilities , the sale of our april 2020 notes , the cash receipt of $ 3.1 million received in 2020 for the sale of a portion of our new jersey nols , offset in part by the continued development costs associated with our lead product candidate , ibrexafungerp . we have incurred net losses since our inception , including the year ended december 31 , 2020. as of december 31 , 2020 , our accumulated deficit was $ 326.6 million . we anticipate that we will continue to incur losses for at least the next several years . as a result , we will need additional capital to fund our operations , which we may obtain through one or more of equity offerings , debt financings , or other non-dilutive third-party funding ( e.g. , grants , new jersey technology business tax certificate transfer ( nol ) program ) , strategic alliances and licensing or collaboration arrangements . we may offer shares of our common stock pursuant to our form s-3 shelf registration statements . for the year ended december 31 , 2020 , we received net proceeds of $ 4.8 million , under our atm facility . in april 2020 and march 2019 , we sold to puissance life science opportunities fund vi ( puissance ) $ 10.0 million and $ 16.0 million aggregate principal amount of our convertible senior notes ( notes ) , respectively . see note 7 to our consolidated financial statements for the year ended december 31 , 2020 , included in this annual report for further details .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 liquidity as of december 31 , 2020 , we had cash and cash equivalents of approximately $ 93.0 million , compared to cash , cash equivalents , and short-term investments of $ 48.4 million as of december 31 , 2019. the increase in our cash and cash equivalents was primarily due to the funds raised in our december 2020 public offering of our common stock and warrants and through our atm and aspire facilities , the sale of our april 2020 notes , the cash receipt of $ 3.1 million received in 2020 for the sale of a portion of our new jersey nols , offset in part by the continued development costs associated with our lead product candidate , ibrexafungerp . we have incurred net losses since our inception , including the year ended december 31 , 2020. as of december 31 , 2020 , our accumulated deficit was $ 326.6 million . we anticipate that we will continue to incur losses for at least the next several years . as a result , we will need additional capital to fund our operations , which we may obtain through one or more of equity offerings , debt financings , or other non-dilutive third-party funding ( e.g. , grants , new jersey technology business tax certificate transfer ( nol ) program ) , strategic alliances and licensing or collaboration arrangements . we may offer shares of our common stock pursuant to our form s-3 shelf registration statements . for the year ended december 31 , 2020 , we received net proceeds of $ 4.8 million , under our atm facility . in april 2020 and march 2019 , we sold to puissance life science opportunities fund vi ( puissance ) $ 10.0 million and $ 16.0 million aggregate principal amount of our convertible senior notes ( notes ) , respectively . see note 7 to our consolidated financial statements for the year ended december 31 , 2020 , included in this annual report for further details . ``` Suspicious Activity Report : the fda has granted qualified infectious disease product ( qidp ) and fast track designations to ibrexafungerp for the indications of vvc ( including the treatment of vvc episodes and the prevention of recurrent vvc ) , invasive candidiasis ( ic ) ( including candidemia ) , and invasive aspergillosis ( ia ) , and has granted orphan drug designations for the ic and ia indications . these designations may provide us with additional market exclusivity and expedited regulatory paths . ibrexafungerp update we recently announced that the fda has accepted for filing our nda for ibrexafungerp for the treatment of vvc , also known as vaginal yeast infections . the fda has granted this application priority review , a designation which is granted to applications for potential drugs that , if approved , would be significant improvements in the safety or effectiveness of the treatment of serious conditions when compared to standard applications . under the pdufa , the fda has set a target action date of june 1 , 2021. additionally , the fda has communicated that it is not currently planning to hold an advisory committee meeting to discuss the application . the nda is supported by positive results from two phase 3 , randomized , double-blind , placebo-controlled , multi-center studies ( vanish-303 and vanish-306 ) , in which oral ibrexafungerp demonstrated statistically superior efficacy and a favorable tolerability profile in women with vvc . enrollment is complete in the candle study , a phase 3 , multi-center , randomized , double-blind , placebo-controlled trial designed to evaluate the efficacy and safety of oral ibrexafungerp for the prevention of recurrent vvc , for which there is no approved therapy in the u.s. as a result of the covid-19 pandemic , our timelines for reaching our targeted enrollment size in the candle study were slightly extended and we now anticipate both top-line data and a potential supplemental nda submission for the prevention of recurrent vvc in the first half of 2022 , resulting in a potential approval in late 2022. enrollment is ongoing in our refractory invasive fungal infections ( rifi ) program , which comprises two open-label phase 3 studies ( furi and cares ) designed to support a potential future nda submission through the limited population pathway for antibacterial and antifungal drugs ( lpad ) , as well as our phase 2 study ( scynergia study ) of oral ibrexafungerp in combination with voriconazole ( soc ) in patients with ia . similar to interim analyses of data previously reported , we intend to analyze the data of patients that have completed the treatment course in our furi and cares studies and announce these findings when complete . 41 we have successfully completed preclinical testing of our liposomal iv formulation of ibrexafungerp and we are advancing the program into human trials in healthy volunteers . the first trial is being conducted as a phase 1 , randomized , double-blind , placebo-controlled study to evaluate the safety , tolerability , and pharmacokinetics of the iv liposomal formulation of ibrexafungerp in healthy subjects . the study is being conducted in south africa and dosing started in march 2021. corporate update on december 2 , 2020 , we amended our license agreement with merck sharp & dohme corp. ( merck ) , dated may 24 , 2013. the amendment eliminates two cash milestone payments that we would have paid to merck upon the first filing of a nda , triggered by the fda acceptance for filing of our nda for ibrexafungerp for the treatment of vvc , and first marketing approval in the u.s. , anticipated in june 2021 for our nda for ibrexafungerp for the treatment of vvc . such cash milestone payments would have been creditable against future royalties owed to merck on net sales of ibrexafungerp . with the amendment , these milestones will not be paid in cash and , accordingly , credits will not accrue . pursuant to the amendment , we will also forfeit the credits against future royalties that it had accrued from a prior milestone payment already paid to merck . all other key terms of the license agreement are unchanged . on december 17 , 2020 , we completed a public offering ( the december 2020 public offering ) of our common stock and warrants pursuant to our effective shelf registration . we sold an aggregate of ( a ) 8,340,000 shares of our common stock , par value $ 0.001 per share , ( b ) pre-funded warrants , in lieu of common stock , to purchase 5,260,000 shares of our common stock , par value $ 0.001 per share , and ( c ) two series of warrants , which will accompany the common stock or pre-funded warrants , to purchase up to an aggregate of 13,600,000 shares of our common stock and received approximately $ 79.5 million in net proceeds . in february 2021 , we partnered with amplity inc. ( amplity ) for the potential upcoming commercial launch of ibrexafungerp for the treatment of vvc . under the terms of the 5-year agreement , we will utilize amplity 's commercial execution expertise and resources for sales force , remote engagement , training , market access and select operations services . we will maintain full ownership of ibrexafungerp and control of all strategic aspects of the launch . amplity is deferring a portion of its direct service costs in the first two years ( 2021 and 2022 ) , which we will repay over three years starting in 2023. amplity has the potential to earn a performance-based success fee in the 2023-2025 time frame by exceeding certain revenue targets . story_separator_special_tag additionally , pursuant to the note purchase agreement , we issued and sold to puissance $ 16.0 million aggregate principal amount of our march 2019 notes , resulting in $ 14.7 million in net proceeds after deducting an advisory fee and other issuance costs , and we used the net proceeds to pay the remaining outstanding solar term loan in full . as part of the payment of the outstanding balance of the solar term loan , we paid $ 0.8 million in debt extinguishment costs which comprised the remaining unamortized discount and issuance costs associated with the solar term loan prior to repayment . future funding requirements to date , we have not generated any revenue from product sales . we do not know when , or if , we will generate any revenue from product sales . we do not expect to generate significant revenue from product sales unless and until we obtain regulatory approval of and commercialize ibrexafungerp . in addition , we expect to incur expenses in connection with our ongoing development activities , particularly as we continue the research , development and clinical trials of , and seek regulatory approval for , our product candidates . we anticipate that we will need substantial additional funding in connection with our continuing future operations . based upon our existing operating plan , we believe that our existing cash and cash equivalents , the sale of a portion of our new jersey nols , the upfront payment from hansoh , and anticipated sales of brexafemme will enable us to fund our operating requirements into 2023. these funds will also be sufficient to enable us to commercially launch brexafemme for the treatment of vaginal yeast infections , if approved , and complete the development activities for the candle study . however , we are continually evaluating our operating plan and assessing the optimal cash utilization for our ibrexafungerp development strategy . we have based our estimates on assumptions that may prove to be wrong , and we may use our available capital resources sooner than we currently expect . because of the numerous risks and uncertainties associated with the development and commercialization of product candidates , we are unable to estimate the amounts of increased capital outlays and operating expenses necessary to complete the development of product candidates . our future capital requirements will depend on many factors , including : the progress , costs , and the clinical research and development of ibrexafungerp ; the outcome , costs and timing of seeking and obtaining fda and any other regulatory approvals ; the ability of our product candidates to progress through clinical development successfully ; our need to expand our research and development activities ; the costs associated with securing , establishing and maintaining commercialization and manufacturing capabilities ; our ability to maintain , expand and defend the scope of our intellectual property portfolio , including the amount and timing of any payments we may be required to make , or that we may receive , in connection with the licensing , filing , prosecution , defense and enforcement of any patents or other intellectual property rights ; our need and ability to hire additional management and scientific and medical personnel ; 47 our need to implement additional , as well as to enhance existing , internal systems and infrastructure , including financial and reporting processes and systems ; and the economic and other terms , timing and success of our existing licensing arrangements and any collaboration , licensing or other arrangements into which we may enter in the future . until such time , if ever , as we can generate substantial revenue from product sales , we expect to finance our cash needs through a combination of net proceeds from equity offerings , debt financings , or other non-dilutive third-party funding ( e.g . , grants , new jersey technology business tax certificate transfer ( nol ) program ) , strategic alliances and licensing arrangements . to the extent that we raise additional capital through the sale of equity or convertible debt securities , the ownership interests of our common stockholders will be diluted , and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our common stockholders . debt financing , similar to our previous loan agreement with solar or the convertible senior notes we sold in march 2019 and april 2020 , if available , may involve agreements that include covenants limiting or restricting our ability to take specific actions , such as incurring additional debt , making capital expenditures or declaring dividends . if we raise additional funds through sales of assets , other third-party funding , strategic alliances and licensing or collaboration arrangements with third parties , we may have to relinquish valuable rights to our technologies , future revenue streams , research programs or product candidates or to grant licenses on terms that may not be favorable to us . off-balance sheet arrangements during the periods presented we did not have , nor do we currently have , any off-balance sheet arrangements as defined under sec rules . 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 we have prepared in accordance with accounting principles generally accepted in the united states , or gaap . the preparation of our consolidated financial statements requires us to make judgments , estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of our consolidated financial statements , as well as the reported revenues and expenses during the reported periods . we evaluate these estimates and judgments on an ongoing basis . we base our assumptions and estimates on historical experience and on various other factors that we believe are reasonable under the

30 management focuses on a wide variety of financial measurements to assess our financial health and prospects but principally upon ( 1 ) sales , to measure the adoption of our marketing technology solutions by our customers , ( 2 ) cost of sales and gross profit , particularly expressed as gross profit percentage , to determine if sales have been made at levels of profit necessary to cover operating expenses on a long-term basis ( based upon assumptions regarding adoption ) , ( 3 ) sales of hardware relative to software and services , understanding that hardware typically provides a lower gross profit margin than do software license fees and services , ( 4 ) operating expenses so that management can appropriately match those expenses with sales , and ( 5 ) current assets , especially cash and cash equivalents used to fund operating losses thus far incurred . our w holly-owned subsidiary , wireless ronin technologies ( canada ) , inc. ( “ rnin canada ” ) , an ontario , canada provincial corporation located in windsor , ontario , maintains a vertical specific focus in the automotive industry and houses our c ontent e ngineering operation . rnin canada develop s digital content and sales support systems to help retailers train their sales staff and educate their customers at the point of sale . today , the capabilities of this operation are integrated with our historical business to provide content solutions to all of our clients . our company and our subsidiary sell products and services primarily throughout north america . in november 2012 , our board of directors approved a one-for-five reverse stock split of all outstanding common shares , which became effective on december 14 , 2012. a proportionate adjustment also was made to our outstanding derivative securities . all share and per share information set forth in this report has been adjusted to reflect such reverse stock split . our sources of revenue we generate revenue through system sales , license fees and separate service fees , including consulting , content development and implementation services , as well as ongoing customer support and maintenance , including product upgrades . we currently market and sell our software and service solutions primarily through our direct sales force , but we also utilize strategic partnerships and business alliances . in addition , in april 2013 , we entered into a license agreement with delphi display systems , inc. ( “ delphi ” ) ( the “ license agreement ” ) pursuant to which we granted delphi an exclusive , worldwide , perpetual license to use and sublicense our ronincast ® 4.0 html5-based software , as revised from time to time ( the “ software ” ) , in specified target markets . under the license agreement , these target markets are ( 1 ) quick-service restaurants or food service providers that have a substantial number of drive-through locations , ( 2 ) pump toppers ( displays located on fuel dispensing devices ) and ( 3 ) other markets as subsequently mutually agreed upon between us and delphi . the license is exclusive in the target markets for five years from the date of the license agreement , unless earlier terminated pursuant to the license agreement . during this exclusivity period , we have agreed not to market , sell or otherwise promote , either directly or indirectly , any product with substantially similar functionality to the software to the target markets . delphi has agreed to use its best efforts to market , promote , and sublicense the software within the target markets . although delphi may develop its own software to facilitate interface with the software for application in delphi 's own business or in the businesses of delphi 's sublicensees , delphi may not form an agreement with a third party to develop or resell software to compete with the software in any market during the term of the license agreement . should delphi elect to develop software that would compete with the software for a specific customer or market application ( “ the competing software ” ) , prior to delphi developing such software , delphi will grant us a right of first refusal to develop the competing software at a cost equal or less than delphi 's reasonable , documented costs to develop the competing software . in consideration of such license , delphi paid us in april 2013 a one-time license fee of $ 750,000 for the first 7,500 installed nodes , which represents approximately 1,500 locations based on an assumption of five installed nodes per location . we also agreed to certain node license fees for additional nodes . delphi has agreed to pay us monthly hosting and support service fees on installed nodes , including hosting and support service fees that increase each year over a five-year period and aggregate to a minimum of $ 1.3 million over such period . based on our review , we determined all the criteria to recognize the $ 750 ,000 had been properly met during the second quarter of 2013. this included the delivery of a master version of our ronincast® software to allow delphi the ability to replicate 7,500 copies as they resell our software . in addition , the $ 750,000 license fee is a fixed amount and not subject to change regardless of how many copies of our software , up to 7,500 copies , are ultimately resold . lastly , 31 the collectability of the license fee was determined to be probable as the amount was paid to us during the second quarter of 2013. our expenses our expenses are primarily comprised of three categories : sales and marketing , research and development and general and administrative . sales and marketing expenses include salaries and benefits for our sales associates and commissions paid on sales . story_separator_special_tag revenue generated from chrysler and the associated fiat dealerships , along with orders received from a supplier for chrysler 's ishowroom-branded towers totaled $ 2 . 4 million , which was down 2 9 % from $ 3.4 million recognized for the prior year . a significant portion of this dec r ease was attributable to fewer orders for our content and development services associated with e-learning course work and enhancement to ishowroom . we do not believe this decline represents a trend , but was due to timing of when new projects are initiated by chrysler . in addition , we experienced a decline in kiosk orders received from individual fiat dealerships when comparing 2013 to the prior year . in 2013 , we received a total of 29 kiosk orders for fiat dealerships , compared to 89 in 2012. we believe the rate of orders for our interactive kiosks being deployed to all the fiat dealerships will continue to decline as most fiat dealerships now have the application installed . however , we continue to believe there is still an opportunity for us to deploy additional interactive branded tower kiosks to the remaining chrysler dealerships , and we received new order s for 56 units in 2013. since we do not have a contract with chrysler requiring it to source all the various components of the solution through us and the purchase of the ishowroom branded towers remains within the discretion of the individual dealerships , we are unable to predict or forecast the timing or value of any future orders . we continued to provide ongoing support to yum ! 's qsr brands in 2013 , which includes kfc and kfc/taco bell combination stores . although we did not roll out new menu board deployments during 2013 , we did receive an order from kfc to upgrade the existing stores to our latest version of ronincast® software , which we successfully completed in 2013. we continue to believe kfc will expand the number of locations which features our digital menu board solution , but currently do not have a commitment on timing . the total number of yum ! brand stores we fully host and support through our noc was 178 at the end of 2013. we continue to support through our noc a network of approximately 294 sites we have deployed for thomson reuters , which feature its infopoint news service . in addition , during 2012 , we announced a new partnership under which we are the exclusive provider of a thomson reuter branded offering , thomson reuters 37 digital signage knowledge direct . thomson reuters is presently selling this offering through its sales team to the financial services industry , including many existing news service customers of thomson reuters . we continue to work for , and receive orders from , various customers in the food services industry as they come to realize the benefits of deploying digital signage for an array of different types of menu boards for both inside and outside applications . in addition , since 2011 we have successfully deployed other marketing technology solutions within our three primary verticals , qsr , automotive and branded retail , as a way of creating unique customer experiences . these technologies include interactive kiosks , ipad applications , mobile messaging , qr codes , sms marketing , near field communications and the integration of social networks into our product offerings . we believe these new technologies greatly expand the marketing solutions we are able to provide our existing and prospective customers and represent an opportunity to increase our revenue beyond traditional digital signage . as of december 31 , 2013 , we had a total of $ 0.4 million of purchase orders for which we had not recognized revenue . lastly , our recurring hosting and support revenue remained at the same level of $ 2.0 million for both 2013 and 2012. although we expanded our customer base from the deployments referenced above , we did see a decline in recurring revenue from thomson reuters as a result of a number of locations featuring thomson reuters ' info point digital signage system being taken off line during 2013. although we are starting to see an increase of adoption for marketing technology solutions such as ours at the macro level , we are unable to predict or forecast our future revenue with any degree of precision at this time . cost of sales our cost of sales decreased 7 % to $ 2.8 million in 2013 from $ 3.0 million in 2012. the decrease in cost of sales was primarily due to the year-over-year decrease in services sales , which was primarily associated with a decline in content and development work performed primarily for chrysler . on a percentage basis , our overall gross margin increased to 59 % in 2013 compared to 55 % for the prior year . the primary reason for this increase was due to the $ 750,000 software sale to delphi display systems , which was at 100 % gross margin . our overall software sales , which traditionally carry a higher gross margin percentage compared to our sales of hardware and services , were up 231 % or $ 0.8 million when comparing 2013 to the prior year . the increase in software revenue when comparing 2013 to 2012 resulted in a percentage improvement to 99 % in 2013 from 80 % in 2012. on a percentage basis , our services gross margin were the same at 58 % for both 2013 and 2012. our ability to maintain these levels of gross margin on a percentage basis can be impacted in any given quarter by shifts in our sales mix . however , we believe over the long-term our gross margins on a percentage basis will continue to increase as our recurring revenue grows . operating expenses sales and marketing expense includes the salaries , employee benefits ,

liquidity and capital resources going concern we incurred net losses and negative cash flows from operating activities for the years ended december 31 , 2013 , 2012 and 2011. at december 31 , 2013 , we had cash , cash equivalents and restricted cash of $ 1.5 million and working capital of $ 1 .3 million . the cash used in operating activities for the year ended december 31 , 2013 was $ 2.8 million . at december 31 , 2013 , we had no outstanding balance and no borrowing capability on our line of credit with silicon valley bank . silicon valley bank has issued a letter of credit in the amount of $ 180 ,000 as collateral to the landlord of our corporate office and another letter of credit to a vendor in the amount of $ 50 ,000 . as of december 31 , 2013 , we were unable to meet the minimum tangible net worth requirements per the terms of the loan and security agreement with silicon valley bank , and therefore we are currently unable to drawn down on the line of credit . as of december 31 , 2013 , our tangible net worth totaled $ 1.6 million or $ 0.6 million below the minimum required amount per the terms of the loan and security agreement with silicon valley bank . the line of credit is secured by all of our assets and mature s on july 15 , 2014 .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources going concern we incurred net losses and negative cash flows from operating activities for the years ended december 31 , 2013 , 2012 and 2011. at december 31 , 2013 , we had cash , cash equivalents and restricted cash of $ 1.5 million and working capital of $ 1 .3 million . the cash used in operating activities for the year ended december 31 , 2013 was $ 2.8 million . at december 31 , 2013 , we had no outstanding balance and no borrowing capability on our line of credit with silicon valley bank . silicon valley bank has issued a letter of credit in the amount of $ 180 ,000 as collateral to the landlord of our corporate office and another letter of credit to a vendor in the amount of $ 50 ,000 . as of december 31 , 2013 , we were unable to meet the minimum tangible net worth requirements per the terms of the loan and security agreement with silicon valley bank , and therefore we are currently unable to drawn down on the line of credit . as of december 31 , 2013 , our tangible net worth totaled $ 1.6 million or $ 0.6 million below the minimum required amount per the terms of the loan and security agreement with silicon valley bank . the line of credit is secured by all of our assets and mature s on july 15 , 2014 . ``` Suspicious Activity Report : 30 management focuses on a wide variety of financial measurements to assess our financial health and prospects but principally upon ( 1 ) sales , to measure the adoption of our marketing technology solutions by our customers , ( 2 ) cost of sales and gross profit , particularly expressed as gross profit percentage , to determine if sales have been made at levels of profit necessary to cover operating expenses on a long-term basis ( based upon assumptions regarding adoption ) , ( 3 ) sales of hardware relative to software and services , understanding that hardware typically provides a lower gross profit margin than do software license fees and services , ( 4 ) operating expenses so that management can appropriately match those expenses with sales , and ( 5 ) current assets , especially cash and cash equivalents used to fund operating losses thus far incurred . our w holly-owned subsidiary , wireless ronin technologies ( canada ) , inc. ( “ rnin canada ” ) , an ontario , canada provincial corporation located in windsor , ontario , maintains a vertical specific focus in the automotive industry and houses our c ontent e ngineering operation . rnin canada develop s digital content and sales support systems to help retailers train their sales staff and educate their customers at the point of sale . today , the capabilities of this operation are integrated with our historical business to provide content solutions to all of our clients . our company and our subsidiary sell products and services primarily throughout north america . in november 2012 , our board of directors approved a one-for-five reverse stock split of all outstanding common shares , which became effective on december 14 , 2012. a proportionate adjustment also was made to our outstanding derivative securities . all share and per share information set forth in this report has been adjusted to reflect such reverse stock split . our sources of revenue we generate revenue through system sales , license fees and separate service fees , including consulting , content development and implementation services , as well as ongoing customer support and maintenance , including product upgrades . we currently market and sell our software and service solutions primarily through our direct sales force , but we also utilize strategic partnerships and business alliances . in addition , in april 2013 , we entered into a license agreement with delphi display systems , inc. ( “ delphi ” ) ( the “ license agreement ” ) pursuant to which we granted delphi an exclusive , worldwide , perpetual license to use and sublicense our ronincast ® 4.0 html5-based software , as revised from time to time ( the “ software ” ) , in specified target markets . under the license agreement , these target markets are ( 1 ) quick-service restaurants or food service providers that have a substantial number of drive-through locations , ( 2 ) pump toppers ( displays located on fuel dispensing devices ) and ( 3 ) other markets as subsequently mutually agreed upon between us and delphi . the license is exclusive in the target markets for five years from the date of the license agreement , unless earlier terminated pursuant to the license agreement . during this exclusivity period , we have agreed not to market , sell or otherwise promote , either directly or indirectly , any product with substantially similar functionality to the software to the target markets . delphi has agreed to use its best efforts to market , promote , and sublicense the software within the target markets . although delphi may develop its own software to facilitate interface with the software for application in delphi 's own business or in the businesses of delphi 's sublicensees , delphi may not form an agreement with a third party to develop or resell software to compete with the software in any market during the term of the license agreement . should delphi elect to develop software that would compete with the software for a specific customer or market application ( “ the competing software ” ) , prior to delphi developing such software , delphi will grant us a right of first refusal to develop the competing software at a cost equal or less than delphi 's reasonable , documented costs to develop the competing software . in consideration of such license , delphi paid us in april 2013 a one-time license fee of $ 750,000 for the first 7,500 installed nodes , which represents approximately 1,500 locations based on an assumption of five installed nodes per location . we also agreed to certain node license fees for additional nodes . delphi has agreed to pay us monthly hosting and support service fees on installed nodes , including hosting and support service fees that increase each year over a five-year period and aggregate to a minimum of $ 1.3 million over such period . based on our review , we determined all the criteria to recognize the $ 750 ,000 had been properly met during the second quarter of 2013. this included the delivery of a master version of our ronincast® software to allow delphi the ability to replicate 7,500 copies as they resell our software . in addition , the $ 750,000 license fee is a fixed amount and not subject to change regardless of how many copies of our software , up to 7,500 copies , are ultimately resold . lastly , 31 the collectability of the license fee was determined to be probable as the amount was paid to us during the second quarter of 2013. our expenses our expenses are primarily comprised of three categories : sales and marketing , research and development and general and administrative . sales and marketing expenses include salaries and benefits for our sales associates and commissions paid on sales . story_separator_special_tag revenue generated from chrysler and the associated fiat dealerships , along with orders received from a supplier for chrysler 's ishowroom-branded towers totaled $ 2 . 4 million , which was down 2 9 % from $ 3.4 million recognized for the prior year . a significant portion of this dec r ease was attributable to fewer orders for our content and development services associated with e-learning course work and enhancement to ishowroom . we do not believe this decline represents a trend , but was due to timing of when new projects are initiated by chrysler . in addition , we experienced a decline in kiosk orders received from individual fiat dealerships when comparing 2013 to the prior year . in 2013 , we received a total of 29 kiosk orders for fiat dealerships , compared to 89 in 2012. we believe the rate of orders for our interactive kiosks being deployed to all the fiat dealerships will continue to decline as most fiat dealerships now have the application installed . however , we continue to believe there is still an opportunity for us to deploy additional interactive branded tower kiosks to the remaining chrysler dealerships , and we received new order s for 56 units in 2013. since we do not have a contract with chrysler requiring it to source all the various components of the solution through us and the purchase of the ishowroom branded towers remains within the discretion of the individual dealerships , we are unable to predict or forecast the timing or value of any future orders . we continued to provide ongoing support to yum ! 's qsr brands in 2013 , which includes kfc and kfc/taco bell combination stores . although we did not roll out new menu board deployments during 2013 , we did receive an order from kfc to upgrade the existing stores to our latest version of ronincast® software , which we successfully completed in 2013. we continue to believe kfc will expand the number of locations which features our digital menu board solution , but currently do not have a commitment on timing . the total number of yum ! brand stores we fully host and support through our noc was 178 at the end of 2013. we continue to support through our noc a network of approximately 294 sites we have deployed for thomson reuters , which feature its infopoint news service . in addition , during 2012 , we announced a new partnership under which we are the exclusive provider of a thomson reuter branded offering , thomson reuters 37 digital signage knowledge direct . thomson reuters is presently selling this offering through its sales team to the financial services industry , including many existing news service customers of thomson reuters . we continue to work for , and receive orders from , various customers in the food services industry as they come to realize the benefits of deploying digital signage for an array of different types of menu boards for both inside and outside applications . in addition , since 2011 we have successfully deployed other marketing technology solutions within our three primary verticals , qsr , automotive and branded retail , as a way of creating unique customer experiences . these technologies include interactive kiosks , ipad applications , mobile messaging , qr codes , sms marketing , near field communications and the integration of social networks into our product offerings . we believe these new technologies greatly expand the marketing solutions we are able to provide our existing and prospective customers and represent an opportunity to increase our revenue beyond traditional digital signage . as of december 31 , 2013 , we had a total of $ 0.4 million of purchase orders for which we had not recognized revenue . lastly , our recurring hosting and support revenue remained at the same level of $ 2.0 million for both 2013 and 2012. although we expanded our customer base from the deployments referenced above , we did see a decline in recurring revenue from thomson reuters as a result of a number of locations featuring thomson reuters ' info point digital signage system being taken off line during 2013. although we are starting to see an increase of adoption for marketing technology solutions such as ours at the macro level , we are unable to predict or forecast our future revenue with any degree of precision at this time . cost of sales our cost of sales decreased 7 % to $ 2.8 million in 2013 from $ 3.0 million in 2012. the decrease in cost of sales was primarily due to the year-over-year decrease in services sales , which was primarily associated with a decline in content and development work performed primarily for chrysler . on a percentage basis , our overall gross margin increased to 59 % in 2013 compared to 55 % for the prior year . the primary reason for this increase was due to the $ 750,000 software sale to delphi display systems , which was at 100 % gross margin . our overall software sales , which traditionally carry a higher gross margin percentage compared to our sales of hardware and services , were up 231 % or $ 0.8 million when comparing 2013 to the prior year . the increase in software revenue when comparing 2013 to 2012 resulted in a percentage improvement to 99 % in 2013 from 80 % in 2012. on a percentage basis , our services gross margin were the same at 58 % for both 2013 and 2012. our ability to maintain these levels of gross margin on a percentage basis can be impacted in any given quarter by shifts in our sales mix . however , we believe over the long-term our gross margins on a percentage basis will continue to increase as our recurring revenue grows . operating expenses sales and marketing expense includes the salaries , employee benefits ,

our products are used primarily in laboratories to speed new product development and increase yields by enabling 3d wafer metrology , defect analysis , root cause failure analysis and circuit edit for modifying device structures . in the data storage market , our products offer 3d metrology for thin film head processing and root cause failure analysis . factors affecting our business include the transition from longitudinal to perpendicular recording heads , rapidly increasing storage densities that require smaller recording heads , thinner geometries and materials that increase the complexity of device structures . the research and industry market includes universities , public and private research laboratories and customers in a wide range of industries , including automobiles , aerospace , metals , mining and petrochemicals . growth in these markets is driven by global corporate and government funding for research and development in materials science and by development of new products and processes based on innovations in materials at the nanoscale . our solutions provide researchers and manufacturers with atomic-level resolution images and permit development , analysis and production of advanced products . our products are also used in root cause failure analysis and quality control applications . the life sciences market includes universities and research institutes engaged in biotech and life sciences applications , as well as pharmaceutical , biotech and medical device companies and hospitals . our products ' ultra-high resolution imaging allows cell biologists and drug researchers to create detailed 3d reconstructions of complex biological structures . our products are also used in particle analysis and a range of pathology and quality control applications . overview net sales increased to $ 599.2 million in 2008 compared to $ 592.5 million in 2007. revenue increased in research and industry , life sciences and service and components and decreased in electronics , as discussed in more detail below . at december 31 , 2008 , our total backlog was $ 330.5 million compared to $ 310.8 million at december 31 , 2007. backlog consisted of product and service and components backlog of unfilled orders of $ 273.5 million and $ 57.0 million , respectively , at december 31 , 2008 compared to $ 256.1 million and $ 54.7 million , respectively , at december 31 , 2007. outlook for 2009 in light of the difficult global economic environment , including unprecedented volatility in foreign exchange markets , forecasting for all of 2009 is particularly challenging . after achieving revenue growth of 23.6 % in 2007 compared to 2006 , and 1.1 % in 2008 compared with 2007 , it is likely that we will experience a decline in revenue in 2009. we expect electronics revenue to continue to be depressed in 2009. the depressed electronics revenue may not be offset by any potential growth in our other markets for 2009. our backlog of unfilled orders as we enter the year is at record levels , and historically we have not experienced significant volumes of order cancellations . as result , revenues in the first half of 2009 will likely be approximately equal to , or only somewhat below , 2008 levels . if global economic conditions continue to be poor and this affects total new orders in the first half of 2009 , our revenues could decline more significantly in the second half of 2009. a significant portion of our revenue and expenses are denominated in euros . if the u.s. dollar continues to strengthen as it did in the second half of 2008 , then our reported revenue would decline or grow more slowly . at the same time , our expenses would decline even more rapidly , improving operating income . conversely , if the euro strengthens against the u.s. dollar , revenue would increase and expenses would increase more rapidly , reducing operating income . we are taking steps to create more naturally hedged 28 positions , but , for 2009 , the impact of currency movements are expected to generally be as described above . historically , our research and industry business has generally held up well in economic downturns , turning in flat revenue or even modest growth , as governments , institutions and corporations globally invest in research and product development . depending on the severity of the current downturn or whether there are significant cuts in government spending , we could see a contraction in our research and industry business in general . in addition , the smaller industrial portion of this segment could be negatively impacted by general economic weakness . overall , we believe the global reach of our products and the multi-year budget cycles of many of our customers will provide a measure of downside protection . presently , we expect continued growth in our life sciences business in 2009 , although it will vary from quarter to quarter and we lack visibility into the second half of 2009. this is an emerging , research-oriented market for us , and we expect our revenue to continue to be positively affected by the introduction of the titan krios tem in 2008. the electronics segment , which includes semiconductor and data storage customers , is in the midst of a severe industry-wide downturn . revenue for this segment is expected to decline in 2009. despite the difficult environment , we believe we have the potential to demonstrate better performance than the semiconductor capital equipment industry as a whole , because of increased demand for our higher-resolution images as manufacturers move to smaller line widths and new processes , among other factors . demand for service of our products is expected to grow modestly as our installed base of products grows . however , the current economic environment will most likely temper revenue growth in this segment . we believe we hold leadership positions , both technologically and in the markets in which we compete , with our tem and dualbeam products . story_separator_special_tag the discussions related to the proposed transaction were terminated in the first quarter of 2006. amortization of purchased technology amortization of purchased technology was $ 1.8 million in 2008 , $ 1.8 million in 2007 and $ 2.0 million in 2006. our purchased technology balance at december 31 , 2008 was $ 1.3 million and current amortization of purchased technology is approximately $ 0.5 million per quarter , which could increase if we acquire additional technology . asset impairment we had no asset impairment charges in 2008 or 2007. asset impairment charges of $ 0.5 million in 2006 were primarily for the write-off of the remaining costs related to the abandonment of our erp system , which were incurred during the first quarter of 2006. restructuring , reorganization , relocation and severance the $ 4.3 million of restructuring , reorganization , relocation and severance expense in 2008 related to our april 2008 restructuring plan . we expect to incur approximately an additional $ 2.7 to $ 4.7 million related to the implementation of this plan in 2009 , for total charges of between $ 7.0 million to $ 9.0 million . we expect some portion of these expenses will fall within sfas no . 146 , “ accounting for costs associated with exit or disposal activities .” some of the expenses , however , may not fall within the specific requirements of sfas no . 146. we are undertaking the restructuring with the aim of improving the efficiency of our operations and improving the currency balance in our supply chain so that more of our 35 costs are denominated in dollar or dollar-linked currencies . these actions are expected to reduce operating expenses , improve our factory utilization and help offset the effect of a weakened dollar on our cost of goods sold . the net $ 0.3 million expense reversal of restructuring , reorganization , relocation and severance costs in 2007 related to favorable buyouts of our peabody lease , offset by changes in estimates incorporated into our restructuring accrual related to our ability to sublease certain abandoned facilities under lease . restructuring , reorganization , relocation and severance in 2006 included a charge of $ 3.3 million for facilities and severance charges related to the closure of certain of our european field offices , closure of a research and development facility in tempe , arizona , as well as residual costs related to the peabody , massachusetts plant closure and the downsizing of the related semiconductor businesses . effective april 1 , 2006 , our chairman , president and chief executive officer ( “ceo” ) was terminated . our ceo was a party to an existing executive severance agreement dated february 1 , 2002. in accordance with this agreement , in the first quarter of 2006 , we recorded a charge of $ 9.3 million , of which $ 2.2 million related to the cash severance payments and $ 7.1 million related to the non-cash expense associated with the fair market value of modified stock options . for information regarding the related accrued liability , see note 14 of notes to consolidated financial statements . other income ( expense ) , net other income ( expense ) items include interest income , interest expense , foreign currency gains and losses and other miscellaneous items . interest income represents interest earned on cash and cash equivalents , investments in marketable securities . interest income was $ 14.4 million in 2008 , $ 22.4 million in 2007 and $ 13.2 million in 2006. the decrease in 2008 compared to 2007 was primarily due to a decrease in our invested balances , due to $ 45.9 million of payments in the first quarter of fiscal 2008 to repay the remaining balance on our 5.5 % convertible notes and $ 149.4 million of payments , including premiums , in the second and third quarters of fiscal 2008 to repay principal on our $ 150.0 million zero coupon convertible notes and much lower interest rates . the increase in 2007 compared to 2006 resulted from an increase in our invested balances , primarily due to cash generated by operations , as well as from the net proceeds from our sale of $ 115.0 million principal amount of 2.875 % convertible debt in may 2006. interest expense for 2008 , 2007 and 2006 included interest expense related to our $ 115.0 million principal amount of 2.875 % convertible notes . interest expense in 2007 and 2006 also included interest related to our 5.5 % convertible notes issued in august 2001 , which were repaid in full in january 2008. the amortization of capitalized note issuance costs related to our convertible note issuances is also included as a component of interest expense in all years . interest expense in 2008 included $ 0.2 million of premiums and commissions paid on the repurchase of the remaining $ 45.9 million of our 5.5 % convertible notes as well as the write-off of $ 0.1 million of related deferred note issuance costs and $ 0.4 million of premiums and commissions paid on the repurchase of $ 148.9 million principal amount of our $ 150.0 million zero coupon convertible notes as well as the write-off of $ 0.2 million of related deferred note issuance costs . interest expense in 2006 included premiums and commissions paid on the repurchase of a portion of our 5.5 % convertible subordinated notes as well as the write-off of deferred note issuance costs totaling $ 0.5 million . 36 assuming no additional note repurchases , amortization of our remaining convertible note issuance costs will total approximately $ 0.1 million per quarter through the second quarter of 2013. other , net primarily consists of foreign currency gains and losses on transactions and realized and unrealized gains and losses on the changes in fair value of derivative contracts entered into to hedge these transactions . other , net in 2008 included a loss of $ 1.3

liquidity and capital resources our sources of liquidity and capital resources as of december 31 , 2008 consisted of $ 190.4 million of cash , cash equivalents , short-term restricted cash and short-term investments , $ 94.1 million in non-current investments , $ 34.8 million of long-term restricted cash , $ 100.0 million available under revolving credit facilities , as well as potential future cash flows from operations . restricted cash relates to deposits to secure bank guarantees for customer prepayments that expire through 2013. at december 31 , 2008 , we held ars with a fair value of $ 91.7 million , which are included on our balance sheet at fair value as non-current investments in marketable securities . the par value of these securities was $ 110.1 million at december 31 , 2008. the ars held by us have long-term stated maturities for which the interest rates are reset through a dutch auction , which generally occurs every 28 days . the auctions have historically provided a liquid market for these securities as investors could readily sell their investments at auction . with the liquidity issues experienced in global credit and capital markets , the ars held by us have experienced multiple failed auctions , beginning on february 19 , 2008 , as the amount of securities submitted for sale has exceeded the amount of purchase orders . we expect that the market for these securities will remain illiquid until the securities are either redeemed or mature . accordingly , during the first quarter of 2008 , we reclassified our ars to non-current investments in marketable securities from short-term investments in marketable securities . all of the ars held by us continue to carry aaa ratings , have not experienced any payment defaults and are backed by student loans , some of which are guaranteed under the federal family education loan program of the u.s. department of education ( “usde” ) .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 sources of liquidity and capital resources as of december 31 , 2008 consisted of $ 190.4 million of cash , cash equivalents , short-term restricted cash and short-term investments , $ 94.1 million in non-current investments , $ 34.8 million of long-term restricted cash , $ 100.0 million available under revolving credit facilities , as well as potential future cash flows from operations . restricted cash relates to deposits to secure bank guarantees for customer prepayments that expire through 2013. at december 31 , 2008 , we held ars with a fair value of $ 91.7 million , which are included on our balance sheet at fair value as non-current investments in marketable securities . the par value of these securities was $ 110.1 million at december 31 , 2008. the ars held by us have long-term stated maturities for which the interest rates are reset through a dutch auction , which generally occurs every 28 days . the auctions have historically provided a liquid market for these securities as investors could readily sell their investments at auction . with the liquidity issues experienced in global credit and capital markets , the ars held by us have experienced multiple failed auctions , beginning on february 19 , 2008 , as the amount of securities submitted for sale has exceeded the amount of purchase orders . we expect that the market for these securities will remain illiquid until the securities are either redeemed or mature . accordingly , during the first quarter of 2008 , we reclassified our ars to non-current investments in marketable securities from short-term investments in marketable securities . all of the ars held by us continue to carry aaa ratings , have not experienced any payment defaults and are backed by student loans , some of which are guaranteed under the federal family education loan program of the u.s. department of education ( “usde” ) . ``` Suspicious Activity Report : our products are used primarily in laboratories to speed new product development and increase yields by enabling 3d wafer metrology , defect analysis , root cause failure analysis and circuit edit for modifying device structures . in the data storage market , our products offer 3d metrology for thin film head processing and root cause failure analysis . factors affecting our business include the transition from longitudinal to perpendicular recording heads , rapidly increasing storage densities that require smaller recording heads , thinner geometries and materials that increase the complexity of device structures . the research and industry market includes universities , public and private research laboratories and customers in a wide range of industries , including automobiles , aerospace , metals , mining and petrochemicals . growth in these markets is driven by global corporate and government funding for research and development in materials science and by development of new products and processes based on innovations in materials at the nanoscale . our solutions provide researchers and manufacturers with atomic-level resolution images and permit development , analysis and production of advanced products . our products are also used in root cause failure analysis and quality control applications . the life sciences market includes universities and research institutes engaged in biotech and life sciences applications , as well as pharmaceutical , biotech and medical device companies and hospitals . our products ' ultra-high resolution imaging allows cell biologists and drug researchers to create detailed 3d reconstructions of complex biological structures . our products are also used in particle analysis and a range of pathology and quality control applications . overview net sales increased to $ 599.2 million in 2008 compared to $ 592.5 million in 2007. revenue increased in research and industry , life sciences and service and components and decreased in electronics , as discussed in more detail below . at december 31 , 2008 , our total backlog was $ 330.5 million compared to $ 310.8 million at december 31 , 2007. backlog consisted of product and service and components backlog of unfilled orders of $ 273.5 million and $ 57.0 million , respectively , at december 31 , 2008 compared to $ 256.1 million and $ 54.7 million , respectively , at december 31 , 2007. outlook for 2009 in light of the difficult global economic environment , including unprecedented volatility in foreign exchange markets , forecasting for all of 2009 is particularly challenging . after achieving revenue growth of 23.6 % in 2007 compared to 2006 , and 1.1 % in 2008 compared with 2007 , it is likely that we will experience a decline in revenue in 2009. we expect electronics revenue to continue to be depressed in 2009. the depressed electronics revenue may not be offset by any potential growth in our other markets for 2009. our backlog of unfilled orders as we enter the year is at record levels , and historically we have not experienced significant volumes of order cancellations . as result , revenues in the first half of 2009 will likely be approximately equal to , or only somewhat below , 2008 levels . if global economic conditions continue to be poor and this affects total new orders in the first half of 2009 , our revenues could decline more significantly in the second half of 2009. a significant portion of our revenue and expenses are denominated in euros . if the u.s. dollar continues to strengthen as it did in the second half of 2008 , then our reported revenue would decline or grow more slowly . at the same time , our expenses would decline even more rapidly , improving operating income . conversely , if the euro strengthens against the u.s. dollar , revenue would increase and expenses would increase more rapidly , reducing operating income . we are taking steps to create more naturally hedged 28 positions , but , for 2009 , the impact of currency movements are expected to generally be as described above . historically , our research and industry business has generally held up well in economic downturns , turning in flat revenue or even modest growth , as governments , institutions and corporations globally invest in research and product development . depending on the severity of the current downturn or whether there are significant cuts in government spending , we could see a contraction in our research and industry business in general . in addition , the smaller industrial portion of this segment could be negatively impacted by general economic weakness . overall , we believe the global reach of our products and the multi-year budget cycles of many of our customers will provide a measure of downside protection . presently , we expect continued growth in our life sciences business in 2009 , although it will vary from quarter to quarter and we lack visibility into the second half of 2009. this is an emerging , research-oriented market for us , and we expect our revenue to continue to be positively affected by the introduction of the titan krios tem in 2008. the electronics segment , which includes semiconductor and data storage customers , is in the midst of a severe industry-wide downturn . revenue for this segment is expected to decline in 2009. despite the difficult environment , we believe we have the potential to demonstrate better performance than the semiconductor capital equipment industry as a whole , because of increased demand for our higher-resolution images as manufacturers move to smaller line widths and new processes , among other factors . demand for service of our products is expected to grow modestly as our installed base of products grows . however , the current economic environment will most likely temper revenue growth in this segment . we believe we hold leadership positions , both technologically and in the markets in which we compete , with our tem and dualbeam products . story_separator_special_tag the discussions related to the proposed transaction were terminated in the first quarter of 2006. amortization of purchased technology amortization of purchased technology was $ 1.8 million in 2008 , $ 1.8 million in 2007 and $ 2.0 million in 2006. our purchased technology balance at december 31 , 2008 was $ 1.3 million and current amortization of purchased technology is approximately $ 0.5 million per quarter , which could increase if we acquire additional technology . asset impairment we had no asset impairment charges in 2008 or 2007. asset impairment charges of $ 0.5 million in 2006 were primarily for the write-off of the remaining costs related to the abandonment of our erp system , which were incurred during the first quarter of 2006. restructuring , reorganization , relocation and severance the $ 4.3 million of restructuring , reorganization , relocation and severance expense in 2008 related to our april 2008 restructuring plan . we expect to incur approximately an additional $ 2.7 to $ 4.7 million related to the implementation of this plan in 2009 , for total charges of between $ 7.0 million to $ 9.0 million . we expect some portion of these expenses will fall within sfas no . 146 , “ accounting for costs associated with exit or disposal activities .” some of the expenses , however , may not fall within the specific requirements of sfas no . 146. we are undertaking the restructuring with the aim of improving the efficiency of our operations and improving the currency balance in our supply chain so that more of our 35 costs are denominated in dollar or dollar-linked currencies . these actions are expected to reduce operating expenses , improve our factory utilization and help offset the effect of a weakened dollar on our cost of goods sold . the net $ 0.3 million expense reversal of restructuring , reorganization , relocation and severance costs in 2007 related to favorable buyouts of our peabody lease , offset by changes in estimates incorporated into our restructuring accrual related to our ability to sublease certain abandoned facilities under lease . restructuring , reorganization , relocation and severance in 2006 included a charge of $ 3.3 million for facilities and severance charges related to the closure of certain of our european field offices , closure of a research and development facility in tempe , arizona , as well as residual costs related to the peabody , massachusetts plant closure and the downsizing of the related semiconductor businesses . effective april 1 , 2006 , our chairman , president and chief executive officer ( “ceo” ) was terminated . our ceo was a party to an existing executive severance agreement dated february 1 , 2002. in accordance with this agreement , in the first quarter of 2006 , we recorded a charge of $ 9.3 million , of which $ 2.2 million related to the cash severance payments and $ 7.1 million related to the non-cash expense associated with the fair market value of modified stock options . for information regarding the related accrued liability , see note 14 of notes to consolidated financial statements . other income ( expense ) , net other income ( expense ) items include interest income , interest expense , foreign currency gains and losses and other miscellaneous items . interest income represents interest earned on cash and cash equivalents , investments in marketable securities . interest income was $ 14.4 million in 2008 , $ 22.4 million in 2007 and $ 13.2 million in 2006. the decrease in 2008 compared to 2007 was primarily due to a decrease in our invested balances , due to $ 45.9 million of payments in the first quarter of fiscal 2008 to repay the remaining balance on our 5.5 % convertible notes and $ 149.4 million of payments , including premiums , in the second and third quarters of fiscal 2008 to repay principal on our $ 150.0 million zero coupon convertible notes and much lower interest rates . the increase in 2007 compared to 2006 resulted from an increase in our invested balances , primarily due to cash generated by operations , as well as from the net proceeds from our sale of $ 115.0 million principal amount of 2.875 % convertible debt in may 2006. interest expense for 2008 , 2007 and 2006 included interest expense related to our $ 115.0 million principal amount of 2.875 % convertible notes . interest expense in 2007 and 2006 also included interest related to our 5.5 % convertible notes issued in august 2001 , which were repaid in full in january 2008. the amortization of capitalized note issuance costs related to our convertible note issuances is also included as a component of interest expense in all years . interest expense in 2008 included $ 0.2 million of premiums and commissions paid on the repurchase of the remaining $ 45.9 million of our 5.5 % convertible notes as well as the write-off of $ 0.1 million of related deferred note issuance costs and $ 0.4 million of premiums and commissions paid on the repurchase of $ 148.9 million principal amount of our $ 150.0 million zero coupon convertible notes as well as the write-off of $ 0.2 million of related deferred note issuance costs . interest expense in 2006 included premiums and commissions paid on the repurchase of a portion of our 5.5 % convertible subordinated notes as well as the write-off of deferred note issuance costs totaling $ 0.5 million . 36 assuming no additional note repurchases , amortization of our remaining convertible note issuance costs will total approximately $ 0.1 million per quarter through the second quarter of 2013. other , net primarily consists of foreign currency gains and losses on transactions and realized and unrealized gains and losses on the changes in fair value of derivative contracts entered into to hedge these transactions . other , net in 2008 included a loss of $ 1.3

however , these policies either do not meet the definition of critical accounting estimates described above or are not currently material items in our financial statements . we review our estimates , judgments and assumptions periodically and reflect the effects of revisions in the period that they are deemed to be necessary . we believe that these estimates are reasonable . however , actual results could differ materially from these estimates . 31 goodwill and franchise value we are required to test our goodwill and franchise value for impairment at least annually , or more frequently if conditions indicate that an impairment may have occurred . goodwill is tested for impairment at the reporting unit level . our reporting units are individual retail automotive franchises as this is the level at which discrete financial information is available and for which operating results are regularly reviewed by our chief operating decision maker to allocate resources and assess performance . we have the option to qualitatively or quantitatively assess goodwill for impairment and , in 2015 , evaluated our goodwill using a quantitative assessment process . we test goodwill for impairment using the adjusted present value method ( “ apv ” ) to estimate the fair value of our reporting unit . under the apv method , future cash flows are based on recently prepared budget forecasts and business plans and are used to estimate the future economic benefits that the reporting unit will generate . an estimate of the appropriate discount rate is utilized to convert the future economic benefits to their present value equivalent . the quantitative goodwill impairment test is a two-step process . the first step identifies potential impairments by comparing the calculated fair value of a reporting unit with its book value . if the fair value of the reporting unit exceeds the carrying amount , goodwill is not impaired and the second step is not necessary . if the carrying value exceeds the fair value , the second step includes determining the implied fair value in the same manner as the amount of goodwill recognized in a business combination is determined . the implied fair value of goodwill is then compared with the carrying amount to determine if an impairment loss should be recorded . we also may use a market approach to determine whether or not the carrying amount of our goodwill is impaired . these market data points include our acquisition and divestiture experience and third-party broker estimates . as of december 31 , 2015 , we had $ 213.2 million of goodwill on our balance sheet associated with 133 reporting units . the first step of our annual goodwill impairment analysis , which we perform as of october 1 of each year , did not result in an indication of impairment in 2015 , 2014 or 2013. we have determined the appropriate unit of accounting for testing franchise rights for impairment is on an individual store basis . we have the option to qualitatively or quantitatively assess indefinite-lived intangible assets for impairment . in 2015 , we evaluated our indefinite-lived intangible assets using a quantitative assessment process . we estimate the fair value of our franchise rights primarily using the multi-period excess earnings ( “ mpee ” ) model . the forecasted cash flows used in the mpee model contain inherent uncertainties , including significant estimates and assumptions related to growth rates , margins , general operating expenses , and cost of capital . we use primarily internally-developed forecasts and business plans to estimate the future cash flows that each franchise will generate . we have determined that only certain cash flows of the store are directly attributable to the franchise rights . we estimate the appropriate interest rate to discount future cash flows to their present value equivalent taking into consideration factors such as a risk-free rate , a peer group average beta , an equity risk premium and a small stock risk premium . we also may use a market approach to determine the fair value of our franchise rights . these market data points include our acquisition and divestiture experience and third-party broker estimates . as of december 31 , 2015 , we had $ 157.7 million of franchise value on our balance sheet associated with 95 stores . no individual store accounted for more than 5 % of our total franchise value as of december 31 , 2015. our impairment testing of franchise value did not indicate any impairment in 2015 , 2014 or 2013. we are subject to financial statement risk to the extent that our goodwill or franchise rights become impaired due to decreases in the fair value . a future decline in performance , decreases in projected growth rates or margin assumptions or changes in discount rates could result in a potential impairment , which could have a material adverse impact on our financial position and results of operations . furthermore , if a manufacturer becomes insolvent , we may be required to record a partial or total impairment on the franchise value or goodwill related to that manufacturer . no individual manufacturer accounted for more than 19 % of our total franchise value and goodwill as of december 31 , 2015. see notes 1 and 5 of notes to consolidated financial statements for additional information . long-lived assets we estimate the depreciable lives of our property and equipment , including leasehold improvements , and review each asset group for impairment when events or circumstances indicate that their carrying amounts may not be recoverable . we determined an asset group is comprised of the long-lived assets used in the operations of an individual store . 32 we determine a triggering event has occurred by reviewing store forecasted and historical financial performance . an asset group is evaluated for recoverability if it has an operating loss in the current year and two of the prior three years . story_separator_special_tag on average , in 2015 and 2014 , each of our stores sold 62 and 56 retail used vehicle units per month , respectively . we continue to target increasing sales to 75 units per store per month . used retail vehicle gross profit increased 34.6 % in 2015 compared to 2014 , primarily driven by the acquisition of the dch auto group in the fourth quarter of 2014. on a same store basis , gross profit increased 10.9 % in 2015 compared to 2014 , primarily due to increased unit volume and increased gross profit per unit , partially offset by slight margin declines . the unit volume growth was driven by a mix shift toward certified pre-owned and core vehicles , which have higher average selling prices , but lower gross margins than value autos . used retail vehicle gross profit dollars increased 18.8 % in 2014 compared to 2013. on a same store basis , gross profit increased 5.8 % in 2014 compared to 2013. these increases were primarily due to volume growth , partially offset by decreases in the average gross profit per unit sold . the volume growth was driven by a larger number of late-model vehicles being available in the marketplace compared to the prior few years . vehicle production levels were cut significantly in the 2009 and 2010 model years , and as production increased in subsequent years , a greater number of vehicles are available due to the natural trade cycle and more lease returns . similar to new vehicle sales , we focus on gross profit dollars earned per unit , not on gross margin , in evaluating our sales performance . gross profit per unit was lower in 2014 than in 2013 primarily due to shift in mix to more late-model vehicles due to the increase in supply noted above . these vehicles are more homogenous in nature and typically are more commoditized relative to older cars that have a wider variety of mileage and condition , allowing more gross profit to be earned per vehicle due to their unique nature . used vehicle wholesale revenue and gross profit replace_table_token_17_th 39 replace_table_token_18_th wholesale transactions are vehicles we have purchased from customers or vehicles we have attempted to sell via retail that we elect to dispose of due to inventory age or other factors . wholesale vehicles are typically sold at or near inventory cost and do not comprise a meaningful component of our gross profit . finance and insurance replace_table_token_19_th replace_table_token_20_th the increase in finance and insurance revenue in 2015 compared to 2014 was primarily due to higher unit volume as a result of the acquisition of the dch auto group in the fourth quarter of 2014. on a same store basis , the increase was due to higher unit volume sales and an increase in the average finance and insurance revenue earned per unit . the increase in finance and insurance sales in 2014 compared to 2013 was driven by increased vehicle sales volume and higher average selling prices per retail unit . 40 trends in penetration rates for total new and used retail vehicles sold are detailed below : replace_table_token_21_th penetration rates have been consistent for finance and insurance and service contracts in all three years . penetration rates in lifetime lube , oil and filter contracts decreased in 2015 compared to prior years because we only began to offer this product at stores acquired as part of the dch auto group in the second half of 2015 , diluting the average across our entire store base . penetration rates , excluding the dch stores , remained relatively consistent . we believe the availability of credit is one of the key indicators of our ability to retail automobiles , as we arrange financing on almost 80 % of the vehicles we sell and believe a significant amount of the vehicles we do not arrange financing for are financed elsewhere . to evaluate the availability of credit , we categorize our customers based on their fair , isaac and company ( fico ) credit score . the distribution by credit score for the customers we arranged financing for was as follows : replace_table_token_22_th we continued to see the availability of consumer credit expand in 2015 compared to 2014 and in 2014 compared to 2013. service , body and parts revenue and gross profit replace_table_token_23_th 41 replace_table_token_24_th our service , body and parts sales grew in all areas in 2015 compared to 2014 and in 2014 compared to 2013. there are more late-model units in operation as new vehicle sales volumes have been increasing annually since 2010. we believe this increase in units in operation will benefit our service , body and parts sales in the coming years as more late-model vehicles age , necessitating repairs and maintenance . we focus on retaining customers by offering competitively priced routine maintenance and through our marketing efforts . we increased our same store customer pay business 7.8 % in 2015 compared to 2014 and by 9.0 % in 2014 compared to 2013. same store warranty sales increased 25.3 % in 2015 compared to 2014 and 23.2 % in 2014 compared to 2013 , primarily due to significant vehicle recalls across multiple manufacturers . additionally , we continue to see increases in warranty sales due to the growing number of units in operation . routine maintenance , such as oil changes , offered by certain brands , including bmw , toyota and general motors , for two to four years after a vehicle is sold , provides for future work as consumers return to the franchised dealer for this maintenance item . increases in same-store warranty work by segment were as follows : replace_table_token_25_th same store wholesale parts grew 4.6 % and 8.0 % , respectively , in 2015 compared to 2014 and in 2014 compared to 2013 , primarily due to targeting independent repair shops , competing new vehicle dealers and wholesale

liquidity and capital resources we manage our liquidity and capital resources to fund our operating , investing and financing activities . we rely primarily on cash flows from operations and borrowings under our credit facilities as the main sources for liquidity . we use those funds to invest in capital expenditures , increase working capital and fulfill contractual obligations . remaining funds are used for acquisitions , debt retirement , cash dividends , share repurchases and general business purposes . available sources below is a summary of our immediately available funds ( in thousands ) : replace_table_token_60_th cash flows generated by operating activities and from our credit facility are our most significant sources of liquidity . we also have the ability to raise funds through mortgaging real estate . as of december 31 , 2015 , our unencumbered owned operating real estate had a book value of $ 211.5 million . assuming we can obtain financing on 75 % of this value , we estimate we could have obtained additional funds of approximately $ 158.6 million at december 31 , 2015 ; however , no assurances can be provided that the appraised value of these properties will match or exceed their book values or that this capital source will be available on terms acceptable to us . in addition to the above sources of liquidity , potential sources include the placement of subordinated debentures or loans , the sale of equity securities and the sale of stores or other assets . we evaluate all of these options and may select one or more of them depending on overall capital needs and the availability and cost of capital , although no assurances can be provided that these capital sources will be available in sufficient amounts or with terms acceptable to us . information about our cash flows , by category , is presented in our consolidated statements of cash flows .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources we manage our liquidity and capital resources to fund our operating , investing and financing activities . we rely primarily on cash flows from operations and borrowings under our credit facilities as the main sources for liquidity . we use those funds to invest in capital expenditures , increase working capital and fulfill contractual obligations . remaining funds are used for acquisitions , debt retirement , cash dividends , share repurchases and general business purposes . available sources below is a summary of our immediately available funds ( in thousands ) : replace_table_token_60_th cash flows generated by operating activities and from our credit facility are our most significant sources of liquidity . we also have the ability to raise funds through mortgaging real estate . as of december 31 , 2015 , our unencumbered owned operating real estate had a book value of $ 211.5 million . assuming we can obtain financing on 75 % of this value , we estimate we could have obtained additional funds of approximately $ 158.6 million at december 31 , 2015 ; however , no assurances can be provided that the appraised value of these properties will match or exceed their book values or that this capital source will be available on terms acceptable to us . in addition to the above sources of liquidity , potential sources include the placement of subordinated debentures or loans , the sale of equity securities and the sale of stores or other assets . we evaluate all of these options and may select one or more of them depending on overall capital needs and the availability and cost of capital , although no assurances can be provided that these capital sources will be available in sufficient amounts or with terms acceptable to us . information about our cash flows , by category , is presented in our consolidated statements of cash flows . ``` Suspicious Activity Report : however , these policies either do not meet the definition of critical accounting estimates described above or are not currently material items in our financial statements . we review our estimates , judgments and assumptions periodically and reflect the effects of revisions in the period that they are deemed to be necessary . we believe that these estimates are reasonable . however , actual results could differ materially from these estimates . 31 goodwill and franchise value we are required to test our goodwill and franchise value for impairment at least annually , or more frequently if conditions indicate that an impairment may have occurred . goodwill is tested for impairment at the reporting unit level . our reporting units are individual retail automotive franchises as this is the level at which discrete financial information is available and for which operating results are regularly reviewed by our chief operating decision maker to allocate resources and assess performance . we have the option to qualitatively or quantitatively assess goodwill for impairment and , in 2015 , evaluated our goodwill using a quantitative assessment process . we test goodwill for impairment using the adjusted present value method ( “ apv ” ) to estimate the fair value of our reporting unit . under the apv method , future cash flows are based on recently prepared budget forecasts and business plans and are used to estimate the future economic benefits that the reporting unit will generate . an estimate of the appropriate discount rate is utilized to convert the future economic benefits to their present value equivalent . the quantitative goodwill impairment test is a two-step process . the first step identifies potential impairments by comparing the calculated fair value of a reporting unit with its book value . if the fair value of the reporting unit exceeds the carrying amount , goodwill is not impaired and the second step is not necessary . if the carrying value exceeds the fair value , the second step includes determining the implied fair value in the same manner as the amount of goodwill recognized in a business combination is determined . the implied fair value of goodwill is then compared with the carrying amount to determine if an impairment loss should be recorded . we also may use a market approach to determine whether or not the carrying amount of our goodwill is impaired . these market data points include our acquisition and divestiture experience and third-party broker estimates . as of december 31 , 2015 , we had $ 213.2 million of goodwill on our balance sheet associated with 133 reporting units . the first step of our annual goodwill impairment analysis , which we perform as of october 1 of each year , did not result in an indication of impairment in 2015 , 2014 or 2013. we have determined the appropriate unit of accounting for testing franchise rights for impairment is on an individual store basis . we have the option to qualitatively or quantitatively assess indefinite-lived intangible assets for impairment . in 2015 , we evaluated our indefinite-lived intangible assets using a quantitative assessment process . we estimate the fair value of our franchise rights primarily using the multi-period excess earnings ( “ mpee ” ) model . the forecasted cash flows used in the mpee model contain inherent uncertainties , including significant estimates and assumptions related to growth rates , margins , general operating expenses , and cost of capital . we use primarily internally-developed forecasts and business plans to estimate the future cash flows that each franchise will generate . we have determined that only certain cash flows of the store are directly attributable to the franchise rights . we estimate the appropriate interest rate to discount future cash flows to their present value equivalent taking into consideration factors such as a risk-free rate , a peer group average beta , an equity risk premium and a small stock risk premium . we also may use a market approach to determine the fair value of our franchise rights . these market data points include our acquisition and divestiture experience and third-party broker estimates . as of december 31 , 2015 , we had $ 157.7 million of franchise value on our balance sheet associated with 95 stores . no individual store accounted for more than 5 % of our total franchise value as of december 31 , 2015. our impairment testing of franchise value did not indicate any impairment in 2015 , 2014 or 2013. we are subject to financial statement risk to the extent that our goodwill or franchise rights become impaired due to decreases in the fair value . a future decline in performance , decreases in projected growth rates or margin assumptions or changes in discount rates could result in a potential impairment , which could have a material adverse impact on our financial position and results of operations . furthermore , if a manufacturer becomes insolvent , we may be required to record a partial or total impairment on the franchise value or goodwill related to that manufacturer . no individual manufacturer accounted for more than 19 % of our total franchise value and goodwill as of december 31 , 2015. see notes 1 and 5 of notes to consolidated financial statements for additional information . long-lived assets we estimate the depreciable lives of our property and equipment , including leasehold improvements , and review each asset group for impairment when events or circumstances indicate that their carrying amounts may not be recoverable . we determined an asset group is comprised of the long-lived assets used in the operations of an individual store . 32 we determine a triggering event has occurred by reviewing store forecasted and historical financial performance . an asset group is evaluated for recoverability if it has an operating loss in the current year and two of the prior three years . story_separator_special_tag on average , in 2015 and 2014 , each of our stores sold 62 and 56 retail used vehicle units per month , respectively . we continue to target increasing sales to 75 units per store per month . used retail vehicle gross profit increased 34.6 % in 2015 compared to 2014 , primarily driven by the acquisition of the dch auto group in the fourth quarter of 2014. on a same store basis , gross profit increased 10.9 % in 2015 compared to 2014 , primarily due to increased unit volume and increased gross profit per unit , partially offset by slight margin declines . the unit volume growth was driven by a mix shift toward certified pre-owned and core vehicles , which have higher average selling prices , but lower gross margins than value autos . used retail vehicle gross profit dollars increased 18.8 % in 2014 compared to 2013. on a same store basis , gross profit increased 5.8 % in 2014 compared to 2013. these increases were primarily due to volume growth , partially offset by decreases in the average gross profit per unit sold . the volume growth was driven by a larger number of late-model vehicles being available in the marketplace compared to the prior few years . vehicle production levels were cut significantly in the 2009 and 2010 model years , and as production increased in subsequent years , a greater number of vehicles are available due to the natural trade cycle and more lease returns . similar to new vehicle sales , we focus on gross profit dollars earned per unit , not on gross margin , in evaluating our sales performance . gross profit per unit was lower in 2014 than in 2013 primarily due to shift in mix to more late-model vehicles due to the increase in supply noted above . these vehicles are more homogenous in nature and typically are more commoditized relative to older cars that have a wider variety of mileage and condition , allowing more gross profit to be earned per vehicle due to their unique nature . used vehicle wholesale revenue and gross profit replace_table_token_17_th 39 replace_table_token_18_th wholesale transactions are vehicles we have purchased from customers or vehicles we have attempted to sell via retail that we elect to dispose of due to inventory age or other factors . wholesale vehicles are typically sold at or near inventory cost and do not comprise a meaningful component of our gross profit . finance and insurance replace_table_token_19_th replace_table_token_20_th the increase in finance and insurance revenue in 2015 compared to 2014 was primarily due to higher unit volume as a result of the acquisition of the dch auto group in the fourth quarter of 2014. on a same store basis , the increase was due to higher unit volume sales and an increase in the average finance and insurance revenue earned per unit . the increase in finance and insurance sales in 2014 compared to 2013 was driven by increased vehicle sales volume and higher average selling prices per retail unit . 40 trends in penetration rates for total new and used retail vehicles sold are detailed below : replace_table_token_21_th penetration rates have been consistent for finance and insurance and service contracts in all three years . penetration rates in lifetime lube , oil and filter contracts decreased in 2015 compared to prior years because we only began to offer this product at stores acquired as part of the dch auto group in the second half of 2015 , diluting the average across our entire store base . penetration rates , excluding the dch stores , remained relatively consistent . we believe the availability of credit is one of the key indicators of our ability to retail automobiles , as we arrange financing on almost 80 % of the vehicles we sell and believe a significant amount of the vehicles we do not arrange financing for are financed elsewhere . to evaluate the availability of credit , we categorize our customers based on their fair , isaac and company ( fico ) credit score . the distribution by credit score for the customers we arranged financing for was as follows : replace_table_token_22_th we continued to see the availability of consumer credit expand in 2015 compared to 2014 and in 2014 compared to 2013. service , body and parts revenue and gross profit replace_table_token_23_th 41 replace_table_token_24_th our service , body and parts sales grew in all areas in 2015 compared to 2014 and in 2014 compared to 2013. there are more late-model units in operation as new vehicle sales volumes have been increasing annually since 2010. we believe this increase in units in operation will benefit our service , body and parts sales in the coming years as more late-model vehicles age , necessitating repairs and maintenance . we focus on retaining customers by offering competitively priced routine maintenance and through our marketing efforts . we increased our same store customer pay business 7.8 % in 2015 compared to 2014 and by 9.0 % in 2014 compared to 2013. same store warranty sales increased 25.3 % in 2015 compared to 2014 and 23.2 % in 2014 compared to 2013 , primarily due to significant vehicle recalls across multiple manufacturers . additionally , we continue to see increases in warranty sales due to the growing number of units in operation . routine maintenance , such as oil changes , offered by certain brands , including bmw , toyota and general motors , for two to four years after a vehicle is sold , provides for future work as consumers return to the franchised dealer for this maintenance item . increases in same-store warranty work by segment were as follows : replace_table_token_25_th same store wholesale parts grew 4.6 % and 8.0 % , respectively , in 2015 compared to 2014 and in 2014 compared to 2013 , primarily due to targeting independent repair shops , competing new vehicle dealers and wholesale

in september 2019 , we announced our board of directors determined to suspend the quarterly common stock dividend to improve cash flow . 26 in september 2018 , we sold our resins business for $ 17 million , a non-core asset originally acquired as part of our acquisition of tembec . the resulting gain on sale of $ 7 million was treated as an adjustment to the bargain purchase gain in 2018. high purity cellulose we manufacture and market high purity cellulose , which is sold as either cellulose specialties or commodity products . we are the leading global producer of cellulose specialties , which are primarily used in dissolving chemical applications that require a highly purified form of cellulose . pricing for our cellulose specialties products is typically set by contract for a duration of at least one year based on discussions with customers . our commodity products primarily consist of commodity viscose and absorbent materials . commodity viscose is a raw material required for the manufacture of viscose staple fibers which are used in woven and non-woven applications . absorbent materials , typically referred to as fluff fibers , are used as an absorbent medium in consumer products . pricing for commodity products is typically referenced to published indexes or based on publicly available spot market prices . sales of chemicals and energy , a majority of which are by-products , are included in the high purity cellulose segment . our four production facilities , located in the u.s. , canada and france , have a combined annual production capacity of approximately 775,000 metric tons of cellulose specialties or commodity products . additionally , we have dedicated approximately 250,000 metric tons of annual production to commodity products . wood fiber , chemicals , and energy represent approximately 28 percent , 14 percent and 6 percent , respectively , of the per metric ton cost of sales . labor , manufacturing and maintenance supplies , depreciation , manufacturing overhead and transportation costs represent the remaining cost of sales . forest products we manufacture and market high-quality construction-grade lumber in north america . the lumber , primarily spruce , pine , or fir , is used in the construction of residential and multi-family homes , light industrial and commercial facilities , and the home repair and remodel markets . the chips , manufactured as a by-product of the lumber manufacturing process , are used in our canadian high purity cellulose , pulp and newsprint plants . pricing for lumber is typically referenced to published indexes marketed through our internal sales team . our six production facilities located in canada have a targeted annual production capacity of approximately 755 million board feet of lumber . wood fiber and energy represents approximately 46 percent and 4 percent , respectively , of the per million board feet cost of sales . labor , manufacturing and maintenance supplies , depreciation , manufacturing overhead and transportation costs represent the remaining cost of sales . paperboard we manufacture and market paperboard that is used for printing documents , brochures , promotional materials , packaging , paperback book or catalog covers , file folders , tags , and tickets . pricing for paperboard is typically referenced to published indices and marketed through our internal sales team . our production facility located in canada has the capacity to annually produce 180,000 metric tons of paperboard . wood pulp , chemicals , and energy represent approximately 60 percent , 15 percent and 6 percent , respectively , of the per metric ton cost of sales . labor , manufacturing and maintenance supplies , depreciation , manufacturing overhead and transportation costs represent the remaining cost of sales . pulp & newsprint pulp we manufacture and market high-yield pulp which is used by paper manufacturers to produce paperboard , packaging , printing and writing papers and a variety of other paper products . pricing for high-yield pulp is typically referenced to published indexes marketed through our internal sales team . our production facility located in canada has the capacity to annually produce 300,000 metric tons of high-yield pulp . wood fiber , chemicals , and energy represent approximately 22 percent , 12 percent and 11 percent , respectively , of the per metric ton cost of sales . labor , manufacturing and maintenance supplies , depreciation , manufacturing overhead and transportation costs represent the remaining cost of sales . newsprint 27 we manufacture newsprint , a paper grade used to print newspapers , advertising materials and other publications . pricing for newsprint is typically referenced to published indices and marketed through our internal sales team . our production facility located in canada has the capacity to annually produce 205,000 metric tons of newsprint . wood fiber and chemicals represent approximately 13 percent and 4 percent , respectively , of the per metric ton cost of sales . labor , energy , manufacturing and maintenance supplies , depreciation , manufacturing overhead and transportation costs represent the remaining cost of sales . market assessment the market assessment represents our best current estimate of each business in this environment . high purity cellulose we are experiencing increased strong demand for our commodity products and stable demand for our high-value cellulose specialties products . prices for cellulose specialties are expected to decline slightly relative to 2020 while prices for commodity products , fluff and viscose pulps , will increase significantly in the first quarter and are forecasted to remain elevated for the near-term . overall , we expect increased pricing from 2020 levels while total volumes and mix for 2021 are expected to remain steady compared to 2020 as increased productivity will be offset by an extended maintenance outage at the jesup facility in the second quarter . key costs , including wood , energy and commodity chemical prices declined in 2020 from prior year levels due to both market conditions and our strategic actions . story_separator_special_tag in connection with the early repayment of the senior secured credit facility , we recorded a loss from extinguishment of long-term debt of $ 8 million , primarily from writing off unamortized deferred financing fees . for additional information , see note 10 — story_separator_special_tag 6.5 % 0.2 % 0.7 % ( a ) volume/sales mix computed based on contribution margin . operating income remained essentially flat in 2020 when compared to the prior year . lower wood and chemical costs , improved reliability and higher commodity volumes were offset by the impact of lower cellulose specialty volumes and commodity sale price declines during 2020. included in sg & a and other costs is our share of the loss of the lignin joint venture of $ 4 million and $ 5 million during 2020 and 2019 , respectively . forest products replace_table_token_7_th 34 changes in forest products net sales are as follows : net sales ( in millions ) 2019 changes attributable to : 2020 price vol/mix/other ( a ) lumber $ 230 $ 92 $ ( 3 ) $ 319 other sales ( a ) 69 — 4 73 total net sales $ 299 $ 92 $ 1 $ 392 ( a ) other sales include sales of logs , wood chips , and other by-products to third-parties and other segments . total net sales increased $ 93 million , or 31 percent , in 2020. lumber sales prices improved 40 percent due to strong demand while lumber sales volumes decreased by 1 percent as a result of market downtime taken in the first half of the year to address the initial negative impact on demand driven by the covid-19 pandemic . other sales were up from higher wood chip sales during the year ended december 31 , 2020. changes in forest products operating income are as follows : operating income ( in millions ) gross margin changes attributable to : 2019 price volume/ sales mix ( a ) cost sg & a and other 2020 operating income $ ( 31 ) $ 92 $ 1 $ 6 $ 12 $ 80 operating margin % ( 10.5 ) % 26.0 % 0.2 % 1.5 % 3.1 % 20.3 % ( a ) volume/sales mix computed based on contribution margin . operating income increased $ 111 million in 2020. the improvement was primarily driven by the 40 percent increase in lumber sales prices and lower costs driven by the curtailments of production in the early part of 2020. additionally the company reversed $ 21 million of prior expenses related to import duties as the usdoc announced its final determination in december 2020 to reduce the duties on canadian softwood lumber imported into the u.s. from 20 percent to 9 percent for such duties paid during 2017 and 2018. the years ended december 31 , 2020 and 2019 include $ 10 million and $ 23 million in softwood lumber duties , respectively . duties incurred during 2020 take into account the $ 21 million reduction previously discussed . paperboard replace_table_token_8_th changes in paperboard net sales are as follows : replace_table_token_9_th total net sales declined $ 10 million , or 5 percent in 2020. paperboard sales prices declined 2 percent due to increased competition . paperboard sales volumes decreased 3 percent . 35 changes in paperboard operating income are as follows : operating income ( in millions ) gross margin changes attributable to : 2019 price volume/ sales mix ( a ) cost sg & a and other 2020 operating income $ 4 $ ( 5 ) $ ( 2 ) $ 21 $ — $ 18 operating margin % 2.0 % ( 2.5 ) % ( 1.1 ) % 11.1 % — % 9.5 % ( a ) computed based on contribution margin . operating income increased $ 14 million in 2020 due to decreased costs from lower pulp raw material prices as well as lower transportation costs . pulp & newsprint replace_table_token_10_th changes in pulp & newsprint net sales are as follows : net sales ( in millions ) 2019 changes attributable to : 2020 price volume/mix pulp $ 128 $ ( 8 ) $ 5 $ 125 newsprint 87 ( 12 ) ( 28 ) 47 total net sales $ 215 $ ( 20 ) $ ( 23 ) $ 172 ( a ) average sales prices and volumes for external sales only . the pulp segment sold approximately 66,000 metric tons and 66,000 metric tons of high-yield pulp for $ 23 million and $ 25 million to the paperboard segment for the production of paperboard during 2020 and 2019 , respectively . total net sales declined $ 43 million , or 20 percent , in 2020. average pulp sales prices declined 6 percent due to weak market conditions during 2020. pulp sales volumes increased 5 percent . newsprint sales prices and volumes declined 20 percent and 33 percent , respectively , due to weak demand and market-related downtime resulting from the covid-19 pandemic . changes in pulp & newsprint operating income are as follows : operating income ( in millions ) gross margin changes attributable to : 2019 price volume/ sales mix ( a ) cost sg & a and other 2020 operating income $ 2 $ ( 20 ) $ ( 13 ) $ 5 $ 1 $ ( 25 ) operating margin % 0.8 % ( 10.2 ) % ( 8.7 ) % 2.9 % 0.6 % ( 14.6 ) % ( a ) computed based on contribution margin . operating income for pulp & newsprint decreased $ 27 million during 2020 , driven by lower pulp and newsprint prices and newsprint volumes , partly offset by higher pulp sales volumes . costs improved primarily from lower transportation expenses , partially offset by higher energy costs . 36 corporate replace_table_token_11_th the operating loss for corporate decreased by $ 12 million to $ 53 million in 2020 , when compared to 2019 , primarily due to lower

debt and finance leases . other components of net periodic benefit ( expense ) changed by $ 11 million to a $ 6 million benefit during 2020 as a result of a $ 3 million pension settlement and curtailment gain recorded during the fourth quarter of 2020 whereas 2019 included a $ 9 million pension net settlement loss . see note 18 — employee benefit plans . income taxes the effective tax benefit rate for 2020 was a benefit of 101 percent . the 2020 effective tax rate benefit differs from the federal statutory rate of 21 percent primarily due to benefits from the cares act , the release of certain valuation allowances related to nondeductible interest expense , tax return to accrual adjustments , and tax credits , partially offset by increases to uncertain tax position reserves , nondeductible executive compensation , and lower tax deductions on vested stock compensation . the 2019 effective tax rate from continuing operations was a benefit of 20 percent . see note 20 — income taxes of our consolidated financial statements for additional information . discontinued operations the company has presented the operating results for its matane operations , which were sold in november 2019 , as discontinued operations for the years ended december 31 , 2020 , 2019 and 2018. included in discontinued operations is allocated interest expense for debt that was required to be repaid upon completion of the sale . in addition , legal and administrative costs to sell the operations are included in discontinued operations . income from discontinued operations during the year ended december 31 , 2020 included a $ 1 million benefit resulting from the final working capital adjustment as required by the sale 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. ```debt and finance leases . other components of net periodic benefit ( expense ) changed by $ 11 million to a $ 6 million benefit during 2020 as a result of a $ 3 million pension settlement and curtailment gain recorded during the fourth quarter of 2020 whereas 2019 included a $ 9 million pension net settlement loss . see note 18 — employee benefit plans . income taxes the effective tax benefit rate for 2020 was a benefit of 101 percent . the 2020 effective tax rate benefit differs from the federal statutory rate of 21 percent primarily due to benefits from the cares act , the release of certain valuation allowances related to nondeductible interest expense , tax return to accrual adjustments , and tax credits , partially offset by increases to uncertain tax position reserves , nondeductible executive compensation , and lower tax deductions on vested stock compensation . the 2019 effective tax rate from continuing operations was a benefit of 20 percent . see note 20 — income taxes of our consolidated financial statements for additional information . discontinued operations the company has presented the operating results for its matane operations , which were sold in november 2019 , as discontinued operations for the years ended december 31 , 2020 , 2019 and 2018. included in discontinued operations is allocated interest expense for debt that was required to be repaid upon completion of the sale . in addition , legal and administrative costs to sell the operations are included in discontinued operations . income from discontinued operations during the year ended december 31 , 2020 included a $ 1 million benefit resulting from the final working capital adjustment as required by the sale agreement . ``` Suspicious Activity Report : in september 2019 , we announced our board of directors determined to suspend the quarterly common stock dividend to improve cash flow . 26 in september 2018 , we sold our resins business for $ 17 million , a non-core asset originally acquired as part of our acquisition of tembec . the resulting gain on sale of $ 7 million was treated as an adjustment to the bargain purchase gain in 2018. high purity cellulose we manufacture and market high purity cellulose , which is sold as either cellulose specialties or commodity products . we are the leading global producer of cellulose specialties , which are primarily used in dissolving chemical applications that require a highly purified form of cellulose . pricing for our cellulose specialties products is typically set by contract for a duration of at least one year based on discussions with customers . our commodity products primarily consist of commodity viscose and absorbent materials . commodity viscose is a raw material required for the manufacture of viscose staple fibers which are used in woven and non-woven applications . absorbent materials , typically referred to as fluff fibers , are used as an absorbent medium in consumer products . pricing for commodity products is typically referenced to published indexes or based on publicly available spot market prices . sales of chemicals and energy , a majority of which are by-products , are included in the high purity cellulose segment . our four production facilities , located in the u.s. , canada and france , have a combined annual production capacity of approximately 775,000 metric tons of cellulose specialties or commodity products . additionally , we have dedicated approximately 250,000 metric tons of annual production to commodity products . wood fiber , chemicals , and energy represent approximately 28 percent , 14 percent and 6 percent , respectively , of the per metric ton cost of sales . labor , manufacturing and maintenance supplies , depreciation , manufacturing overhead and transportation costs represent the remaining cost of sales . forest products we manufacture and market high-quality construction-grade lumber in north america . the lumber , primarily spruce , pine , or fir , is used in the construction of residential and multi-family homes , light industrial and commercial facilities , and the home repair and remodel markets . the chips , manufactured as a by-product of the lumber manufacturing process , are used in our canadian high purity cellulose , pulp and newsprint plants . pricing for lumber is typically referenced to published indexes marketed through our internal sales team . our six production facilities located in canada have a targeted annual production capacity of approximately 755 million board feet of lumber . wood fiber and energy represents approximately 46 percent and 4 percent , respectively , of the per million board feet cost of sales . labor , manufacturing and maintenance supplies , depreciation , manufacturing overhead and transportation costs represent the remaining cost of sales . paperboard we manufacture and market paperboard that is used for printing documents , brochures , promotional materials , packaging , paperback book or catalog covers , file folders , tags , and tickets . pricing for paperboard is typically referenced to published indices and marketed through our internal sales team . our production facility located in canada has the capacity to annually produce 180,000 metric tons of paperboard . wood pulp , chemicals , and energy represent approximately 60 percent , 15 percent and 6 percent , respectively , of the per metric ton cost of sales . labor , manufacturing and maintenance supplies , depreciation , manufacturing overhead and transportation costs represent the remaining cost of sales . pulp & newsprint pulp we manufacture and market high-yield pulp which is used by paper manufacturers to produce paperboard , packaging , printing and writing papers and a variety of other paper products . pricing for high-yield pulp is typically referenced to published indexes marketed through our internal sales team . our production facility located in canada has the capacity to annually produce 300,000 metric tons of high-yield pulp . wood fiber , chemicals , and energy represent approximately 22 percent , 12 percent and 11 percent , respectively , of the per metric ton cost of sales . labor , manufacturing and maintenance supplies , depreciation , manufacturing overhead and transportation costs represent the remaining cost of sales . newsprint 27 we manufacture newsprint , a paper grade used to print newspapers , advertising materials and other publications . pricing for newsprint is typically referenced to published indices and marketed through our internal sales team . our production facility located in canada has the capacity to annually produce 205,000 metric tons of newsprint . wood fiber and chemicals represent approximately 13 percent and 4 percent , respectively , of the per metric ton cost of sales . labor , energy , manufacturing and maintenance supplies , depreciation , manufacturing overhead and transportation costs represent the remaining cost of sales . market assessment the market assessment represents our best current estimate of each business in this environment . high purity cellulose we are experiencing increased strong demand for our commodity products and stable demand for our high-value cellulose specialties products . prices for cellulose specialties are expected to decline slightly relative to 2020 while prices for commodity products , fluff and viscose pulps , will increase significantly in the first quarter and are forecasted to remain elevated for the near-term . overall , we expect increased pricing from 2020 levels while total volumes and mix for 2021 are expected to remain steady compared to 2020 as increased productivity will be offset by an extended maintenance outage at the jesup facility in the second quarter . key costs , including wood , energy and commodity chemical prices declined in 2020 from prior year levels due to both market conditions and our strategic actions . story_separator_special_tag in connection with the early repayment of the senior secured credit facility , we recorded a loss from extinguishment of long-term debt of $ 8 million , primarily from writing off unamortized deferred financing fees . for additional information , see note 10 — story_separator_special_tag 6.5 % 0.2 % 0.7 % ( a ) volume/sales mix computed based on contribution margin . operating income remained essentially flat in 2020 when compared to the prior year . lower wood and chemical costs , improved reliability and higher commodity volumes were offset by the impact of lower cellulose specialty volumes and commodity sale price declines during 2020. included in sg & a and other costs is our share of the loss of the lignin joint venture of $ 4 million and $ 5 million during 2020 and 2019 , respectively . forest products replace_table_token_7_th 34 changes in forest products net sales are as follows : net sales ( in millions ) 2019 changes attributable to : 2020 price vol/mix/other ( a ) lumber $ 230 $ 92 $ ( 3 ) $ 319 other sales ( a ) 69 — 4 73 total net sales $ 299 $ 92 $ 1 $ 392 ( a ) other sales include sales of logs , wood chips , and other by-products to third-parties and other segments . total net sales increased $ 93 million , or 31 percent , in 2020. lumber sales prices improved 40 percent due to strong demand while lumber sales volumes decreased by 1 percent as a result of market downtime taken in the first half of the year to address the initial negative impact on demand driven by the covid-19 pandemic . other sales were up from higher wood chip sales during the year ended december 31 , 2020. changes in forest products operating income are as follows : operating income ( in millions ) gross margin changes attributable to : 2019 price volume/ sales mix ( a ) cost sg & a and other 2020 operating income $ ( 31 ) $ 92 $ 1 $ 6 $ 12 $ 80 operating margin % ( 10.5 ) % 26.0 % 0.2 % 1.5 % 3.1 % 20.3 % ( a ) volume/sales mix computed based on contribution margin . operating income increased $ 111 million in 2020. the improvement was primarily driven by the 40 percent increase in lumber sales prices and lower costs driven by the curtailments of production in the early part of 2020. additionally the company reversed $ 21 million of prior expenses related to import duties as the usdoc announced its final determination in december 2020 to reduce the duties on canadian softwood lumber imported into the u.s. from 20 percent to 9 percent for such duties paid during 2017 and 2018. the years ended december 31 , 2020 and 2019 include $ 10 million and $ 23 million in softwood lumber duties , respectively . duties incurred during 2020 take into account the $ 21 million reduction previously discussed . paperboard replace_table_token_8_th changes in paperboard net sales are as follows : replace_table_token_9_th total net sales declined $ 10 million , or 5 percent in 2020. paperboard sales prices declined 2 percent due to increased competition . paperboard sales volumes decreased 3 percent . 35 changes in paperboard operating income are as follows : operating income ( in millions ) gross margin changes attributable to : 2019 price volume/ sales mix ( a ) cost sg & a and other 2020 operating income $ 4 $ ( 5 ) $ ( 2 ) $ 21 $ — $ 18 operating margin % 2.0 % ( 2.5 ) % ( 1.1 ) % 11.1 % — % 9.5 % ( a ) computed based on contribution margin . operating income increased $ 14 million in 2020 due to decreased costs from lower pulp raw material prices as well as lower transportation costs . pulp & newsprint replace_table_token_10_th changes in pulp & newsprint net sales are as follows : net sales ( in millions ) 2019 changes attributable to : 2020 price volume/mix pulp $ 128 $ ( 8 ) $ 5 $ 125 newsprint 87 ( 12 ) ( 28 ) 47 total net sales $ 215 $ ( 20 ) $ ( 23 ) $ 172 ( a ) average sales prices and volumes for external sales only . the pulp segment sold approximately 66,000 metric tons and 66,000 metric tons of high-yield pulp for $ 23 million and $ 25 million to the paperboard segment for the production of paperboard during 2020 and 2019 , respectively . total net sales declined $ 43 million , or 20 percent , in 2020. average pulp sales prices declined 6 percent due to weak market conditions during 2020. pulp sales volumes increased 5 percent . newsprint sales prices and volumes declined 20 percent and 33 percent , respectively , due to weak demand and market-related downtime resulting from the covid-19 pandemic . changes in pulp & newsprint operating income are as follows : operating income ( in millions ) gross margin changes attributable to : 2019 price volume/ sales mix ( a ) cost sg & a and other 2020 operating income $ 2 $ ( 20 ) $ ( 13 ) $ 5 $ 1 $ ( 25 ) operating margin % 0.8 % ( 10.2 ) % ( 8.7 ) % 2.9 % 0.6 % ( 14.6 ) % ( a ) computed based on contribution margin . operating income for pulp & newsprint decreased $ 27 million during 2020 , driven by lower pulp and newsprint prices and newsprint volumes , partly offset by higher pulp sales volumes . costs improved primarily from lower transportation expenses , partially offset by higher energy costs . 36 corporate replace_table_token_11_th the operating loss for corporate decreased by $ 12 million to $ 53 million in 2020 , when compared to 2019 , primarily due to lower

20 page 25 c^ < l3q6 * 4v9 % c : mg results of several major equity market indexes for 2019 are as follows : s & p 500 index 31.5 % nasdaq composite index ( 1 ) 35.2 % russell 2000 index 25.5 % msci eafe ( europe , australasia , and far east ) index 22.7 % msci emerging markets index 18.9 % ( 1 ) returns exclude dividends global bond returns were broadly positive , as longer-term government bond yields in developed markets declined and various central banks enacted new stimulus measures . in the u.s. , the federal reserve reduced the federal funds target rate to a range of 1.50 % -1.75 % by the end of the year . the 10-year treasury note yield decreased from 2.69 % to 1.92 % at year-end , though above its late-summer lows , which were around 1.50 % . in the u.s. , the investment-grade bond market , long-term treasuries and corporate bonds fared best . mortgage-backed securities advanced to a lesser extent , hindered by an increase in mortgage prepayments and refinancing activity . municipal bonds did well amid solid demand but slightly underperformed taxable securities . high yield bonds advanced strongly for the year as investors embraced riskier assets and searched for higher yields because of falling interest rates . bonds in developed non-u.s. markets produced positive returns in u.s. dollar terms , as the dollar weakened against most major currencies and government bond yields generally declined . in the eurozone , the european central bank decided to cut its short-term benchmark rate deeper into negative territory in september . on november 1 , the european central bank resumed its quantitative easing program and began purchasing 20 billion of securities every month . emerging markets debt appreciated strongly in dollar terms . bonds denominated in u.s. dollars outperformed local currency debt , as a few key emerging markets currencies declined against the dollar . results of several major bond market indexes for 2019 are as follows : bloomberg barclays u.s. aggregate bond index 8.7 % jpmorgan global high yield index 14.6 % bloomberg barclays municipal bond index 7.5 % bloomberg barclays global aggregate ex-u.s. dollar bond index 5.1 % jpmorgan emerging markets bond index plus 12.6 % 20 page 26 c^ < l3q6 * 4v9 % c : mg assets under management . assets under management ended 2019 at $ 1,206.8 billion , an increase of $ 244.5 billion from the end of 2018 story_separator_special_tag style= `` font-family : arial ; font-size:10pt ; `` > in 2018 , investment advisory revenues increased 12.9 % over the comparable 2017 period as average assets under our management increased $ 127.5 billion , or 14.0 % , to $ 1,036.5 billion . the average annualized fee rate earned on our assets under management was 46.8 basis points in 2018 , compared with 47.3 basis points earned in 2017 . our effective fee rate declined in part due to client transfers within the complex to lower fee vehicles or share classes and , to a lesser extent , fee reductions we made to certain mutual funds and other products since 2017 . further 20 page 30 c^ < l3q6 * 4v9 % c : mg contributing to our lower effective fee rate in 2018 was a greater percentage of our assets under management in lower fee products due to lower equity valuations in the fourth quarter of 2018 . operating expenses . operating expenses were $ 3,230.9 million in 2019 , an increase of 7.3 % over the comparable 2018 period . the increase in operating expenses was primarily due to greater market-related compensation expense related to the supplemental savings plan liability , higher salaries and benefits , higher bonus and stock-based compensation expense and the cost of our continued strategic investments . the 2018 period also includes the non-recurring $ 15.2 million reduction in operating expenses related to the conclusion of the dell appraisal rights matter . the higher expense related to the supplemental savings plan in 2019 is partially offset by non-operating gains earned on the investments used to hedge the related liability . for 2018 , operating expenses were $ 3,011.2 million as compared with $ 2,746.1 million in the 2017 period . the increase in operating expenses was primarily due to our continued strategic investments and higher bonus and stock-based compensation , which were driven by our 2018 operating results . on a non-gaap basis , our operating expenses in 2019 increased 4.1 % to $ 3,149.8 million compared with 2018 . in 2018 , our non-gaap operating expenses increased 8.9 % to $ 3,025.5 million compared with 2017 . our non-gaap operating expenses exclude the impacts of our supplemental savings plan , investment income related to certain other investments , our consolidated t. rowe price investment products , and certain non-recurring items . see our non-gaap reconciliations later in this management 's discussion and analysis section . our 2017 and 2018 operating expenses include certain financial impacts related to the dell appraisal rights matter as further discussed in note 14 to our consolidated financial statements . a summary of the financial impact of the dell appraisal rights matter on our annual pre-tax operating expenses and pre-tax operating cash flows since the matter arose in 2016 is as follows : replace_table_token_11_th there was no operating expense or cash flows impact related to the dell appraisal rights matter in 2019. in 2020 , we expect to advance our strategic priorities to sustain and deepen our investment talent , add investment capabilities both in terms of new strategies and new investment vehicles , expand capabilities through enhanced technology , and broaden our distribution reach globally . we currently expect our 2020 non-gaap operating expenses to grow in the range of 6 % to 9 % . story_separator_special_tag these measures have been established in order to increase transparency for the purpose of evaluating our core business , for comparing current results with prior period results , and to enable more appropriate comparison with industry peers . however , non-gaap financial measures should not be considered a substitute for financial measures calculated in accordance with u.s. gaap and may be calculated differently by other companies . the following schedules reconcile certain u.s. gaap financial measures for each of the last five years . replace_table_token_18_th 20 page 37 c^ < l3q6 * 4v9 % c : mg replace_table_token_19_th replace_table_token_20_th replace_table_token_21_th 20 page 38 c^ < l3q6 * 4v9 % c : mg replace_table_token_22_th ( 1 ) these non-gaap adjustments remove the impact the consolidated t. rowe price investment products have on our u.s. gaap consolidated statements of income . specifically , we add back the operating expenses and subtract the investment income of the consolidated t. rowe price investment products . the adjustment to our operating expenses represents the operating expenses of the consolidated products , net of the elimination of related management and administrative fees . the adjustment to net income attributable to t. rowe price group represents the net income of the consolidated products , net of redeemable non-controlling interest . we remove the impact of the consolidated t. rowe price investment products as we believe they impact the reader 's ability to understand our core operating results . ( 2 ) these non-gaap adjustments remove the compensation expense from market valuation changes in the supplemental savings plan liability and the related net gains ( losses ) on investments designated as an economic hedge against the related liability . amounts deferred under the supplemental savings plan are adjusted for appreciation ( depreciation ) of hypothetical investments chosen by participants . we use t. rowe price investment products to economically hedge the exposure to these market movements . we believe it is useful to offset the non-operating investment income ( loss ) realized on the hedges against the related compensation expense and remove the net impact to help the reader 's ability to understand our core operating results and to increase comparability period to period . ( 3 ) this non-gaap adjustment represents the other non-operating income ( loss ) and the net gains ( losses ) earned on our non-consolidated investment portfolio that are not designated as economic hedges of the supplemental savings plan liability , and , beginning in the second quarter of 2018 , non-consolidated seed investments and other investments that are not part of the cash and discretionary investment portfolio . in the second quarter of 2018 , we decided to retain the investment gains recognized on our non-consolidated cash and discretionary investments as these assets and related income ( loss ) are considered part of our core operations . the impact on previously reported non-gaap measures is immaterial . we believe adjusting for these non-operating income ( loss ) items helps the reader 's ability to understand our core operating results and increases comparability to prior years . additionally , we do not emphasize the impact of the portion of non-operating income ( loss ) removed when managing and evaluating our core performance . ( 4 ) during the second quarter of 2018 , we recognized a nonrecurring charge of $ 20.8 million for an adjustment made to the charge taken in 2017 related to the enactment of u.s. tax reform . we believe it is useful to readers of our consolidated statements of income to adjust for this nonrecurring charge in arriving at net income attributable to t. rowe price group and diluted earnings per share . ( 5 ) during the second quarter of 2018 , we recognized a nonrecurring charge of $ 7.9 million for the remeasurement of our deferred tax assets and liabilities to reflect the effect of maryland state tax legislation enacted on april 24 , 2018. we believe it is useful to readers of our consolidated statements of income to adjust for this nonrecurring charge in arriving at net income attributable to t. rowe price group and diluted earnings per share . ( 6 ) in 2016 , we recognized a nonrecurring charge , net of insurance recoveries , of $ 66.2 million related to our decision to compensate certain clients in regard to the dell appraisal rights matter . in 2017 , we recognized additional insurance recoveries of $ 50 million as a reduction in operating expenses . during 2018 , we recognized an additional reduction in operating expenses of $ 15.2 million upon recovering a portion of the payments we made to our clients in 2016. we believe it is useful to our readers of our consolidated statements of income to adjust for these charges and nonrecurring recoveries in arriving at adjusted operating expenses , net operating income , provision for income taxes , net income attributable to t. rowe price group and diluted earnings per share . 20 page 39 c^ < l3q6 * 4v9 % c : mg ( 7 ) the income tax impacts were calculated in order to achieve an overall non-gaap effective tax rate of 24.0 % for 2019 , 24.1 % for 2018 , 34.7 % for 2017 , 36.6 % for 2016 , and 38.9 % for 2015. we estimate that our effective tax rate for the full-year 2020 on a non-gaap basis will be in the range of 23.5 % to 25.5 % . ( 8 ) this non-gaap measure was calculated by applying the two-class method to adjusted net income attributable to t. rowe price group divided by the weighted-average common shares outstanding assuming dilution . the calculation of net income allocated to common stockholders is as follows : replace_table_token_23_th capital resources and liquidity . during 2019 , stockholders ' equity increase d from $ 6.1 billion to $ 7.1 billion . tangible book value increased to $ 6.4 billion at december 31 , 2019 . sources

. net cash inflows of $ 13.2 billion for 2019 , combined with market appreciation and income , net of distributions not reinvested , increased our assets under management by $ 231.3 billion . the following table details changes in our assets under management by vehicle during the last three years : replace_table_token_6_th ( 1 ) in all three years , the majority of the client transfers were from the t. rowe price u.s. mutual funds to the t. rowe price collective investment trusts , which are included in other investment products . 20 page 27 c^ < l3q6 * 4v9 % c : mg the following table details changes in our assets under management by asset class during the last three years : replace_table_token_7_th ( 1 ) the underlying assets under management of the multi-asset portfolios have been aggregated and presented in this category and not reported in the equity and fixed income columns . ( 2 ) reported net of distributions not reinvested . investment advisory clients outside the u.s. account for 6.9 % of our assets under management at december 31 , 2019 , and 6.2 % at december 31 , 2018 . our net cash flows in 2019 , 2018 , and 2017 were driven by diversified inflows across distribution channels and geographies , the strength of our multi-asset franchise , and positive flows into fixed income and international equity . our target date retirement products , which are included in the multi-asset totals shown above , continue to be a significant part of our assets under management . net cash flows after client transfers shown above include $ 9.8 billion in 2019 , $ 12.0 billion in 2018 , and $ 7.1 billion in 2017 from the target date retirement 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. ```. net cash inflows of $ 13.2 billion for 2019 , combined with market appreciation and income , net of distributions not reinvested , increased our assets under management by $ 231.3 billion . the following table details changes in our assets under management by vehicle during the last three years : replace_table_token_6_th ( 1 ) in all three years , the majority of the client transfers were from the t. rowe price u.s. mutual funds to the t. rowe price collective investment trusts , which are included in other investment products . 20 page 27 c^ < l3q6 * 4v9 % c : mg the following table details changes in our assets under management by asset class during the last three years : replace_table_token_7_th ( 1 ) the underlying assets under management of the multi-asset portfolios have been aggregated and presented in this category and not reported in the equity and fixed income columns . ( 2 ) reported net of distributions not reinvested . investment advisory clients outside the u.s. account for 6.9 % of our assets under management at december 31 , 2019 , and 6.2 % at december 31 , 2018 . our net cash flows in 2019 , 2018 , and 2017 were driven by diversified inflows across distribution channels and geographies , the strength of our multi-asset franchise , and positive flows into fixed income and international equity . our target date retirement products , which are included in the multi-asset totals shown above , continue to be a significant part of our assets under management . net cash flows after client transfers shown above include $ 9.8 billion in 2019 , $ 12.0 billion in 2018 , and $ 7.1 billion in 2017 from the target date retirement products . ``` Suspicious Activity Report : 20 page 25 c^ < l3q6 * 4v9 % c : mg results of several major equity market indexes for 2019 are as follows : s & p 500 index 31.5 % nasdaq composite index ( 1 ) 35.2 % russell 2000 index 25.5 % msci eafe ( europe , australasia , and far east ) index 22.7 % msci emerging markets index 18.9 % ( 1 ) returns exclude dividends global bond returns were broadly positive , as longer-term government bond yields in developed markets declined and various central banks enacted new stimulus measures . in the u.s. , the federal reserve reduced the federal funds target rate to a range of 1.50 % -1.75 % by the end of the year . the 10-year treasury note yield decreased from 2.69 % to 1.92 % at year-end , though above its late-summer lows , which were around 1.50 % . in the u.s. , the investment-grade bond market , long-term treasuries and corporate bonds fared best . mortgage-backed securities advanced to a lesser extent , hindered by an increase in mortgage prepayments and refinancing activity . municipal bonds did well amid solid demand but slightly underperformed taxable securities . high yield bonds advanced strongly for the year as investors embraced riskier assets and searched for higher yields because of falling interest rates . bonds in developed non-u.s. markets produced positive returns in u.s. dollar terms , as the dollar weakened against most major currencies and government bond yields generally declined . in the eurozone , the european central bank decided to cut its short-term benchmark rate deeper into negative territory in september . on november 1 , the european central bank resumed its quantitative easing program and began purchasing 20 billion of securities every month . emerging markets debt appreciated strongly in dollar terms . bonds denominated in u.s. dollars outperformed local currency debt , as a few key emerging markets currencies declined against the dollar . results of several major bond market indexes for 2019 are as follows : bloomberg barclays u.s. aggregate bond index 8.7 % jpmorgan global high yield index 14.6 % bloomberg barclays municipal bond index 7.5 % bloomberg barclays global aggregate ex-u.s. dollar bond index 5.1 % jpmorgan emerging markets bond index plus 12.6 % 20 page 26 c^ < l3q6 * 4v9 % c : mg assets under management . assets under management ended 2019 at $ 1,206.8 billion , an increase of $ 244.5 billion from the end of 2018 story_separator_special_tag style= `` font-family : arial ; font-size:10pt ; `` > in 2018 , investment advisory revenues increased 12.9 % over the comparable 2017 period as average assets under our management increased $ 127.5 billion , or 14.0 % , to $ 1,036.5 billion . the average annualized fee rate earned on our assets under management was 46.8 basis points in 2018 , compared with 47.3 basis points earned in 2017 . our effective fee rate declined in part due to client transfers within the complex to lower fee vehicles or share classes and , to a lesser extent , fee reductions we made to certain mutual funds and other products since 2017 . further 20 page 30 c^ < l3q6 * 4v9 % c : mg contributing to our lower effective fee rate in 2018 was a greater percentage of our assets under management in lower fee products due to lower equity valuations in the fourth quarter of 2018 . operating expenses . operating expenses were $ 3,230.9 million in 2019 , an increase of 7.3 % over the comparable 2018 period . the increase in operating expenses was primarily due to greater market-related compensation expense related to the supplemental savings plan liability , higher salaries and benefits , higher bonus and stock-based compensation expense and the cost of our continued strategic investments . the 2018 period also includes the non-recurring $ 15.2 million reduction in operating expenses related to the conclusion of the dell appraisal rights matter . the higher expense related to the supplemental savings plan in 2019 is partially offset by non-operating gains earned on the investments used to hedge the related liability . for 2018 , operating expenses were $ 3,011.2 million as compared with $ 2,746.1 million in the 2017 period . the increase in operating expenses was primarily due to our continued strategic investments and higher bonus and stock-based compensation , which were driven by our 2018 operating results . on a non-gaap basis , our operating expenses in 2019 increased 4.1 % to $ 3,149.8 million compared with 2018 . in 2018 , our non-gaap operating expenses increased 8.9 % to $ 3,025.5 million compared with 2017 . our non-gaap operating expenses exclude the impacts of our supplemental savings plan , investment income related to certain other investments , our consolidated t. rowe price investment products , and certain non-recurring items . see our non-gaap reconciliations later in this management 's discussion and analysis section . our 2017 and 2018 operating expenses include certain financial impacts related to the dell appraisal rights matter as further discussed in note 14 to our consolidated financial statements . a summary of the financial impact of the dell appraisal rights matter on our annual pre-tax operating expenses and pre-tax operating cash flows since the matter arose in 2016 is as follows : replace_table_token_11_th there was no operating expense or cash flows impact related to the dell appraisal rights matter in 2019. in 2020 , we expect to advance our strategic priorities to sustain and deepen our investment talent , add investment capabilities both in terms of new strategies and new investment vehicles , expand capabilities through enhanced technology , and broaden our distribution reach globally . we currently expect our 2020 non-gaap operating expenses to grow in the range of 6 % to 9 % . story_separator_special_tag these measures have been established in order to increase transparency for the purpose of evaluating our core business , for comparing current results with prior period results , and to enable more appropriate comparison with industry peers . however , non-gaap financial measures should not be considered a substitute for financial measures calculated in accordance with u.s. gaap and may be calculated differently by other companies . the following schedules reconcile certain u.s. gaap financial measures for each of the last five years . replace_table_token_18_th 20 page 37 c^ < l3q6 * 4v9 % c : mg replace_table_token_19_th replace_table_token_20_th replace_table_token_21_th 20 page 38 c^ < l3q6 * 4v9 % c : mg replace_table_token_22_th ( 1 ) these non-gaap adjustments remove the impact the consolidated t. rowe price investment products have on our u.s. gaap consolidated statements of income . specifically , we add back the operating expenses and subtract the investment income of the consolidated t. rowe price investment products . the adjustment to our operating expenses represents the operating expenses of the consolidated products , net of the elimination of related management and administrative fees . the adjustment to net income attributable to t. rowe price group represents the net income of the consolidated products , net of redeemable non-controlling interest . we remove the impact of the consolidated t. rowe price investment products as we believe they impact the reader 's ability to understand our core operating results . ( 2 ) these non-gaap adjustments remove the compensation expense from market valuation changes in the supplemental savings plan liability and the related net gains ( losses ) on investments designated as an economic hedge against the related liability . amounts deferred under the supplemental savings plan are adjusted for appreciation ( depreciation ) of hypothetical investments chosen by participants . we use t. rowe price investment products to economically hedge the exposure to these market movements . we believe it is useful to offset the non-operating investment income ( loss ) realized on the hedges against the related compensation expense and remove the net impact to help the reader 's ability to understand our core operating results and to increase comparability period to period . ( 3 ) this non-gaap adjustment represents the other non-operating income ( loss ) and the net gains ( losses ) earned on our non-consolidated investment portfolio that are not designated as economic hedges of the supplemental savings plan liability , and , beginning in the second quarter of 2018 , non-consolidated seed investments and other investments that are not part of the cash and discretionary investment portfolio . in the second quarter of 2018 , we decided to retain the investment gains recognized on our non-consolidated cash and discretionary investments as these assets and related income ( loss ) are considered part of our core operations . the impact on previously reported non-gaap measures is immaterial . we believe adjusting for these non-operating income ( loss ) items helps the reader 's ability to understand our core operating results and increases comparability to prior years . additionally , we do not emphasize the impact of the portion of non-operating income ( loss ) removed when managing and evaluating our core performance . ( 4 ) during the second quarter of 2018 , we recognized a nonrecurring charge of $ 20.8 million for an adjustment made to the charge taken in 2017 related to the enactment of u.s. tax reform . we believe it is useful to readers of our consolidated statements of income to adjust for this nonrecurring charge in arriving at net income attributable to t. rowe price group and diluted earnings per share . ( 5 ) during the second quarter of 2018 , we recognized a nonrecurring charge of $ 7.9 million for the remeasurement of our deferred tax assets and liabilities to reflect the effect of maryland state tax legislation enacted on april 24 , 2018. we believe it is useful to readers of our consolidated statements of income to adjust for this nonrecurring charge in arriving at net income attributable to t. rowe price group and diluted earnings per share . ( 6 ) in 2016 , we recognized a nonrecurring charge , net of insurance recoveries , of $ 66.2 million related to our decision to compensate certain clients in regard to the dell appraisal rights matter . in 2017 , we recognized additional insurance recoveries of $ 50 million as a reduction in operating expenses . during 2018 , we recognized an additional reduction in operating expenses of $ 15.2 million upon recovering a portion of the payments we made to our clients in 2016. we believe it is useful to our readers of our consolidated statements of income to adjust for these charges and nonrecurring recoveries in arriving at adjusted operating expenses , net operating income , provision for income taxes , net income attributable to t. rowe price group and diluted earnings per share . 20 page 39 c^ < l3q6 * 4v9 % c : mg ( 7 ) the income tax impacts were calculated in order to achieve an overall non-gaap effective tax rate of 24.0 % for 2019 , 24.1 % for 2018 , 34.7 % for 2017 , 36.6 % for 2016 , and 38.9 % for 2015. we estimate that our effective tax rate for the full-year 2020 on a non-gaap basis will be in the range of 23.5 % to 25.5 % . ( 8 ) this non-gaap measure was calculated by applying the two-class method to adjusted net income attributable to t. rowe price group divided by the weighted-average common shares outstanding assuming dilution . the calculation of net income allocated to common stockholders is as follows : replace_table_token_23_th capital resources and liquidity . during 2019 , stockholders ' equity increase d from $ 6.1 billion to $ 7.1 billion . tangible book value increased to $ 6.4 billion at december 31 , 2019 . sources

intific brings us a wide range of expertise including computer simulation , animation , human-machine interaction , robotics , neuroscience , visualization , gaming , and artificial intelligence . intific performs work funded by the defense advanced research projects agency ( darpa ) and other u.s. government agencies ; however , most of intific 's r & d activities are included in cost of sales as they are directly related to contract performance . we selectively pursue the acquisition of businesses that complement our current portfolio and allow access to new customers or technologies . in pursuing our business strategy , we routinely conduct discussions , evaluate targets , and enter into agreements regarding possible acquisitions . as part of our business strategy , we seek to identify acquisition opportunities that will expand or complement our existing products and services , or customer base , at attractive valuations . in fiscal 2015 and 2016 , we acquired dtech , gatr , and teralogics in connection with our strategic efforts to build and expand our command , control , communication , computers , intelligence , surveillance and reconnaissance ( c4isr ) business . in the third quarter of fiscal 2016 we formalized the structure of cubic mission solutions ( cms ) , our business unit which combines and integrates our c4isr and secure communications operations . we have also made a number of niche acquisitions of businesses during the past several years , including , intific , inc. in february 2014 and intelligent transport management solutions limited in november 2013. generally , our business acquisitions are dilutive to earnings in the short-term due to acquisition related costs , integration costs , retention 41 payments and often higher amortization of purchased intangibles in the early periods after acquisition and expenses related to earn-outs . however , we expect that each of these recent acquisitions will be accretive to earnings in the long-term . industry considerations the u.s. government continues to focus on discretionary spending , tax , and other initiatives to control spending and reduce the deficit . the president 's administration and congress will likely continue to debate the size and expected growth of the u.s. federal budget as well as the defense budget over the next few years and balance decisions regarding defense , homeland security , and other federal spending priorities in a constrained fiscal environment imposed by the budget control act ( bca ) and various bipartisan budget acts ( bba ) since 2011. the most recent , agreed to on november 2 , 2015 , bipartisan budget act of 2015 revised discretionary spending limits to avoid sequestration for fiscal year 2016 and fiscal year 2017. the ultimate effects of sequestration and any subsequent bipartisan budget acts beyond 2017 still can not be determined . absent a new bca or bba in 2017 , sequestration still threatens to severely limit discretionary federal funding in 2018. reductions to 2018 and beyond from current budget projections could have an impact on our customers ' procurement of products and services . while these budgetary considerations have put downward pressure on growth in the defense industry and will likely continue to do so , we believe that much of our business is well positioned in areas that the dod has indicated are areas of focus for future defense spending to help the dod meet its critical future capability requirements for protecting u.s. security and the security of our allies in the years to come . in transportation , we continue to believe that our products and services are critical to our customers to ensure that they maximize revenue and efficiencies in a resource constrained environment . some customers have responded to the current market environment by seeking financing for their projects from the system supplier . an example of this is our contract with the chicago transit authority , awarded in late 2011. we have designed and manufactured a new fare collection system for the chicago transit authority and will receive monthly payments for the system over an approximate ten-year period which began on january 1 , 2014. while future defense plans , changes in defense spending levels and changes in spending for mass transit projects could have a materially adverse effect on our consolidated financial position , we have and plan to continue to make strategic investments and acquisitions to align our businesses in growth areas of our respective markets that we believe are the most critical priorities and mission areas for our customers . segment overview cubic transportation systems cts is a systems integrator of payment and information technology and services for intelligent travel solutions . we deliver integrated systems for transportation and traffic management , delivering tools for travelers to choose the smartest and easiest way to travel and pay for their journeys , and enabling transportation authorities and agencies to manage demand across the entire transportation network — all in real time . we offer fare collection and revenue management devices , software , systems and multiagency , multimodal integration technologies , as well as a full suite of operational services that help agencies and operators efficiently collect fares and revenue , manage operations , reduce revenue leakage and make transportation more convenient . through our nextbus and intelligent transport management solutions ( itms ) businesses , respectively , we also deliver real-time passenger information systems for tracking and predicting vehicle arrival times and we are a leading provider of urban and inter-urban intelligent transportation and enforcement solutions and technology and infrastructure maintenance services to the united kingdom and other international city , regional and national road and transportation agencies . through our urban insights business we use big data and predictive analytics technology and a consulting model to help the transportation industry improve operations , reduce costs and better serve travelers . the transportation markets we serve are undergoing a substantial change . story_separator_special_tag for fiscal years 2014 and 2015 , nek was slightly dilutive to our earnings per share after consideration of the amortization of purchased intangibles and acquisition related costs . in 2016 , nek was accretive to earnings . cost reimbursable and time and materials contracts accounted for 48 % of our sales in cgd services for fiscal year 2016 , with the remaining sales derived from fixed-price contracts . revenues under cost reimbursable contracts are recognized as costs are incurred , plus the estimated fee earned under the contract terms . often these are structured as award fees based on performance and are generally accrued during the performance of the contract based on our historical experience with such awards . revenues under time and materials contracts are recognized as services are delivered based on the terms of the contract . revenues under our fixed-price service contracts with the u.s. government are recorded using the cost-to-cost percentage-of-completion method . operating overview cubic corporation sales in 2016 were $ 1.462 billion compared to $ 1.431 billion in 2015 , an increase of 2 % . increases in sales for cts and cgd systems of 3 % and 5 % , respectively , were partially offset by a 3 % decrease in cgd services sales . revenues from businesses we acquired in 2016 and 2015 , all within our cgd systems operating segment , increased our consolidated sales by 3 % from 2015 to 2016 , partially offset by decreased organic sales due primarily to changes in foreign currency exchange rates . the impact of changes in foreign currency exchange rates , particularly the strengthening of the u.s. dollar against the british pound , adversely affected our sales . the average exchange rates between the prevailing currencies in our foreign operations and the u.s. dollar had a negative impact on sales of 2 % , or $ 32.3 million in 2016 compared to 2015. cubic corporation sales in 2015 were $ 1.431 billion compared to $ 1.398 billion in 2014 , an increase of 2 % . increases in sales for cgd systems and cgd services of 15 % and 1 % , respectively , were partially offset by a 5 % decrease in cts 46 sales . revenues from businesses we acquired in 2015 and 2014 increased our consolidated sales by 4 % from 2014 to 2015. the impact of changes in foreign currency exchange rates had a negative impact on sales of 4 % , or $ 52.1 million in 2015 compared to 2014. operating income was $ 7.2 million in 2016 compared to $ 75.4 million in 2015 , a decrease of 90 % . cgd systems had an operating loss of $ 17.1 million in 2016 compared to operating income of $ 18.4 million in 2015 primarily due to the impact of purchase accounting on businesses acquired in this segment during fiscal 2016 , as further described below . businesses we acquired in 2016 and 2015 , which were all in our cgd systems segment , generated operating losses of $ 32.7 million in 2016 compared to operating income of $ 0.9 million in 2015. the vast majority of losses incurred by business acquired in 2016 was due to the impact of business purchase accounting as described in the cgd systems discussion below . cts operating income decreased by 25 % primarily related to lower profits on the transition to our follow-on fare collection contract in london , partially offset by improved profitability on contracts in chicago , sydney , and vancouver . cgd services operating income increased by 70 % in 2016 due to decreased amortization of purchased intangibles and the impact of cost saving efforts . unallocated corporate and other costs were $ 44.4 million in 2016 compared to $ 25.5 million in 2015. the increase in unallocated corporate costs is primarily related to strategic and it system resource planning as part of our one cubic initiative totaling $ 36.8 million in 2016 compared to $ 13.2 million in 2015 , partially offset by a reduction in legal and consulting expenses related to an investigation conducted by the audit committee in 2015 , for which we incurred expenses of $ 3.0 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 $ 4.0 million in 2016 compared to 2015. operating income was $ 75.4 million in 2015 compared to $ 92.5 million in 2014 , a decrease of 18 % . cgd systems operating income decreased by 31 % in 2015 from 2014 primarily due to $ 4.6 million of restructuring charges incurred in fiscal 2015. cgd services operating income decreased by 15 % in 2015 due to continued competitive pressures driving down bid prices . cts operating income increased by 15 % predominantly due to improvements in operating results on service contracts in north america . businesses we acquired in all of our segments in 2015 and 2014 generated operating losses of $ 3.9 million in 2015 compared to $ 8.3 million in 2014. unallocated corporate and other costs for fiscal 2015 were $ 25.5 million in 2015 compared to $ 8.0 million in 2014. the increase in unallocated corporate costs is primarily related to strategic and it system resource planning as part of our one cubic initiative totaling $ 13.2 million , $ 3.0 million of consulting and legal fees related to an investigation conducted by the audit committee of the board of directors and a $ 1.4 million increase in stock-based compensation that was not allocated to segment operations . 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 $ 7.8 million in 2015 compared to 2014. in 2015 we exited our global asset tracking business . this business did not generate any significant revenue in 2015 or 2014 , and had $

liquidity and capital resources our operating cash flows have been the primary source of funding for our operations , and have been a source of funding some of our business acquisitions and all of our capital expenditures . we generated positive operating cash flows in fiscal 2016 , 2015 and 2014. operating activities provided cash of $ 44.6 million , $ 89.7 million and $ 114.8 million in fiscal 2016 , 2015 and 2014 , respectively . as further described below , from 2014 to 2016 our operating cash flows have been significantly impacted by uses of cash related to our investment in a new strategic and it system resource planning system , our recent business acquisitions , and by the payment terms on some of our customer contracts . cash used in connection with the design and development of our new enterprise resource planning system ( erp ) totaled $ 45.2 million in fiscal 2016. certain costs incurred in the development of internal-use software and software applications , including external direct costs of materials and services and applicable compensation costs of employees devoted to specific software development , are capitalized as computer software costs . costs incurred outside of the application development stage , or that do not meet the capitalization requirements , are expensed as incurred . of the $ 45.2 million of cash used in 2016 in these efforts , $ 24.9 million was recognized as expense and is reflected in our 2016 cash flows used in operations , while $ 20.3 million was capitalized and is included in 2016 purchases of property , plant and equipment in investing cash flows . cash used in connection with erp design and development totaled $ 27.5 million in 2015. of this amount , $ 11.5 million was recognized as expense and is reflected in our 2015 cash flows from operations , and $ 16.0 million was capitalized and is included in 2015 purchases of property , plant and equipment in investing 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 our operating cash flows have been the primary source of funding for our operations , and have been a source of funding some of our business acquisitions and all of our capital expenditures . we generated positive operating cash flows in fiscal 2016 , 2015 and 2014. operating activities provided cash of $ 44.6 million , $ 89.7 million and $ 114.8 million in fiscal 2016 , 2015 and 2014 , respectively . as further described below , from 2014 to 2016 our operating cash flows have been significantly impacted by uses of cash related to our investment in a new strategic and it system resource planning system , our recent business acquisitions , and by the payment terms on some of our customer contracts . cash used in connection with the design and development of our new enterprise resource planning system ( erp ) totaled $ 45.2 million in fiscal 2016. certain costs incurred in the development of internal-use software and software applications , including external direct costs of materials and services and applicable compensation costs of employees devoted to specific software development , are capitalized as computer software costs . costs incurred outside of the application development stage , or that do not meet the capitalization requirements , are expensed as incurred . of the $ 45.2 million of cash used in 2016 in these efforts , $ 24.9 million was recognized as expense and is reflected in our 2016 cash flows used in operations , while $ 20.3 million was capitalized and is included in 2016 purchases of property , plant and equipment in investing cash flows . cash used in connection with erp design and development totaled $ 27.5 million in 2015. of this amount , $ 11.5 million was recognized as expense and is reflected in our 2015 cash flows from operations , and $ 16.0 million was capitalized and is included in 2015 purchases of property , plant and equipment in investing cash flows . ``` Suspicious Activity Report : intific brings us a wide range of expertise including computer simulation , animation , human-machine interaction , robotics , neuroscience , visualization , gaming , and artificial intelligence . intific performs work funded by the defense advanced research projects agency ( darpa ) and other u.s. government agencies ; however , most of intific 's r & d activities are included in cost of sales as they are directly related to contract performance . we selectively pursue the acquisition of businesses that complement our current portfolio and allow access to new customers or technologies . in pursuing our business strategy , we routinely conduct discussions , evaluate targets , and enter into agreements regarding possible acquisitions . as part of our business strategy , we seek to identify acquisition opportunities that will expand or complement our existing products and services , or customer base , at attractive valuations . in fiscal 2015 and 2016 , we acquired dtech , gatr , and teralogics in connection with our strategic efforts to build and expand our command , control , communication , computers , intelligence , surveillance and reconnaissance ( c4isr ) business . in the third quarter of fiscal 2016 we formalized the structure of cubic mission solutions ( cms ) , our business unit which combines and integrates our c4isr and secure communications operations . we have also made a number of niche acquisitions of businesses during the past several years , including , intific , inc. in february 2014 and intelligent transport management solutions limited in november 2013. generally , our business acquisitions are dilutive to earnings in the short-term due to acquisition related costs , integration costs , retention 41 payments and often higher amortization of purchased intangibles in the early periods after acquisition and expenses related to earn-outs . however , we expect that each of these recent acquisitions will be accretive to earnings in the long-term . industry considerations the u.s. government continues to focus on discretionary spending , tax , and other initiatives to control spending and reduce the deficit . the president 's administration and congress will likely continue to debate the size and expected growth of the u.s. federal budget as well as the defense budget over the next few years and balance decisions regarding defense , homeland security , and other federal spending priorities in a constrained fiscal environment imposed by the budget control act ( bca ) and various bipartisan budget acts ( bba ) since 2011. the most recent , agreed to on november 2 , 2015 , bipartisan budget act of 2015 revised discretionary spending limits to avoid sequestration for fiscal year 2016 and fiscal year 2017. the ultimate effects of sequestration and any subsequent bipartisan budget acts beyond 2017 still can not be determined . absent a new bca or bba in 2017 , sequestration still threatens to severely limit discretionary federal funding in 2018. reductions to 2018 and beyond from current budget projections could have an impact on our customers ' procurement of products and services . while these budgetary considerations have put downward pressure on growth in the defense industry and will likely continue to do so , we believe that much of our business is well positioned in areas that the dod has indicated are areas of focus for future defense spending to help the dod meet its critical future capability requirements for protecting u.s. security and the security of our allies in the years to come . in transportation , we continue to believe that our products and services are critical to our customers to ensure that they maximize revenue and efficiencies in a resource constrained environment . some customers have responded to the current market environment by seeking financing for their projects from the system supplier . an example of this is our contract with the chicago transit authority , awarded in late 2011. we have designed and manufactured a new fare collection system for the chicago transit authority and will receive monthly payments for the system over an approximate ten-year period which began on january 1 , 2014. while future defense plans , changes in defense spending levels and changes in spending for mass transit projects could have a materially adverse effect on our consolidated financial position , we have and plan to continue to make strategic investments and acquisitions to align our businesses in growth areas of our respective markets that we believe are the most critical priorities and mission areas for our customers . segment overview cubic transportation systems cts is a systems integrator of payment and information technology and services for intelligent travel solutions . we deliver integrated systems for transportation and traffic management , delivering tools for travelers to choose the smartest and easiest way to travel and pay for their journeys , and enabling transportation authorities and agencies to manage demand across the entire transportation network — all in real time . we offer fare collection and revenue management devices , software , systems and multiagency , multimodal integration technologies , as well as a full suite of operational services that help agencies and operators efficiently collect fares and revenue , manage operations , reduce revenue leakage and make transportation more convenient . through our nextbus and intelligent transport management solutions ( itms ) businesses , respectively , we also deliver real-time passenger information systems for tracking and predicting vehicle arrival times and we are a leading provider of urban and inter-urban intelligent transportation and enforcement solutions and technology and infrastructure maintenance services to the united kingdom and other international city , regional and national road and transportation agencies . through our urban insights business we use big data and predictive analytics technology and a consulting model to help the transportation industry improve operations , reduce costs and better serve travelers . the transportation markets we serve are undergoing a substantial change . story_separator_special_tag for fiscal years 2014 and 2015 , nek was slightly dilutive to our earnings per share after consideration of the amortization of purchased intangibles and acquisition related costs . in 2016 , nek was accretive to earnings . cost reimbursable and time and materials contracts accounted for 48 % of our sales in cgd services for fiscal year 2016 , with the remaining sales derived from fixed-price contracts . revenues under cost reimbursable contracts are recognized as costs are incurred , plus the estimated fee earned under the contract terms . often these are structured as award fees based on performance and are generally accrued during the performance of the contract based on our historical experience with such awards . revenues under time and materials contracts are recognized as services are delivered based on the terms of the contract . revenues under our fixed-price service contracts with the u.s. government are recorded using the cost-to-cost percentage-of-completion method . operating overview cubic corporation sales in 2016 were $ 1.462 billion compared to $ 1.431 billion in 2015 , an increase of 2 % . increases in sales for cts and cgd systems of 3 % and 5 % , respectively , were partially offset by a 3 % decrease in cgd services sales . revenues from businesses we acquired in 2016 and 2015 , all within our cgd systems operating segment , increased our consolidated sales by 3 % from 2015 to 2016 , partially offset by decreased organic sales due primarily to changes in foreign currency exchange rates . the impact of changes in foreign currency exchange rates , particularly the strengthening of the u.s. dollar against the british pound , adversely affected our sales . the average exchange rates between the prevailing currencies in our foreign operations and the u.s. dollar had a negative impact on sales of 2 % , or $ 32.3 million in 2016 compared to 2015. cubic corporation sales in 2015 were $ 1.431 billion compared to $ 1.398 billion in 2014 , an increase of 2 % . increases in sales for cgd systems and cgd services of 15 % and 1 % , respectively , were partially offset by a 5 % decrease in cts 46 sales . revenues from businesses we acquired in 2015 and 2014 increased our consolidated sales by 4 % from 2014 to 2015. the impact of changes in foreign currency exchange rates had a negative impact on sales of 4 % , or $ 52.1 million in 2015 compared to 2014. operating income was $ 7.2 million in 2016 compared to $ 75.4 million in 2015 , a decrease of 90 % . cgd systems had an operating loss of $ 17.1 million in 2016 compared to operating income of $ 18.4 million in 2015 primarily due to the impact of purchase accounting on businesses acquired in this segment during fiscal 2016 , as further described below . businesses we acquired in 2016 and 2015 , which were all in our cgd systems segment , generated operating losses of $ 32.7 million in 2016 compared to operating income of $ 0.9 million in 2015. the vast majority of losses incurred by business acquired in 2016 was due to the impact of business purchase accounting as described in the cgd systems discussion below . cts operating income decreased by 25 % primarily related to lower profits on the transition to our follow-on fare collection contract in london , partially offset by improved profitability on contracts in chicago , sydney , and vancouver . cgd services operating income increased by 70 % in 2016 due to decreased amortization of purchased intangibles and the impact of cost saving efforts . unallocated corporate and other costs were $ 44.4 million in 2016 compared to $ 25.5 million in 2015. the increase in unallocated corporate costs is primarily related to strategic and it system resource planning as part of our one cubic initiative totaling $ 36.8 million in 2016 compared to $ 13.2 million in 2015 , partially offset by a reduction in legal and consulting expenses related to an investigation conducted by the audit committee in 2015 , for which we incurred expenses of $ 3.0 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 $ 4.0 million in 2016 compared to 2015. operating income was $ 75.4 million in 2015 compared to $ 92.5 million in 2014 , a decrease of 18 % . cgd systems operating income decreased by 31 % in 2015 from 2014 primarily due to $ 4.6 million of restructuring charges incurred in fiscal 2015. cgd services operating income decreased by 15 % in 2015 due to continued competitive pressures driving down bid prices . cts operating income increased by 15 % predominantly due to improvements in operating results on service contracts in north america . businesses we acquired in all of our segments in 2015 and 2014 generated operating losses of $ 3.9 million in 2015 compared to $ 8.3 million in 2014. unallocated corporate and other costs for fiscal 2015 were $ 25.5 million in 2015 compared to $ 8.0 million in 2014. the increase in unallocated corporate costs is primarily related to strategic and it system resource planning as part of our one cubic initiative totaling $ 13.2 million , $ 3.0 million of consulting and legal fees related to an investigation conducted by the audit committee of the board of directors and a $ 1.4 million increase in stock-based compensation that was not allocated to segment operations . 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 $ 7.8 million in 2015 compared to 2014. in 2015 we exited our global asset tracking business . this business did not generate any significant revenue in 2015 or 2014 , and had $

providing ultrasonic water meter technology , combined with advanced radio technology , provides the company with the opportunity to sell into other geographical markets , for example the middle east and europe . the flow instrumentation product line includes meters and valves sold worldwide to measure and control fluids going through a pipe or pipeline including water , air , steam , oil , and other liquids and gases . these products are used in a variety of industries and applications , with the company 's primary market focus being water/wastewater ; heating , ventilating and air conditioning ( hvac ) ; oil and gas , and chemical and petrochemical . flow instrumentation products are generally sold to original equipment manufacturers as the primary flow measurement device within a product or system , as well as through manufacturers ' representatives . municipal water meters ( both residential and commercial ) are generally classified as either manually read meters or remotely read meters via radio technology . a manually read meter consists of a water meter and a register that provides a visual totalized meter reading . meters equipped with radio technology ( endpoints ) receive flow measurement data from battery-powered encoder registers attached to the water meter , which is encrypted and transmitted via radio frequency to a receiver that collects and formats the data appropriately for water utility usage and billing systems . these remotely read systems are classified as either automatic meter reading ( amr ) systems , where a vehicle equipped for meter reading purposes , including a radio receiver , computer and reading software , collects the data from utilities ' meters ; or advanced metering infrastructure ( ami ) systems , where data is gathered utilizing a network ( either fixed or cellular ) of data collectors or gateway receivers that are able to receive radio data transmission from the utilities ' meters . ami systems eliminate the need for utility personnel to drive through service territories to collect data from the meters . these systems provide the utilities with more frequent and diverse data from their meters at specified intervals . the orion branded family of radio endpoints provides water utilities with a range of industry-leading options for meter reading . these include orion migratable ( me ) for amr meter reading , orion ( se ) for traditional fixed network applications , and orion cellular for an infrastructure-free meter reading solution . orion migratable makes the migration to fixed network easier for utilities that prefer to start with mobile reading and later adopt fixed network communications , allowing utilities to choose a solution for their current needs and be positioned for their future operational changes . orion cellular eliminates the need for utility-owned fixed network infrastructure , allows for gradual or full deployment , and decreases ongoing maintenance . critical to the water metering ecosystem is information and analytics . the company 's beacon advanced metering analytics ( ama ) software suite improves the utilities ' visibility of their water and water usage . beacon ama is a secure , cloud-hosted software suite that includes a customizable dashboard , and has the ability to establish alerts for specific conditions . it also allows for consumer engagement tools that permit end water users ( such as homeowners ) to view and manage their water usage activity . benefits to the utility include improved customer service , increased visibility through faster leak detection , the ability to promote and quantify the effects of its water conservation efforts , and easier compliance reporting . water meter replacement and the adoption and deployment of new technology comprise the majority of water meter product sales , including radio products . to a much lesser extent , housing starts also contribute to the new product sales base . over the last decade , there has been a growing trend in the conversion from manually read water meters to meters with radio technology . this conversion rate is accelerating , with the company estimating that approximately just over 60 % of water meters installed in the united states have been converted to a radio solution technology . 15 the company 's net sales and corresponding net earnings depend on unit volume and product mix , with the company generally earning higher average selling prices and margins on meters equipped with radio technology , and higher margins on ultrasonic compared to mechanical meters . the company 's proprietary radio products ( i.e . orion ) , which comprise the majority of its radio sales , generally result in higher margins than remarketed , non-proprietary technology products . the company also sells registers and endpoints separately to customers who wish to upgrade their existing meters in the field . flow instrumentation products are used in flow measurement and control applications across a broad industrial spectrum , occasionally leveraging the same technologies used in the municipal water category . specialized communication protocols that control the entire flow measurement process and mandatory certifications drive these markets . the company provides both standard and customized flow instrumentation solutions . the industries served by the company 's flow instrumentation products face accelerating demands to contain costs , reduce product variability , and meet ever-changing safety , regulatory and sustainability requirements . to address these challenges , customers must reap more value from every component in their systems . this system-wide scrutiny has heightened the focus on flow instrumentation in industrial process , manufacturing , commercial fluid , building automation and precision engineering applications where flow measurement and control are critical . story_separator_special_tag the grant date fair value of stock options relies on assumptions including the risk-free interest rate , dividend yield , market volatility and expected option life . 20 in calculating the provision for income taxes on an interim basis , the company uses an estimate of the annual effective tax rate based upon the facts and circumstances known at each interim period . on a quarterly basis , the actual effective tax rate is adjusted as appropriate based upon the actual results compared to those forecasted at the beginning of the fiscal year . deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled . the reserve for uncertain income tax positions is a matter of judgment based on an evaluation of the individual facts and circumstances of each tax position in light of all available evidence , including historic data and current trends . a tax benefit is recognized when it is “ more likely than not ” to be sustained based solely on the technical merits of each tax position . the company evaluates and updates all o f these assumptions quarterly . goodwill impairment , if any , is determined by comparing the fair value of the reporting unit with its carrying value and is reviewed at least annually . actual results may differ from these estimates . other matters the company is subject to contingencies related to environmental laws and regulations . a future change in circumstances with respect to these specific matters or with respect to sites formerly or currently owned or operated by the company , off-site disposal locations used by the company , and property owned by third parties that is near such sites , could result in future costs to the company and such amounts could be material . expenditures for compliance with environmental control provisions and regulations during 2019 , 2018 and 2017 were not material . see the “ special note regarding forward looking statements ” at the front of this annual report on form 10-k and part i , item 1a “ risk factors ” in this annual report on form 10-k for the year ended december 31 , 2019 for a discussion of risks and uncertainties that could impact the company 's financial performance and results of operations . market risks in the ordinary course of business , the company is exposed to various market risks . the company operates in an environment where competition varies from moderate to strong . the company believes it currently provides the leading technology in water meters and radio systems for water utilities . a number of the company 's competitors in certain markets have greater financial resources . competitors also include alliance partners that sell products that do or may compete with our products . as the global water metering market begins to shift to adopt static metering technology , the number of competitors may increase . we believe new static metering market entrants lack brand recognition and product breadth and do not have the appropriate utility sales channels to meaningfully compete in the north american market . in addition , the market 's level of acceptance of the company 's newer product offerings , including the beacon ama system , may have a significant effect on the company 's results of operations . as a result of significant research and development activities , the company enjoys favorable patent positions for several of its products . the company 's ability to generate operating income and to increase profitability depends somewhat on the general conditions of the united states and foreign economies , including to some extent such things as the length and severity of global economic downturns ; the timing and size of governmental programs such as stimulus fund programs , as well as the impact of government budget cuts or partial shutdowns of governmental operations ; international or civil conflicts that affect international trade ; the ability of municipal water utility customers to authorize and finance purchases of the company 's products ; the company 's ability to obtain financing ; housing starts in the united states ; and overall industrial activity . in addition , changes in governmental laws and regulations , particularly laws dealing with the content or handling of materials , customs or trade practices , may impact the results of operations . these factors are largely beyond the company 's control and depend on the economic condition and regulatory environment of the geographic region of the company 's operations . the company relies on single suppliers for certain castings and components in several of its product lines . although alternate sources of supply exist for these items , the loss of certain suppliers could temporarily disrupt operations in the short term . the company attempts to mitigate these risks by working closely with key suppliers , purchasing minimal amounts from alternative suppliers and by purchasing business interruption insurance where appropriate . raw materials used in the manufacture of the company 's products include purchased castings made of metal or alloys ( such as brass , which uses copper as its main component , aluminum , stainless steel and cast iron ) , plastic resins , glass , microprocessors and other electronic subassemblies , and components . the company does not hold significant amounts of precious metals . the price and availability of raw materials is influenced by economic and industry conditions , including supply and demand factors that are difficult to anticipate and can not be controlled by the company . commodity risk is managed by keeping abreast of economic conditions and locking in purchase prices for quantities that correspond to the company 's forecasted usage . 21 the company 's foreign currency risk relates to the sales of products to foreign customers and purchases of material from foreign vendors . the company uses

liquidity and capital resources the main sources of liquidity for the company are cash from operations and borrowing capacity . in addition , depending on market conditions , the company may access the capital markets to strengthen its capital position and to provide additional liquidity for general corporate purposes . primary working capital we use primary working capital ( pwc ) as a percentage of sales as a key metric for working capital efficiency . we define this metric as the sum of receivables and inventories less payables , divided by annual net sales . the following table shows the components of our pwc ( in millions ) : replace_table_token_3_th overall pwc decreased $ 12.8 million as the company undertook several working capital improvement actions during the year . receivables at december 31 , 2019 were $ 61.4 million compared to $ 66.3 million at the end of 2018. the decrease was due to robust collection efforts and active monitoring processes instituted during the year . the company believes its receivables balance is fully collectible . inventories at december 31 , 2019 were $ 81.9 million , a modest increase from $ 80.8 million at december 31 , 2018 , primarily to support the backlog of orders and new product launches . payables at december 31 , 2019 were $ 31.5 million , up from $ 22.5 million at the end of 2018 due to the negotiation of advantageous payment terms with suppliers . cash provided by operations cash provided by operations in 2019 was $ 80.7 million compared to $ 60.4 million in 2018. the increase from 2018 was driven primarily by improved working capital management as well as higher operating earnings ( excluding the non-cash pension termination settlement charges ) . operating cash flow was more than adequate to fund capital expenditures of $ 7.5 million along with dividends of $ 18.6 million and $ 5.2 million in share repurchases to offset equity compensation dilution .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 main sources of liquidity for the company are cash from operations and borrowing capacity . in addition , depending on market conditions , the company may access the capital markets to strengthen its capital position and to provide additional liquidity for general corporate purposes . primary working capital we use primary working capital ( pwc ) as a percentage of sales as a key metric for working capital efficiency . we define this metric as the sum of receivables and inventories less payables , divided by annual net sales . the following table shows the components of our pwc ( in millions ) : replace_table_token_3_th overall pwc decreased $ 12.8 million as the company undertook several working capital improvement actions during the year . receivables at december 31 , 2019 were $ 61.4 million compared to $ 66.3 million at the end of 2018. the decrease was due to robust collection efforts and active monitoring processes instituted during the year . the company believes its receivables balance is fully collectible . inventories at december 31 , 2019 were $ 81.9 million , a modest increase from $ 80.8 million at december 31 , 2018 , primarily to support the backlog of orders and new product launches . payables at december 31 , 2019 were $ 31.5 million , up from $ 22.5 million at the end of 2018 due to the negotiation of advantageous payment terms with suppliers . cash provided by operations cash provided by operations in 2019 was $ 80.7 million compared to $ 60.4 million in 2018. the increase from 2018 was driven primarily by improved working capital management as well as higher operating earnings ( excluding the non-cash pension termination settlement charges ) . operating cash flow was more than adequate to fund capital expenditures of $ 7.5 million along with dividends of $ 18.6 million and $ 5.2 million in share repurchases to offset equity compensation dilution . ``` Suspicious Activity Report : providing ultrasonic water meter technology , combined with advanced radio technology , provides the company with the opportunity to sell into other geographical markets , for example the middle east and europe . the flow instrumentation product line includes meters and valves sold worldwide to measure and control fluids going through a pipe or pipeline including water , air , steam , oil , and other liquids and gases . these products are used in a variety of industries and applications , with the company 's primary market focus being water/wastewater ; heating , ventilating and air conditioning ( hvac ) ; oil and gas , and chemical and petrochemical . flow instrumentation products are generally sold to original equipment manufacturers as the primary flow measurement device within a product or system , as well as through manufacturers ' representatives . municipal water meters ( both residential and commercial ) are generally classified as either manually read meters or remotely read meters via radio technology . a manually read meter consists of a water meter and a register that provides a visual totalized meter reading . meters equipped with radio technology ( endpoints ) receive flow measurement data from battery-powered encoder registers attached to the water meter , which is encrypted and transmitted via radio frequency to a receiver that collects and formats the data appropriately for water utility usage and billing systems . these remotely read systems are classified as either automatic meter reading ( amr ) systems , where a vehicle equipped for meter reading purposes , including a radio receiver , computer and reading software , collects the data from utilities ' meters ; or advanced metering infrastructure ( ami ) systems , where data is gathered utilizing a network ( either fixed or cellular ) of data collectors or gateway receivers that are able to receive radio data transmission from the utilities ' meters . ami systems eliminate the need for utility personnel to drive through service territories to collect data from the meters . these systems provide the utilities with more frequent and diverse data from their meters at specified intervals . the orion branded family of radio endpoints provides water utilities with a range of industry-leading options for meter reading . these include orion migratable ( me ) for amr meter reading , orion ( se ) for traditional fixed network applications , and orion cellular for an infrastructure-free meter reading solution . orion migratable makes the migration to fixed network easier for utilities that prefer to start with mobile reading and later adopt fixed network communications , allowing utilities to choose a solution for their current needs and be positioned for their future operational changes . orion cellular eliminates the need for utility-owned fixed network infrastructure , allows for gradual or full deployment , and decreases ongoing maintenance . critical to the water metering ecosystem is information and analytics . the company 's beacon advanced metering analytics ( ama ) software suite improves the utilities ' visibility of their water and water usage . beacon ama is a secure , cloud-hosted software suite that includes a customizable dashboard , and has the ability to establish alerts for specific conditions . it also allows for consumer engagement tools that permit end water users ( such as homeowners ) to view and manage their water usage activity . benefits to the utility include improved customer service , increased visibility through faster leak detection , the ability to promote and quantify the effects of its water conservation efforts , and easier compliance reporting . water meter replacement and the adoption and deployment of new technology comprise the majority of water meter product sales , including radio products . to a much lesser extent , housing starts also contribute to the new product sales base . over the last decade , there has been a growing trend in the conversion from manually read water meters to meters with radio technology . this conversion rate is accelerating , with the company estimating that approximately just over 60 % of water meters installed in the united states have been converted to a radio solution technology . 15 the company 's net sales and corresponding net earnings depend on unit volume and product mix , with the company generally earning higher average selling prices and margins on meters equipped with radio technology , and higher margins on ultrasonic compared to mechanical meters . the company 's proprietary radio products ( i.e . orion ) , which comprise the majority of its radio sales , generally result in higher margins than remarketed , non-proprietary technology products . the company also sells registers and endpoints separately to customers who wish to upgrade their existing meters in the field . flow instrumentation products are used in flow measurement and control applications across a broad industrial spectrum , occasionally leveraging the same technologies used in the municipal water category . specialized communication protocols that control the entire flow measurement process and mandatory certifications drive these markets . the company provides both standard and customized flow instrumentation solutions . the industries served by the company 's flow instrumentation products face accelerating demands to contain costs , reduce product variability , and meet ever-changing safety , regulatory and sustainability requirements . to address these challenges , customers must reap more value from every component in their systems . this system-wide scrutiny has heightened the focus on flow instrumentation in industrial process , manufacturing , commercial fluid , building automation and precision engineering applications where flow measurement and control are critical . story_separator_special_tag the grant date fair value of stock options relies on assumptions including the risk-free interest rate , dividend yield , market volatility and expected option life . 20 in calculating the provision for income taxes on an interim basis , the company uses an estimate of the annual effective tax rate based upon the facts and circumstances known at each interim period . on a quarterly basis , the actual effective tax rate is adjusted as appropriate based upon the actual results compared to those forecasted at the beginning of the fiscal year . deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled . the reserve for uncertain income tax positions is a matter of judgment based on an evaluation of the individual facts and circumstances of each tax position in light of all available evidence , including historic data and current trends . a tax benefit is recognized when it is “ more likely than not ” to be sustained based solely on the technical merits of each tax position . the company evaluates and updates all o f these assumptions quarterly . goodwill impairment , if any , is determined by comparing the fair value of the reporting unit with its carrying value and is reviewed at least annually . actual results may differ from these estimates . other matters the company is subject to contingencies related to environmental laws and regulations . a future change in circumstances with respect to these specific matters or with respect to sites formerly or currently owned or operated by the company , off-site disposal locations used by the company , and property owned by third parties that is near such sites , could result in future costs to the company and such amounts could be material . expenditures for compliance with environmental control provisions and regulations during 2019 , 2018 and 2017 were not material . see the “ special note regarding forward looking statements ” at the front of this annual report on form 10-k and part i , item 1a “ risk factors ” in this annual report on form 10-k for the year ended december 31 , 2019 for a discussion of risks and uncertainties that could impact the company 's financial performance and results of operations . market risks in the ordinary course of business , the company is exposed to various market risks . the company operates in an environment where competition varies from moderate to strong . the company believes it currently provides the leading technology in water meters and radio systems for water utilities . a number of the company 's competitors in certain markets have greater financial resources . competitors also include alliance partners that sell products that do or may compete with our products . as the global water metering market begins to shift to adopt static metering technology , the number of competitors may increase . we believe new static metering market entrants lack brand recognition and product breadth and do not have the appropriate utility sales channels to meaningfully compete in the north american market . in addition , the market 's level of acceptance of the company 's newer product offerings , including the beacon ama system , may have a significant effect on the company 's results of operations . as a result of significant research and development activities , the company enjoys favorable patent positions for several of its products . the company 's ability to generate operating income and to increase profitability depends somewhat on the general conditions of the united states and foreign economies , including to some extent such things as the length and severity of global economic downturns ; the timing and size of governmental programs such as stimulus fund programs , as well as the impact of government budget cuts or partial shutdowns of governmental operations ; international or civil conflicts that affect international trade ; the ability of municipal water utility customers to authorize and finance purchases of the company 's products ; the company 's ability to obtain financing ; housing starts in the united states ; and overall industrial activity . in addition , changes in governmental laws and regulations , particularly laws dealing with the content or handling of materials , customs or trade practices , may impact the results of operations . these factors are largely beyond the company 's control and depend on the economic condition and regulatory environment of the geographic region of the company 's operations . the company relies on single suppliers for certain castings and components in several of its product lines . although alternate sources of supply exist for these items , the loss of certain suppliers could temporarily disrupt operations in the short term . the company attempts to mitigate these risks by working closely with key suppliers , purchasing minimal amounts from alternative suppliers and by purchasing business interruption insurance where appropriate . raw materials used in the manufacture of the company 's products include purchased castings made of metal or alloys ( such as brass , which uses copper as its main component , aluminum , stainless steel and cast iron ) , plastic resins , glass , microprocessors and other electronic subassemblies , and components . the company does not hold significant amounts of precious metals . the price and availability of raw materials is influenced by economic and industry conditions , including supply and demand factors that are difficult to anticipate and can not be controlled by the company . commodity risk is managed by keeping abreast of economic conditions and locking in purchase prices for quantities that correspond to the company 's forecasted usage . 21 the company 's foreign currency risk relates to the sales of products to foreign customers and purchases of material from foreign vendors . the company uses

these non-gaap measures should be viewed in addition to , and not as an alternative to , the reported financial results of the company prepared in accordance with gaap . other companies may calculate these measures differently , thereby limiting the usefulness of the measures for comparison with other companies . reconciliation of non-gaap financial information adjusted operating income and adjusted net earnings per diluted common share ( unaudited ) diluted per share amounts year-ended year-ended ( in thousands ) february 27 , 2021 february 29 , 2020 february 27 , 2021 february 29 , 2020 operating income $ 25,527 $ 87,848 $ 0.59 $ 2.32 impairment expense on goodwill and intangible assets 70,069 — 2.66 — restructuring 4,884 — 0.19 — gain on sale of building ( 19,346 ) — ( 0.74 ) — covid-19 4,988 — 0.19 — post-acquisition and acquired project matters 1,000 ( 635 ) 0.04 ( 0.02 ) cooperation agreement advisory costs — 2,776 — 0.10 income tax impact on above adjustments ( 1 ) n/a n/a ( 0.53 ) ( 0.02 ) adjusted operating income $ 87,122 $ 89,989 $ 2.40 $ 2.38 ( 1 ) income tax impact calculated using an estimated statutory tax rate of 25 % , which reflects the estimated blended statutory tax rate for the jurisdiction in which the charge or income occurred . income tax impact excludes the amount of each charge that is non-deductible in the applicable jurisdiction . in prior periods , tax impacts were calculated using an effective tax rate . all such periods were recalculated herein using the 25 % estimated statutory tax rate for consistency and comparability with the current period presentation . this change did not have a significant impact on the income tax impact or the adjusted net earnings or adjusted earnings per diluted common share amounts that had been reported for the three months or twelve months ended february 29 , 2020 . 18 results of operations net sales replace_table_token_4_th fiscal 2021 compared to fiscal 2020 net sales in fiscal 2021 decreased by 11.3 percent compared to fiscal 2020 , reflecting end market softness and covid-19 related volume declines in the architectural framing systems , architectural glass and lso segments , partially offset by increased volume in the architectural services segment , driven by execution of projects in backlog . fiscal 2020 compared to fiscal 2019 net sales in fiscal 2020 decreased by 1.1 percent compared to fiscal 2019 , driven by expected project timing-related decreases within the architectural services segment and by lower volumes at certain businesses within the architectural framing systems segment , partially offset by improved volume in the architectural glass segment . performance the relationship between various components of operations , as a percentage of net sales , is provided below . replace_table_token_5_th fiscal 2021 compared to fiscal 2020 gross margin was 22.4 percent in fiscal 2021 , a decrease of 60 basis points from fiscal 2020. this decrease was driven by the impact from lower volumes due to end market softness and covid-19 related project delays , partially offset by strong project execution in the architectural services segment . total selling , general and administrative ( sg & a ) expense for fiscal 2021 , including impairment expense on goodwill and intangible assets noted in the table above , was 20.3 percent , an increase of 360 basis points from fiscal 2020. this was driven by a $ 70.1 million impairment expense taken within the architectural framing systems segment , partially offset by a $ 19.3 million gain on the sale-leaseback of a building within the large-scale optical segment and $ 7.4 million of income related to a new markets tax credit transaction within the architectural glass segment . in addition , we received a benefit of $ 7.4 million in fiscal 2021 , as a result of a canadian wage subsidy program offered to support canadian business impacted by the covid-19 pandemic , thereby offsetting cost actions that would have been taken had this subsidy not been secured . net interest expense declined by 30 basis points compared to the prior year , due to the lower average debt balance in fiscal 2021 and a favorable one-time legal settlement impacting interest . the effective tax rate for fiscal 2021 was 31.7 percent , compared to 22.4 percent in fiscal 2020 , primarily due to nondeductible goodwill impairment in canada and the impact of the unfavorable permanent items in relation to reduced earnings in fiscal 2021. fiscal 2020 compared to fiscal 2019 gross margin was 23.0 percent in fiscal 2020 , an increase of 210 basis points from fiscal 2019. this increase was driven by project-related charges of $ 40.9 million incurred in fiscal 2019 on certain contracts acquired with the purchase of efco . the 19 increase was also driven by operating improvements in the architectural glass segment , partially offset by manufacturing difficulties in certain of the businesses in the architectural framing systems segment and reduced operating leverage in the architectural services segment , based on timing of project activity . sg & a expense for fiscal 2020 was 16.7 percent , an increase of 60 basis points from fiscal 2019. this was primarily driven by costs for outside advisors and legal fees , including cooperation agreement advisory costs , in addition to higher compensation and related costs compared to the prior year . the effective tax rate for fiscal 2020 was 22.4 percent , compared to 22.1 percent in fiscal 2019 , due to the impact of state taxes . segment analysis architectural framing systems replace_table_token_6_th fiscal 2021 compared to fiscal 2020. net sales decreased 16.9 percent , or $ 115.7 million , from fiscal 2020 , primarily reflecting lower order volume for short lead-time products and market-related project delays . story_separator_special_tag we evaluated goodwill on a qualitative basis prior to and subsequent to this change and concluded that no adjustment to the carrying value of goodwill was necessary as a result of this change . for our fiscal 2021 annual impairment test , we elected to bypass the qualitative assessment process and to proceed directly to comparing the fair value of each of our reporting units to carrying value , including goodwill . if fair value exceeds the carrying value , goodwill impairment is not indicated . if the carrying amount of a reporting unit is higher than its estimated fair value , the excess is recognized as an impairment expense . we estimate the fair value of a reporting unit using both the income approach and the market approach . the income approach uses a discounted cash flow methodology that involves significant judgment and projections of future performance . assumptions about future revenues and future operating expenses , capital expenditures and changes in working capital are based on the annual operating plan and other business plans for each reporting unit . these plans take into consideration numerous factors , including historical experience , current and future operational plans , anticipated future economic conditions and growth expectations for the industries and end markets in which we participate . these projections are discounted using a weighted-average cost of capital , which considers the risk inherent in our projections of future cash flows . we determine the weighted-average cost of capital for this analysis by weighting the required returns on interest bearing debt and common equity capital in proportion to their estimated percentages in an expected capital structure , using published data where possible . we used discount rates that are commensurate with the risks and uncertainties inherent in the respective businesses and in the internally developed forecasts . the market approach uses a multiple of earnings and revenue based on guidelines for publicly traded companies . based on these analyses , estimated fair value exceeded carrying value at six of our eight reporting units . however , driven by a decline in market conditions , partially due to covid-19 and the ongoing uncertainty related to how some of our end markets will perform in a post-covid environment , at two reporting units within the architectural framing systems segment , efco and sotawall , carrying value was in excess of the concluded fair value . for these reporting units , we utilized a weighted-average cost of capital of 12.1 percent in determining the discounted cash flows and a long-term growth rate of 3.0 percent . as a result , as of february 27 , 2021 , we incurred goodwill impairment expense of $ 46.7 million and $ 17.1 million in our efco and sotawall reporting units , respectively . the discounted cash flow projections used in these analyses are dependent upon achieving forecasted levels of revenue and profitability . if revenue or profitability were to fall below forecasted levels , or if market conditions were to decline in a material or sustained manner , further impairment could be indicated at these or our other reporting units and we could incur an additional non-cash impairment expense that would negatively impact our net earnings . indefinite-lived intangible assets we have intangible assets for certain acquired trade names and trademarks which are determined to have indefinite useful lives . we evaluate the reasonableness of the useful lives and test indefinite-lived intangible assets for impairment annually at the same measurement date as goodwill , the first day of our fiscal fourth quarter , or more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired . we bypassed a qualitative assessment and performed a quantitative impairment test to compare the fair value of each indefinite-lived intangible asset with its carrying 24 value . if the carrying value of an indefinite-lived intangible asset exceeds its fair value , an impairment expense is recognized in an amount equal to that excess . if an impairment expense is recognized , the adjusted carrying amount becomes the asset 's new accounting basis . fair value is measured using the relief-from-royalty method . this method assumes the trade name or trademark has value to the extent that the owner is relieved of the obligation to pay royalties for the benefits received from the asset . this method requires estimation of future revenue from the related asset , the appropriate royalty rate , and the weighted average cost of capital . the assessment of fair value involves significant judgment and projections about future performance . in the fair value analysis , we assumed a discount rate of 12.6 percent , royalty rates ranging from 1.5 or 2.0 percent , and a long-term growth rate of 3.0 percent . based on our analysis , the fair value of each of our trade names and trademarks exceeded carrying amount , except for the efco tradename . the fair value determined for the efco tradename exceeded carrying value by $ 6.3 million and this amount was recognized as impairment expense in the fourth quarter ended february 27 , 2021. in addition , the fair value determined for the sotawall tradename did not exceed carrying value by a significant margin . if our discount rate were to increase by 100 basis points , the fair value of this tradename would fall below carrying value , which would indicate impairment . we continue to conclude that the useful lives of our indefinite-lived intangible assets is appropriate . if future revenue were to fall below forecasted levels or if market conditions were to decline in a material or sustained manner , further impairment could be indicated on this or another indefinite-lived intangible asset . reserves for disputes and claims regarding product liability , warranties and other project-related contingencies we are subject to claims associated with our products and services , principally as a result of disputes with our customers

liquidity and capital resources replace_table_token_10_th operating activities . cash provided by operating activities was $ 141.9 million in fiscal 2021 , an increase of $ 34.6 million from fiscal 2020 , primarily reflecting strong working capital management . investing activities . net cash used in investing activities was $ 2.1 million in fiscal 2021 , compared to $ 47.0 million in fiscal 2020 , due to nearly $ 20 million of increased proceeds from property sales in fiscal 2021 , related to the sale of an lso manufacturing facility in illinois in the third quarter of fiscal 2021 , and reduced capital expenditures by $ 25 million in fiscal 2021 compared to fiscal 2020. in fiscal 2020 , we sold an architectural framing manufacturing facility in toronto , and in fiscal 2019 , we sold an architectural glass manufacturing facility in utah . financing activities . cash used in financing activities was $ 107.9 million in fiscal 2021 , compared to $ 74.5 million in fiscal 2020. in fiscal 2021 , we made net repayments on debt of $ 53.1 million , paid dividends totaling $ 19.6 million and repurchased 1,177,704 shares under our authorized share repurchase program , at a total cost of $ 32.9 million . we repurchased 686,997 shares under the program in fiscal 2020 and 1,257,983 shares under the program in fiscal 2019. we have repurchased a total of 7,132,616 shares , at a total cost of $ 207.3 million , since the 2004 inception of this 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 replace_table_token_10_th operating activities . cash provided by operating activities was $ 141.9 million in fiscal 2021 , an increase of $ 34.6 million from fiscal 2020 , primarily reflecting strong working capital management . investing activities . net cash used in investing activities was $ 2.1 million in fiscal 2021 , compared to $ 47.0 million in fiscal 2020 , due to nearly $ 20 million of increased proceeds from property sales in fiscal 2021 , related to the sale of an lso manufacturing facility in illinois in the third quarter of fiscal 2021 , and reduced capital expenditures by $ 25 million in fiscal 2021 compared to fiscal 2020. in fiscal 2020 , we sold an architectural framing manufacturing facility in toronto , and in fiscal 2019 , we sold an architectural glass manufacturing facility in utah . financing activities . cash used in financing activities was $ 107.9 million in fiscal 2021 , compared to $ 74.5 million in fiscal 2020. in fiscal 2021 , we made net repayments on debt of $ 53.1 million , paid dividends totaling $ 19.6 million and repurchased 1,177,704 shares under our authorized share repurchase program , at a total cost of $ 32.9 million . we repurchased 686,997 shares under the program in fiscal 2020 and 1,257,983 shares under the program in fiscal 2019. we have repurchased a total of 7,132,616 shares , at a total cost of $ 207.3 million , since the 2004 inception of this program . ``` Suspicious Activity Report : these non-gaap measures should be viewed in addition to , and not as an alternative to , the reported financial results of the company prepared in accordance with gaap . other companies may calculate these measures differently , thereby limiting the usefulness of the measures for comparison with other companies . reconciliation of non-gaap financial information adjusted operating income and adjusted net earnings per diluted common share ( unaudited ) diluted per share amounts year-ended year-ended ( in thousands ) february 27 , 2021 february 29 , 2020 february 27 , 2021 february 29 , 2020 operating income $ 25,527 $ 87,848 $ 0.59 $ 2.32 impairment expense on goodwill and intangible assets 70,069 — 2.66 — restructuring 4,884 — 0.19 — gain on sale of building ( 19,346 ) — ( 0.74 ) — covid-19 4,988 — 0.19 — post-acquisition and acquired project matters 1,000 ( 635 ) 0.04 ( 0.02 ) cooperation agreement advisory costs — 2,776 — 0.10 income tax impact on above adjustments ( 1 ) n/a n/a ( 0.53 ) ( 0.02 ) adjusted operating income $ 87,122 $ 89,989 $ 2.40 $ 2.38 ( 1 ) income tax impact calculated using an estimated statutory tax rate of 25 % , which reflects the estimated blended statutory tax rate for the jurisdiction in which the charge or income occurred . income tax impact excludes the amount of each charge that is non-deductible in the applicable jurisdiction . in prior periods , tax impacts were calculated using an effective tax rate . all such periods were recalculated herein using the 25 % estimated statutory tax rate for consistency and comparability with the current period presentation . this change did not have a significant impact on the income tax impact or the adjusted net earnings or adjusted earnings per diluted common share amounts that had been reported for the three months or twelve months ended february 29 , 2020 . 18 results of operations net sales replace_table_token_4_th fiscal 2021 compared to fiscal 2020 net sales in fiscal 2021 decreased by 11.3 percent compared to fiscal 2020 , reflecting end market softness and covid-19 related volume declines in the architectural framing systems , architectural glass and lso segments , partially offset by increased volume in the architectural services segment , driven by execution of projects in backlog . fiscal 2020 compared to fiscal 2019 net sales in fiscal 2020 decreased by 1.1 percent compared to fiscal 2019 , driven by expected project timing-related decreases within the architectural services segment and by lower volumes at certain businesses within the architectural framing systems segment , partially offset by improved volume in the architectural glass segment . performance the relationship between various components of operations , as a percentage of net sales , is provided below . replace_table_token_5_th fiscal 2021 compared to fiscal 2020 gross margin was 22.4 percent in fiscal 2021 , a decrease of 60 basis points from fiscal 2020. this decrease was driven by the impact from lower volumes due to end market softness and covid-19 related project delays , partially offset by strong project execution in the architectural services segment . total selling , general and administrative ( sg & a ) expense for fiscal 2021 , including impairment expense on goodwill and intangible assets noted in the table above , was 20.3 percent , an increase of 360 basis points from fiscal 2020. this was driven by a $ 70.1 million impairment expense taken within the architectural framing systems segment , partially offset by a $ 19.3 million gain on the sale-leaseback of a building within the large-scale optical segment and $ 7.4 million of income related to a new markets tax credit transaction within the architectural glass segment . in addition , we received a benefit of $ 7.4 million in fiscal 2021 , as a result of a canadian wage subsidy program offered to support canadian business impacted by the covid-19 pandemic , thereby offsetting cost actions that would have been taken had this subsidy not been secured . net interest expense declined by 30 basis points compared to the prior year , due to the lower average debt balance in fiscal 2021 and a favorable one-time legal settlement impacting interest . the effective tax rate for fiscal 2021 was 31.7 percent , compared to 22.4 percent in fiscal 2020 , primarily due to nondeductible goodwill impairment in canada and the impact of the unfavorable permanent items in relation to reduced earnings in fiscal 2021. fiscal 2020 compared to fiscal 2019 gross margin was 23.0 percent in fiscal 2020 , an increase of 210 basis points from fiscal 2019. this increase was driven by project-related charges of $ 40.9 million incurred in fiscal 2019 on certain contracts acquired with the purchase of efco . the 19 increase was also driven by operating improvements in the architectural glass segment , partially offset by manufacturing difficulties in certain of the businesses in the architectural framing systems segment and reduced operating leverage in the architectural services segment , based on timing of project activity . sg & a expense for fiscal 2020 was 16.7 percent , an increase of 60 basis points from fiscal 2019. this was primarily driven by costs for outside advisors and legal fees , including cooperation agreement advisory costs , in addition to higher compensation and related costs compared to the prior year . the effective tax rate for fiscal 2020 was 22.4 percent , compared to 22.1 percent in fiscal 2019 , due to the impact of state taxes . segment analysis architectural framing systems replace_table_token_6_th fiscal 2021 compared to fiscal 2020. net sales decreased 16.9 percent , or $ 115.7 million , from fiscal 2020 , primarily reflecting lower order volume for short lead-time products and market-related project delays . story_separator_special_tag we evaluated goodwill on a qualitative basis prior to and subsequent to this change and concluded that no adjustment to the carrying value of goodwill was necessary as a result of this change . for our fiscal 2021 annual impairment test , we elected to bypass the qualitative assessment process and to proceed directly to comparing the fair value of each of our reporting units to carrying value , including goodwill . if fair value exceeds the carrying value , goodwill impairment is not indicated . if the carrying amount of a reporting unit is higher than its estimated fair value , the excess is recognized as an impairment expense . we estimate the fair value of a reporting unit using both the income approach and the market approach . the income approach uses a discounted cash flow methodology that involves significant judgment and projections of future performance . assumptions about future revenues and future operating expenses , capital expenditures and changes in working capital are based on the annual operating plan and other business plans for each reporting unit . these plans take into consideration numerous factors , including historical experience , current and future operational plans , anticipated future economic conditions and growth expectations for the industries and end markets in which we participate . these projections are discounted using a weighted-average cost of capital , which considers the risk inherent in our projections of future cash flows . we determine the weighted-average cost of capital for this analysis by weighting the required returns on interest bearing debt and common equity capital in proportion to their estimated percentages in an expected capital structure , using published data where possible . we used discount rates that are commensurate with the risks and uncertainties inherent in the respective businesses and in the internally developed forecasts . the market approach uses a multiple of earnings and revenue based on guidelines for publicly traded companies . based on these analyses , estimated fair value exceeded carrying value at six of our eight reporting units . however , driven by a decline in market conditions , partially due to covid-19 and the ongoing uncertainty related to how some of our end markets will perform in a post-covid environment , at two reporting units within the architectural framing systems segment , efco and sotawall , carrying value was in excess of the concluded fair value . for these reporting units , we utilized a weighted-average cost of capital of 12.1 percent in determining the discounted cash flows and a long-term growth rate of 3.0 percent . as a result , as of february 27 , 2021 , we incurred goodwill impairment expense of $ 46.7 million and $ 17.1 million in our efco and sotawall reporting units , respectively . the discounted cash flow projections used in these analyses are dependent upon achieving forecasted levels of revenue and profitability . if revenue or profitability were to fall below forecasted levels , or if market conditions were to decline in a material or sustained manner , further impairment could be indicated at these or our other reporting units and we could incur an additional non-cash impairment expense that would negatively impact our net earnings . indefinite-lived intangible assets we have intangible assets for certain acquired trade names and trademarks which are determined to have indefinite useful lives . we evaluate the reasonableness of the useful lives and test indefinite-lived intangible assets for impairment annually at the same measurement date as goodwill , the first day of our fiscal fourth quarter , or more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired . we bypassed a qualitative assessment and performed a quantitative impairment test to compare the fair value of each indefinite-lived intangible asset with its carrying 24 value . if the carrying value of an indefinite-lived intangible asset exceeds its fair value , an impairment expense is recognized in an amount equal to that excess . if an impairment expense is recognized , the adjusted carrying amount becomes the asset 's new accounting basis . fair value is measured using the relief-from-royalty method . this method assumes the trade name or trademark has value to the extent that the owner is relieved of the obligation to pay royalties for the benefits received from the asset . this method requires estimation of future revenue from the related asset , the appropriate royalty rate , and the weighted average cost of capital . the assessment of fair value involves significant judgment and projections about future performance . in the fair value analysis , we assumed a discount rate of 12.6 percent , royalty rates ranging from 1.5 or 2.0 percent , and a long-term growth rate of 3.0 percent . based on our analysis , the fair value of each of our trade names and trademarks exceeded carrying amount , except for the efco tradename . the fair value determined for the efco tradename exceeded carrying value by $ 6.3 million and this amount was recognized as impairment expense in the fourth quarter ended february 27 , 2021. in addition , the fair value determined for the sotawall tradename did not exceed carrying value by a significant margin . if our discount rate were to increase by 100 basis points , the fair value of this tradename would fall below carrying value , which would indicate impairment . we continue to conclude that the useful lives of our indefinite-lived intangible assets is appropriate . if future revenue were to fall below forecasted levels or if market conditions were to decline in a material or sustained manner , further impairment could be indicated on this or another indefinite-lived intangible asset . reserves for disputes and claims regarding product liability , warranties and other project-related contingencies we are subject to claims associated with our products and services , principally as a result of disputes with our customers

on february 2 , 2020 , we entered into a stock purchase agreement ( the `` purchase agreement `` ) with gpp-ii masthercell llc ( `` gpp `` and together with the company , the `` sellers `` ) , masthercell global inc. ( `` masthercell `` ) and catalent pharma solutions , inc. ( the `` buyer `` ) . pursuant to the terms and conditions of the purchase agreement , on february 10 , 2020 , the sellers sold 100 % of the outstanding equity interests of masthercell to buyer ( the `` masthercell sale `` ) for an aggregate nominal purchase price of $ 315 million , subject to customary adjustments . after accounting for gpp 's liquidation preference and equity stake in masthercell as well as sfpi - fpim 's interest in masthercell s.a. , distributions to masthercell option holders and transaction costs , we received approximately $ 126.7 million . our audited financial statements and this management 's discussion and analysis of financial condition and results of operations contains the consolidated results of masthercell as of and through december 31 , 2019. our therapeutic development efforts in our poc business are focused on advancing breakthrough scientific achievements in atmps , and namely autologous therapies , which have a curative potential . we base our development on therapeutic collaborations and in-licensing with other pre-clinical and clinical-stage biopharma companies as well as direct collaboration with research and healthcare institutes . we are engaging in therapeutic collaborations and in-licensing with other academic centers and research centers in order to pursue emerging technologies of other atmps in cell and gene therapy in such areas including , but not limited to , cell-based immunotherapies , therapeutics for metabolic diseases , neurodegenerative diseases and tissue regeneration each of these customers and collaborations represents a growth opportunity and future revenue potential as we out-license these atmps through regional partners to whom we also provide regulatory , pre-clinical and training services to support their activity in order to reach patients in a point-of-care hospital setting . -44- we carry out our poc business through three wholly-owned and separate subsidiaries . this corporate structure allows us to simplify the accounting treatment , minimize taxation and optimize local grant support . the subsidiaries related to this business are orgenesis maryland inc. , in the u.s. , orgenesis belgium srl ( formerly orgenesis sprl ) , in the european union and orgenesis ltd. in israel . during the periods covered by this report , we carried out our cdmo business through our subsidiaries masthercell global ( of which we owned 62.2 % ) , atvio biotech ltd. ( `` atvio `` ) , an israeli-based cdmo , and curecell co. ltd. ( `` curecell `` ) , a korea-based cdmo ( of which we own 94.12 % ) . masthercell global 's subsidiaries , included masthercell s.a. , a belgian-based entity ( `` masthercell `` ) ( of which masthercell global owned 83.32 % ) , wholly-owned cell therapy holdings s.a. , a belgian-based entity , and masthercell u.s. , llc , a u.s.-based entity . masthercell global is a cdmo specialized in cell therapy development for advanced therapeutically products . during the periods covered by this report , we operated our poc and cdmo businesses as two separate business segments . corporate history we were incorporated in the state of nevada on june 5 , 2008 under the name business outsourcing services , inc. effective august 31 , 2011 , we completed a merger with our subsidiary , orgenesis inc. , a nevada corporation , which was incorporated solely to effect a change in its name . as a result , we changed our name from `` business outsourcing services , inc. `` to `` orgenesis inc. `` on october 11 , 2011 , we incorporated orgenesis ltd. as our wholly-owned subsidiary under the laws of israel . on february 2 , 2012 , orgenesis ltd. signed and closed a definitive agreement to license from tel hashomer - medical research , infrastructure and services ltd. ( `` thm `` ) , a private company duly incorporated under the laws of israel , patents and know-how related to the development of aip ( autologous insulin producing ) cells . on november 6 , 2014 , we entered into an agreement with the shareholders of masthercell s.a. to acquire masthercell s.a. on march 2 , 2015 , we closed on the acquisition of masthercell whereby it became a wholly-owned subsidiary of orgenesis . through masthercell , we became engaged in the cdmo business . as of december 31 , 2019 , most of our revenues were generated through masthercell . on june 28 , 2018 , we , masthercell global , great point partners , llc , a manager of private equity funds focused on growing small to medium sized heath care companies ( `` great point `` ) , and certain of great point 's affiliates , entered into a series of definitive strategic agreements intended to finance , strengthen and expand our cdmo business . in connection therewith , we , masthercell global and gpp-ii masthercell , llc , a delaware limited liability company ( `` gpp-ii `` ) and an affiliate of great point , entered into a stock purchase agreement ( the `` spa `` ) pursuant to which gpp-ii purchased 378,000 shares of newly designated series a preferred stock of masthercell global ( the `` masthercell global preferred stock `` ) , representing 37.8 % of the issued and outstanding share capital of masthercell global , for cash consideration to be paid into masthercell global of up to $ 25 million , subject to certain adjustments ( the `` consideration `` ) . at such time , we held 622,000 shares of masthercell global 's common stock , representing 62.2 % of the issued and outstanding equity share capital of masthercell global . story_separator_special_tag through this joint venture , the parties co-develop a novel cart and car-nk platform for the treatment of solid tumors . the development is at a pre-clinical stage . on november 10 , 2019 , the maryland subsidiary and broaden bioscience and technology corp , a delaware corporation ( `` broaden `` ) , entered into a joint venture agreement ( the `` broaden jva `` ) pursuant to which the parties will collaborate in the development and or marketing , clinical development and commercialization of cell therapy products and the setting up of poc processing facilities in china and the middle east . on december 20 , 2019 , we and the regents of the university of california ( `` university `` ) entered into a joint research agreement in the field of therapies and processing technologies according to an agreed upon work plan . according to the agreement , we will pay the university royalties of up to 5 % ( or up to 20 % of sub-licensing sales ) in the event of sales that includes certain types of university owned ip . change of fiscal year on october 22 , 2018 , the board of directors of the company approved a change in the company 's fiscal year end from november 30 to december 31 of each year . this change to the calendar year reporting cycle began january 1 , 2019. as a result of the change , the company is reporting a december 2018 fiscal month transition period , which is separately reported in this annual report on form 10-k for the calendar year ending december 31 , 2019. financial information for the year ended december 31 , 2018 has not been included in this form 10-k for the following reasons : ( i ) the year ended november 30 , 2018 provides a meaningful comparison for the year ended december 31 , 2019 ; ( ii ) there are no significant factors , seasonal or other , that would materially impact the comparability of information if the results for the year ended december 31 , 2018 were presented in lieu of results for the year ended november 30 , 2018 ; and ( iii ) it was not practicable or cost justified to prepare this information . results of operations comparison of the year ended december 31 , 2019 to the year ended november 30 , 2018 and for the one month ended december 31 , 2018. our financial results for the year ended december 31 , 2019 are summarized as follows in comparison to the year ended november 30 , 2018 and for the one month ended december 31,2018 : -49- replace_table_token_0_th revenues the following table shows the company 's revenues by major revenue streams . replace_table_token_1_th our revenues for the year ended december 31 , 2019 were $ 33,256 thousand , as compared to $ 18,655 thousand for the year ended november 30 , 2018 , representing an increase of 78 % . revenues for the one month ended december 31 , 2018 were $ 1,852 thousand . the increase in revenues for the year ended december 31 , 2019 compared to the corresponding period in 2018 is attributable to our poc services revenue which we recognized for the first time in 2019 , as well as an increase in the revenues provided by masthercell s.a. , resulting primarily from the extension of existing customer service contracts with biotechnology clients and from revenues generated from existing manufacturing agreements . management believes that revenue diversification by source in the cdmo segment , together with a leading position in immunotherapy and , in particular , car t-cell therapy development and manufacturing , strengthened masthercell 's resilience in the industry . backlog we define our backlog as products that we are obligated to deliver or services to be rendered based on firm commitments relating to purchase orders received from customers . as of december 31 , 2019 , masthercell s.a. had a backlog of approximately $ 19 million , consisting of services that we expect to deliver into fiscal year 2020. however , no assurance can be provided that such contracts will not be cancelled , in which case we will not be authorized to deliver and record the anticipated revenues . expenses cost of revenues -50- replace_table_token_2_th cost of revenues for the year ended december 31 , 2019 were $ 18,232 thousand , as compared to $ 10,824 thousand for the year ended november 30 , 2018 , representing an increase of 68 % . cost of revenues for the one month ended december 31 , 2018 were $ 1,221 thousand . the increase for the year ended december 31 , 2019 as compared to the corresponding period in 2018 is primarily attributed to the following : ( i ) an increase in salaries and related expenses of $ 2,418 thousand , primarily attributable to an increase of activities and operational staff . this is in line with the increase in revenue of masthercell s.a. , as well as the inclusion of salaries and related expenses of curecell which was consolidated from july 2018 . ( ii ) an increase in raw materials of $ 4,410 thousand , mainly attributed to the growth in the volume of services provided by masthercell s.a. , both from existing and new manufacturing agreements . ( iii ) an increase in depreciation and amortization expenses , net of $ 588 thousand , primarily attributable to the increase in the property , plants and equipment . cost of research and development and research and development services , net : replace_table_token_3_th the increase in research and development expenses reflects management 's determination to move its trans-differentiation technology to the next stage towards clinical trials . in the fiscal year ended december 31 , 2019 , we continued to focus on combining the in vitro research to increase insulin production and secretion with pre-clinical studies aiming to evaluate the efficacy

liquidity and capital resources replace_table_token_8_th as mentioned in note 23 ( d ) to item 8 of this annual report on form 10-k , on february 2 , 2020 , we entered into a stock purchase agreement ( the `` purchase agreement '' ) with gpp-ii masthercell llc ( `` gpp '' and together with us , the `` sellers '' ) , masthercell global inc. ( `` masthercell '' ) and catalent pharma solutions , inc. ( the `` buyer '' ) . pursuant to the terms and conditions of the purchase agreement , on february 10 , 2020 the sellers sold 100 % of the outstanding equity interests of masthercell to buyer ( the `` masthercell sale '' ) for an aggregate nominal purchase price of $ 315 million , subject to customary adjustments . after accounting for gpp 's liquidation preference and equity stake in masthercell as well as sfpi - fpim 's interest in masthercell s.a. , distributions to masthercell option holders and transaction costs , we received approximately $ 126.7 million , of which $ 7.2 million was used for the repayment of intercompany loans and payables . during the year ended december 31 , 2019 , we funded our operations through various financing activities consisting of proceeds primarily from private placements of our equity securities , debt securities and equity-linked instruments in the net amount of approximately $ 11.4 million and $ 13.2 million from gpp . in addition , we generated cash flow through revenues from our poc services and the activities of masthercell s.a , our belgian subsidiary . net cash used in operating activities for the year ended december 31 , 2019 was approximately $ 13 million , as compared to net cash used in operating activities of approximately $ 16 million and 1 million for the year ended november 30 , 2018 and for the one month ended december 31 , 2018 , respectively . we expanded our pre-clinical studies in the u.s. , israel , belgium and south korea .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources replace_table_token_8_th as mentioned in note 23 ( d ) to item 8 of this annual report on form 10-k , on february 2 , 2020 , we entered into a stock purchase agreement ( the `` purchase agreement '' ) with gpp-ii masthercell llc ( `` gpp '' and together with us , the `` sellers '' ) , masthercell global inc. ( `` masthercell '' ) and catalent pharma solutions , inc. ( the `` buyer '' ) . pursuant to the terms and conditions of the purchase agreement , on february 10 , 2020 the sellers sold 100 % of the outstanding equity interests of masthercell to buyer ( the `` masthercell sale '' ) for an aggregate nominal purchase price of $ 315 million , subject to customary adjustments . after accounting for gpp 's liquidation preference and equity stake in masthercell as well as sfpi - fpim 's interest in masthercell s.a. , distributions to masthercell option holders and transaction costs , we received approximately $ 126.7 million , of which $ 7.2 million was used for the repayment of intercompany loans and payables . during the year ended december 31 , 2019 , we funded our operations through various financing activities consisting of proceeds primarily from private placements of our equity securities , debt securities and equity-linked instruments in the net amount of approximately $ 11.4 million and $ 13.2 million from gpp . in addition , we generated cash flow through revenues from our poc services and the activities of masthercell s.a , our belgian subsidiary . net cash used in operating activities for the year ended december 31 , 2019 was approximately $ 13 million , as compared to net cash used in operating activities of approximately $ 16 million and 1 million for the year ended november 30 , 2018 and for the one month ended december 31 , 2018 , respectively . we expanded our pre-clinical studies in the u.s. , israel , belgium and south korea . ``` Suspicious Activity Report : on february 2 , 2020 , we entered into a stock purchase agreement ( the `` purchase agreement `` ) with gpp-ii masthercell llc ( `` gpp `` and together with the company , the `` sellers `` ) , masthercell global inc. ( `` masthercell `` ) and catalent pharma solutions , inc. ( the `` buyer `` ) . pursuant to the terms and conditions of the purchase agreement , on february 10 , 2020 , the sellers sold 100 % of the outstanding equity interests of masthercell to buyer ( the `` masthercell sale `` ) for an aggregate nominal purchase price of $ 315 million , subject to customary adjustments . after accounting for gpp 's liquidation preference and equity stake in masthercell as well as sfpi - fpim 's interest in masthercell s.a. , distributions to masthercell option holders and transaction costs , we received approximately $ 126.7 million . our audited financial statements and this management 's discussion and analysis of financial condition and results of operations contains the consolidated results of masthercell as of and through december 31 , 2019. our therapeutic development efforts in our poc business are focused on advancing breakthrough scientific achievements in atmps , and namely autologous therapies , which have a curative potential . we base our development on therapeutic collaborations and in-licensing with other pre-clinical and clinical-stage biopharma companies as well as direct collaboration with research and healthcare institutes . we are engaging in therapeutic collaborations and in-licensing with other academic centers and research centers in order to pursue emerging technologies of other atmps in cell and gene therapy in such areas including , but not limited to , cell-based immunotherapies , therapeutics for metabolic diseases , neurodegenerative diseases and tissue regeneration each of these customers and collaborations represents a growth opportunity and future revenue potential as we out-license these atmps through regional partners to whom we also provide regulatory , pre-clinical and training services to support their activity in order to reach patients in a point-of-care hospital setting . -44- we carry out our poc business through three wholly-owned and separate subsidiaries . this corporate structure allows us to simplify the accounting treatment , minimize taxation and optimize local grant support . the subsidiaries related to this business are orgenesis maryland inc. , in the u.s. , orgenesis belgium srl ( formerly orgenesis sprl ) , in the european union and orgenesis ltd. in israel . during the periods covered by this report , we carried out our cdmo business through our subsidiaries masthercell global ( of which we owned 62.2 % ) , atvio biotech ltd. ( `` atvio `` ) , an israeli-based cdmo , and curecell co. ltd. ( `` curecell `` ) , a korea-based cdmo ( of which we own 94.12 % ) . masthercell global 's subsidiaries , included masthercell s.a. , a belgian-based entity ( `` masthercell `` ) ( of which masthercell global owned 83.32 % ) , wholly-owned cell therapy holdings s.a. , a belgian-based entity , and masthercell u.s. , llc , a u.s.-based entity . masthercell global is a cdmo specialized in cell therapy development for advanced therapeutically products . during the periods covered by this report , we operated our poc and cdmo businesses as two separate business segments . corporate history we were incorporated in the state of nevada on june 5 , 2008 under the name business outsourcing services , inc. effective august 31 , 2011 , we completed a merger with our subsidiary , orgenesis inc. , a nevada corporation , which was incorporated solely to effect a change in its name . as a result , we changed our name from `` business outsourcing services , inc. `` to `` orgenesis inc. `` on october 11 , 2011 , we incorporated orgenesis ltd. as our wholly-owned subsidiary under the laws of israel . on february 2 , 2012 , orgenesis ltd. signed and closed a definitive agreement to license from tel hashomer - medical research , infrastructure and services ltd. ( `` thm `` ) , a private company duly incorporated under the laws of israel , patents and know-how related to the development of aip ( autologous insulin producing ) cells . on november 6 , 2014 , we entered into an agreement with the shareholders of masthercell s.a. to acquire masthercell s.a. on march 2 , 2015 , we closed on the acquisition of masthercell whereby it became a wholly-owned subsidiary of orgenesis . through masthercell , we became engaged in the cdmo business . as of december 31 , 2019 , most of our revenues were generated through masthercell . on june 28 , 2018 , we , masthercell global , great point partners , llc , a manager of private equity funds focused on growing small to medium sized heath care companies ( `` great point `` ) , and certain of great point 's affiliates , entered into a series of definitive strategic agreements intended to finance , strengthen and expand our cdmo business . in connection therewith , we , masthercell global and gpp-ii masthercell , llc , a delaware limited liability company ( `` gpp-ii `` ) and an affiliate of great point , entered into a stock purchase agreement ( the `` spa `` ) pursuant to which gpp-ii purchased 378,000 shares of newly designated series a preferred stock of masthercell global ( the `` masthercell global preferred stock `` ) , representing 37.8 % of the issued and outstanding share capital of masthercell global , for cash consideration to be paid into masthercell global of up to $ 25 million , subject to certain adjustments ( the `` consideration `` ) . at such time , we held 622,000 shares of masthercell global 's common stock , representing 62.2 % of the issued and outstanding equity share capital of masthercell global . story_separator_special_tag through this joint venture , the parties co-develop a novel cart and car-nk platform for the treatment of solid tumors . the development is at a pre-clinical stage . on november 10 , 2019 , the maryland subsidiary and broaden bioscience and technology corp , a delaware corporation ( `` broaden `` ) , entered into a joint venture agreement ( the `` broaden jva `` ) pursuant to which the parties will collaborate in the development and or marketing , clinical development and commercialization of cell therapy products and the setting up of poc processing facilities in china and the middle east . on december 20 , 2019 , we and the regents of the university of california ( `` university `` ) entered into a joint research agreement in the field of therapies and processing technologies according to an agreed upon work plan . according to the agreement , we will pay the university royalties of up to 5 % ( or up to 20 % of sub-licensing sales ) in the event of sales that includes certain types of university owned ip . change of fiscal year on october 22 , 2018 , the board of directors of the company approved a change in the company 's fiscal year end from november 30 to december 31 of each year . this change to the calendar year reporting cycle began january 1 , 2019. as a result of the change , the company is reporting a december 2018 fiscal month transition period , which is separately reported in this annual report on form 10-k for the calendar year ending december 31 , 2019. financial information for the year ended december 31 , 2018 has not been included in this form 10-k for the following reasons : ( i ) the year ended november 30 , 2018 provides a meaningful comparison for the year ended december 31 , 2019 ; ( ii ) there are no significant factors , seasonal or other , that would materially impact the comparability of information if the results for the year ended december 31 , 2018 were presented in lieu of results for the year ended november 30 , 2018 ; and ( iii ) it was not practicable or cost justified to prepare this information . results of operations comparison of the year ended december 31 , 2019 to the year ended november 30 , 2018 and for the one month ended december 31 , 2018. our financial results for the year ended december 31 , 2019 are summarized as follows in comparison to the year ended november 30 , 2018 and for the one month ended december 31,2018 : -49- replace_table_token_0_th revenues the following table shows the company 's revenues by major revenue streams . replace_table_token_1_th our revenues for the year ended december 31 , 2019 were $ 33,256 thousand , as compared to $ 18,655 thousand for the year ended november 30 , 2018 , representing an increase of 78 % . revenues for the one month ended december 31 , 2018 were $ 1,852 thousand . the increase in revenues for the year ended december 31 , 2019 compared to the corresponding period in 2018 is attributable to our poc services revenue which we recognized for the first time in 2019 , as well as an increase in the revenues provided by masthercell s.a. , resulting primarily from the extension of existing customer service contracts with biotechnology clients and from revenues generated from existing manufacturing agreements . management believes that revenue diversification by source in the cdmo segment , together with a leading position in immunotherapy and , in particular , car t-cell therapy development and manufacturing , strengthened masthercell 's resilience in the industry . backlog we define our backlog as products that we are obligated to deliver or services to be rendered based on firm commitments relating to purchase orders received from customers . as of december 31 , 2019 , masthercell s.a. had a backlog of approximately $ 19 million , consisting of services that we expect to deliver into fiscal year 2020. however , no assurance can be provided that such contracts will not be cancelled , in which case we will not be authorized to deliver and record the anticipated revenues . expenses cost of revenues -50- replace_table_token_2_th cost of revenues for the year ended december 31 , 2019 were $ 18,232 thousand , as compared to $ 10,824 thousand for the year ended november 30 , 2018 , representing an increase of 68 % . cost of revenues for the one month ended december 31 , 2018 were $ 1,221 thousand . the increase for the year ended december 31 , 2019 as compared to the corresponding period in 2018 is primarily attributed to the following : ( i ) an increase in salaries and related expenses of $ 2,418 thousand , primarily attributable to an increase of activities and operational staff . this is in line with the increase in revenue of masthercell s.a. , as well as the inclusion of salaries and related expenses of curecell which was consolidated from july 2018 . ( ii ) an increase in raw materials of $ 4,410 thousand , mainly attributed to the growth in the volume of services provided by masthercell s.a. , both from existing and new manufacturing agreements . ( iii ) an increase in depreciation and amortization expenses , net of $ 588 thousand , primarily attributable to the increase in the property , plants and equipment . cost of research and development and research and development services , net : replace_table_token_3_th the increase in research and development expenses reflects management 's determination to move its trans-differentiation technology to the next stage towards clinical trials . in the fiscal year ended december 31 , 2019 , we continued to focus on combining the in vitro research to increase insulin production and secretion with pre-clinical studies aiming to evaluate the efficacy

this trial is expected to commence after the ind has been cleared by the fda , which we currently anticipate being in 2020. our second drug candidate , bp1002 , targets the protein bcl-2 , which is responsible for driving cell survival in up to 60 % of all cancers . on november 21 , 2019 , we announced that the fda cleared an ind application for bp1002 . an initial phase 1 clinical trial will evaluate the ability of bp1002 to treat refractory/relapsed lymphoma and cll patients . the phase 1 clinical trial is expected to be conducted at several leading cancer centers , including md anderson and the georgia cancer center . our third drug candidate , bp1003 , targets the stat3 protein and is currently in ind enabling studies as a potential treatment of pancreatic cancer , nsclc and aml . preclinical models have shown bp1003 to inhibit cell viability and stat3 protein expression in nsclc and aml cell lines . further , bp1003 successfully penetrated pancreatic tumors and significantly enhanced the efficacy of gemcitabine , a treatment for patients with advanced pancreatic cancer , in a pancreatic cancer patient derived tumor model . our lead indication for bp1003 is pancreatic cancer due to the severity of this disease and the lack of effective , life-extending treatments . we expect to complete several ind enabling studies of bp1003 in 2020. if those studies are successful , we expect that we would file an ind in late 2020 for the first-in-humans phase 1 study of bp1003 in patients with refractory/metastatic solid tumors , including pancreatic , nsclc and colorectal cancers . our dnabilize® technology-based products are available for out-licensing or partnering . we intend to apply our drug delivery technology template to new disease-causing protein targets as a means to develop new nanoparticle antisense rnai drug candidates . we have a new product identification template in place to define a process of scientific , preclinical , commercial and intellectual property evaluation of potential new drug candidates for inclusion into our drug product development pipeline . as we expand , we will look at indications where a systemic delivery is needed and antisense rnai nanoparticles can be used to slow , reverse or cure a disease , either alone or in combination with another drug . on september 25 , 2019 , we announced that the uspto issued a patent for claims related to dnabilize® , including its use in the treatment of cancers , autoimmune diseases and infectious diseases . we have certain intellectual property as the basis for our current drug products in clinical development , prexigebersen , bp1002 and bp1003 . we are developing rnai antisense nanoparticle drug candidates based on our own patented technology to treat cancer and autoimmune disorders where targeting a single protein may be advantageous and result in reduced patient adverse effects as compared to small molecule inhibitors with off-target and non-specific effects . we have composition of matter and method of use intellectual property for the design and manufacture of antisense rnai nanoparticle drug products . as of december 31 , 2019 , we had an accumulated deficit of $ 56.3 million . our net loss was $ 8.6 million for each of the years ended december 31 , 2019 and 2018. we expect to continue to incur significant operating losses and we anticipate that our losses may increase substantially as we expand our drug development programs and commercialization efforts . to achieve profitability , we must enter into license or development agreements with third parties , or successfully develop and obtain regulatory approval for one or more of our drug candidates and effectively commercialize any drug candidates we develop . in addition , if we obtain regulatory approval of one or more of our drug candidates , we expect to incur significant commercialization expenses related to product sales , marketing , manufacturing and distribution . even if we succeed in developing and commercializing one or more of our drug candidates , we may not be able to generate sufficient revenue and we may never be able to achieve or sustain profitability . we expect to finance our foreseeable cash requirements through cash on hand , cash from operations , debt financings and public or private equity offerings . we may seek to access the public or private equity markets whenever conditions are favorable ; however , there can be no assurance that we will be able to raise additional capital when needed or on terms that are favorable to us , if at all . additionally , we may seek collaborations and license arrangements for our drug candidates . we currently have no lines of credit or other arranged access to debt financing . 50 financial operations overview revenue we have not generated significant revenues to date . our ability to generate revenues from our drug candidates , which we do not expect will occur for many years , if ever , will depend heavily on the successful development and eventual commercialization of our drug candidates . in the future , we may generate revenue from a combination of product sales , third-party grants , service agreements , strategic alliances and licensing arrangements . we expect that any revenue we generate will fluctuate due to the timing and amount of services performed , milestones achieved , license fees earned and payments received upon the eventual sales of our drug candidates , in the event any are successfully commercialized . if we fail to complete the development of any of our drug candidates or obtain regulatory approval for them , our ability to generate future revenue will be adversely affected . research and development expenses research and development expenses consist of costs associated with our research activities , including the development of our drug candidates . story_separator_special_tag such additional capital may not be available when needed or on terms favorable to us . in addition , we may seek additional capital due to favorable market conditions or strategic considerations , even if we believe we have sufficient funds for our current and future operating plan . there can be no assurance that we will be able to continue to raise additional capital through the sale of our securities in the future . our future capital requirements may change and will depend on numerous factors , which are discussed in detail in “ item 1a . risk factors ” of this annual report on form 10-k. off-balance sheet arrangements as of december 31 , 2019 , we did not have any material off-balance sheet arrangements . critical accounting policies our management 's discussion and analysis of our financial condition and results of operations are based on our financial statements , which have been prepared in conformity with gaap in the u.s. the preparation of such financial statements has required our management to make assumptions , estimates and judgments that affect the amounts reported in the financial statements , including the notes thereto , and related disclosures of commitments and contingencies , if any . we consider our critical accounting policies to be those that require the more significant judgments and estimates in the preparation of financial statements , including the following : principles of consolidation — the consolidated financial statements include the accounts of bio-path holdings , inc. , and its wholly-owned subsidiary bio-path , inc. all intercompany accounts and transactions have been eliminated in consolidation . concentration of credit risk — financial instruments that potentially subject us to a significant concentration of credit risk consist of cash . the company maintains its cash balances with one major commercial bank , jpmorgan chase bank . the balances are insured by the federal deposit insurance corporation ( the “ fdic ” ) up to $ 250,000. as a result , as of december 31 , 2019 , approximately $ 20.2 million of our cash balance was not covered by the fdic . as of december 31 , 2018 , we had approximately $ 1.0 million in cash on-hand , of which approximately $ 0.8 million was not covered by the fdic . to date , the company has not incurred any losses on its cash balances . long-lived assets — our long-lived assets consist of furniture , fixtures and equipment , leasehold improvements and right-of-use operating assets . long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable . recoverability of the asset is measured by a comparison of the asset 's carrying amount to the estimated undiscounted future cash flows expected to be generated by the asset . if the carrying amount of an asset exceeds its estimated undiscounted future cash flows , an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset . intangible assets/impairment of long-lived assets — long-lived assets are reviewed for events of changes in circumstances which indicate that their carrying value may not be recoverable . the license agreement with md anderson was mutually terminated on december 18 , 2018 , and the company impaired the remaining balance of $ 0.6 million on the license as of december 31 , 2018. research and development costs — costs and expenses that can be clearly identified as research and development are charged to expense as incurred . advance payments , including nonrefundable amounts , for goods or services that will be used or rendered for future research and development activities are deferred and capitalized . such amounts will be recognized as an expense as the related goods are delivered or the related services are performed . if the goods will not be delivered , or services will not be rendered , then the capitalized advance payment is charged to expense . 55 the company estimates its clinical trial expense accrual each period based on a cost per patient calculation which is derived from estimated start-up costs , clinical trial costs based on the number of patients and length of treatment and clinical study report costs . these services are performed by the company 's third-party clinical research organizations , laboratories and clinical investigative sites . the expense accrual is recorded in research and development expense each period . amounts that have been prepaid in advance of work performed are recorded in other current assets . for each of the years ended december 31 , 2019 and 2018 , we had $ 4.6 million of costs classified as research and development expense . stock-based compensation — the company has accounted for stock-based compensation under the provisions of gaap . the provisions require us to record an expense associated with the fair value of stock-based compensation . we currently use the black-scholes option valuation model to calculate stock-based compensation at the date of grant . option pricing models require the input of highly subjective assumptions , including the expected price volatility . changes in these assumptions can materially affect the fair value estimate . recent accounting pronouncements — from time to time , new accounting pronouncements are issued by the financial accounting standards board ( “ fasb ” ) that are adopted by the company as of the specified effective date . if not discussed , management believes that the impact of recently issued standards , which are not yet effective , will not have a material impact on the company 's consolidated financial statements upon adoption . in february 2016 , the fasb issued asu no . 2016-02 , leases . the new standard establishes a right-of-use ( “ rou ” ) model that requires a lessee to record a rou asset and a lease liability initially measured at the present value of the lease payments on the balance

cash flows for the year ended december 31 , 2019 operating activities . net cash used in operating activities for the year ended december 31 , 2019 was $ 8.4 million . net cash used in operating activities consisted primarily of the net loss for the period of $ 8.6 million , excluding non-cash stock-based compensation expense of $ 0.7 million and amortization and depreciation expenses of $ 0.2 million , an increase in current assets of $ 0.4 million and a decrease in current liabilities of $ 0.2 million . financing activities . net cash provided by financing activities for the year ended december 31 , 2019 consisted primarily of net proceeds of $ 26.7 million from the 2019 underwritten offering , the january 2019 registered direct offering and january 2019 private placement , the march 2019 registered direct offering and the november 2019 registered direct offering , each as described below , as well as net proceeds of $ 1.1 million from the exercise of warrants to purchase shares of our common stock . for the year ended december 31 , 2018 operating activities . net cash used in operating activities for the year ended december 31 , 2018 was $ 6.1 million . net cash used in operating activities consisted primarily of the net loss for the period of $ 8.6 million , excluding non-cash stock-based compensation expense of $ 0.6 million and technology license amortization and depreciation expenses of $ 0.4 million , an impairment of the technology license of $ 0.6 million , an increase in current liabilities of $ 0.5 million and a decrease in current assets of $ 0.3 million . investing activities . net cash used in investing activities for the year ended december 31 , 2018 consisted of capital expenditures totaling $ 17,000 , which were primarily related to research and development equipment purchases . financing activities . net cash provided by financing activities for the year ended december 31 , 2018 was $ 1.2 million from the 2018 registered direct offering and 2018 private placement , both as described below .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash flows for the year ended december 31 , 2019 operating activities . net cash used in operating activities for the year ended december 31 , 2019 was $ 8.4 million . net cash used in operating activities consisted primarily of the net loss for the period of $ 8.6 million , excluding non-cash stock-based compensation expense of $ 0.7 million and amortization and depreciation expenses of $ 0.2 million , an increase in current assets of $ 0.4 million and a decrease in current liabilities of $ 0.2 million . financing activities . net cash provided by financing activities for the year ended december 31 , 2019 consisted primarily of net proceeds of $ 26.7 million from the 2019 underwritten offering , the january 2019 registered direct offering and january 2019 private placement , the march 2019 registered direct offering and the november 2019 registered direct offering , each as described below , as well as net proceeds of $ 1.1 million from the exercise of warrants to purchase shares of our common stock . for the year ended december 31 , 2018 operating activities . net cash used in operating activities for the year ended december 31 , 2018 was $ 6.1 million . net cash used in operating activities consisted primarily of the net loss for the period of $ 8.6 million , excluding non-cash stock-based compensation expense of $ 0.6 million and technology license amortization and depreciation expenses of $ 0.4 million , an impairment of the technology license of $ 0.6 million , an increase in current liabilities of $ 0.5 million and a decrease in current assets of $ 0.3 million . investing activities . net cash used in investing activities for the year ended december 31 , 2018 consisted of capital expenditures totaling $ 17,000 , which were primarily related to research and development equipment purchases . financing activities . net cash provided by financing activities for the year ended december 31 , 2018 was $ 1.2 million from the 2018 registered direct offering and 2018 private placement , both as described below . ``` Suspicious Activity Report : this trial is expected to commence after the ind has been cleared by the fda , which we currently anticipate being in 2020. our second drug candidate , bp1002 , targets the protein bcl-2 , which is responsible for driving cell survival in up to 60 % of all cancers . on november 21 , 2019 , we announced that the fda cleared an ind application for bp1002 . an initial phase 1 clinical trial will evaluate the ability of bp1002 to treat refractory/relapsed lymphoma and cll patients . the phase 1 clinical trial is expected to be conducted at several leading cancer centers , including md anderson and the georgia cancer center . our third drug candidate , bp1003 , targets the stat3 protein and is currently in ind enabling studies as a potential treatment of pancreatic cancer , nsclc and aml . preclinical models have shown bp1003 to inhibit cell viability and stat3 protein expression in nsclc and aml cell lines . further , bp1003 successfully penetrated pancreatic tumors and significantly enhanced the efficacy of gemcitabine , a treatment for patients with advanced pancreatic cancer , in a pancreatic cancer patient derived tumor model . our lead indication for bp1003 is pancreatic cancer due to the severity of this disease and the lack of effective , life-extending treatments . we expect to complete several ind enabling studies of bp1003 in 2020. if those studies are successful , we expect that we would file an ind in late 2020 for the first-in-humans phase 1 study of bp1003 in patients with refractory/metastatic solid tumors , including pancreatic , nsclc and colorectal cancers . our dnabilize® technology-based products are available for out-licensing or partnering . we intend to apply our drug delivery technology template to new disease-causing protein targets as a means to develop new nanoparticle antisense rnai drug candidates . we have a new product identification template in place to define a process of scientific , preclinical , commercial and intellectual property evaluation of potential new drug candidates for inclusion into our drug product development pipeline . as we expand , we will look at indications where a systemic delivery is needed and antisense rnai nanoparticles can be used to slow , reverse or cure a disease , either alone or in combination with another drug . on september 25 , 2019 , we announced that the uspto issued a patent for claims related to dnabilize® , including its use in the treatment of cancers , autoimmune diseases and infectious diseases . we have certain intellectual property as the basis for our current drug products in clinical development , prexigebersen , bp1002 and bp1003 . we are developing rnai antisense nanoparticle drug candidates based on our own patented technology to treat cancer and autoimmune disorders where targeting a single protein may be advantageous and result in reduced patient adverse effects as compared to small molecule inhibitors with off-target and non-specific effects . we have composition of matter and method of use intellectual property for the design and manufacture of antisense rnai nanoparticle drug products . as of december 31 , 2019 , we had an accumulated deficit of $ 56.3 million . our net loss was $ 8.6 million for each of the years ended december 31 , 2019 and 2018. we expect to continue to incur significant operating losses and we anticipate that our losses may increase substantially as we expand our drug development programs and commercialization efforts . to achieve profitability , we must enter into license or development agreements with third parties , or successfully develop and obtain regulatory approval for one or more of our drug candidates and effectively commercialize any drug candidates we develop . in addition , if we obtain regulatory approval of one or more of our drug candidates , we expect to incur significant commercialization expenses related to product sales , marketing , manufacturing and distribution . even if we succeed in developing and commercializing one or more of our drug candidates , we may not be able to generate sufficient revenue and we may never be able to achieve or sustain profitability . we expect to finance our foreseeable cash requirements through cash on hand , cash from operations , debt financings and public or private equity offerings . we may seek to access the public or private equity markets whenever conditions are favorable ; however , there can be no assurance that we will be able to raise additional capital when needed or on terms that are favorable to us , if at all . additionally , we may seek collaborations and license arrangements for our drug candidates . we currently have no lines of credit or other arranged access to debt financing . 50 financial operations overview revenue we have not generated significant revenues to date . our ability to generate revenues from our drug candidates , which we do not expect will occur for many years , if ever , will depend heavily on the successful development and eventual commercialization of our drug candidates . in the future , we may generate revenue from a combination of product sales , third-party grants , service agreements , strategic alliances and licensing arrangements . we expect that any revenue we generate will fluctuate due to the timing and amount of services performed , milestones achieved , license fees earned and payments received upon the eventual sales of our drug candidates , in the event any are successfully commercialized . if we fail to complete the development of any of our drug candidates or obtain regulatory approval for them , our ability to generate future revenue will be adversely affected . research and development expenses research and development expenses consist of costs associated with our research activities , including the development of our drug candidates . story_separator_special_tag such additional capital may not be available when needed or on terms favorable to us . in addition , we may seek additional capital due to favorable market conditions or strategic considerations , even if we believe we have sufficient funds for our current and future operating plan . there can be no assurance that we will be able to continue to raise additional capital through the sale of our securities in the future . our future capital requirements may change and will depend on numerous factors , which are discussed in detail in “ item 1a . risk factors ” of this annual report on form 10-k. off-balance sheet arrangements as of december 31 , 2019 , we did not have any material off-balance sheet arrangements . critical accounting policies our management 's discussion and analysis of our financial condition and results of operations are based on our financial statements , which have been prepared in conformity with gaap in the u.s. the preparation of such financial statements has required our management to make assumptions , estimates and judgments that affect the amounts reported in the financial statements , including the notes thereto , and related disclosures of commitments and contingencies , if any . we consider our critical accounting policies to be those that require the more significant judgments and estimates in the preparation of financial statements , including the following : principles of consolidation — the consolidated financial statements include the accounts of bio-path holdings , inc. , and its wholly-owned subsidiary bio-path , inc. all intercompany accounts and transactions have been eliminated in consolidation . concentration of credit risk — financial instruments that potentially subject us to a significant concentration of credit risk consist of cash . the company maintains its cash balances with one major commercial bank , jpmorgan chase bank . the balances are insured by the federal deposit insurance corporation ( the “ fdic ” ) up to $ 250,000. as a result , as of december 31 , 2019 , approximately $ 20.2 million of our cash balance was not covered by the fdic . as of december 31 , 2018 , we had approximately $ 1.0 million in cash on-hand , of which approximately $ 0.8 million was not covered by the fdic . to date , the company has not incurred any losses on its cash balances . long-lived assets — our long-lived assets consist of furniture , fixtures and equipment , leasehold improvements and right-of-use operating assets . long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable . recoverability of the asset is measured by a comparison of the asset 's carrying amount to the estimated undiscounted future cash flows expected to be generated by the asset . if the carrying amount of an asset exceeds its estimated undiscounted future cash flows , an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset . intangible assets/impairment of long-lived assets — long-lived assets are reviewed for events of changes in circumstances which indicate that their carrying value may not be recoverable . the license agreement with md anderson was mutually terminated on december 18 , 2018 , and the company impaired the remaining balance of $ 0.6 million on the license as of december 31 , 2018. research and development costs — costs and expenses that can be clearly identified as research and development are charged to expense as incurred . advance payments , including nonrefundable amounts , for goods or services that will be used or rendered for future research and development activities are deferred and capitalized . such amounts will be recognized as an expense as the related goods are delivered or the related services are performed . if the goods will not be delivered , or services will not be rendered , then the capitalized advance payment is charged to expense . 55 the company estimates its clinical trial expense accrual each period based on a cost per patient calculation which is derived from estimated start-up costs , clinical trial costs based on the number of patients and length of treatment and clinical study report costs . these services are performed by the company 's third-party clinical research organizations , laboratories and clinical investigative sites . the expense accrual is recorded in research and development expense each period . amounts that have been prepaid in advance of work performed are recorded in other current assets . for each of the years ended december 31 , 2019 and 2018 , we had $ 4.6 million of costs classified as research and development expense . stock-based compensation — the company has accounted for stock-based compensation under the provisions of gaap . the provisions require us to record an expense associated with the fair value of stock-based compensation . we currently use the black-scholes option valuation model to calculate stock-based compensation at the date of grant . option pricing models require the input of highly subjective assumptions , including the expected price volatility . changes in these assumptions can materially affect the fair value estimate . recent accounting pronouncements — from time to time , new accounting pronouncements are issued by the financial accounting standards board ( “ fasb ” ) that are adopted by the company as of the specified effective date . if not discussed , management believes that the impact of recently issued standards , which are not yet effective , will not have a material impact on the company 's consolidated financial statements upon adoption . in february 2016 , the fasb issued asu no . 2016-02 , leases . the new standard establishes a right-of-use ( “ rou ” ) model that requires a lessee to record a rou asset and a lease liability initially measured at the present value of the lease payments on the balance

on october 28 , 2010 , we completed the acquisition of day , a provider of web experience management ( “ wem ” ) , digital asset management and social collaboration solutions based in basel , switzerland and boston , massachusetts for approximately $ 248.3 million . we have included the financial results of day in our consolidated results of operations beginning on the acquisition date , however , the impact of this acquisition was not material to our consolidated balance sheets and results of operations in fiscal 2010. following the closing , we integrated day as a product line within our digital marketing segment for financial reporting purposes . see note 2 of our notes to consolidated financial statements for further information regarding these acquisitions . critical accounting policies and estimates in preparing our consolidated financial statements in accordance with gaap and pursuant to the rules and regulations of the sec , we make assumptions , judgments and estimates that affect the reported amounts of assets , liabilities , revenue and expenses , and related disclosures of contingent assets and liabilities . we base our assumptions , judgments and estimates on historical experience and various other factors that we believe to be reasonable under the circumstances . actual results could differ materially from these estimates under different assumptions or conditions . on a regular basis , we evaluate our assumptions , judgments and estimates . we also discuss our critical accounting policies and estimates with the audit committee of the board of directors . 55 we believe that the assumptions , judgments and estimates involved in the accounting for revenue recognition , stock-based compensation , business combinations , goodwill impairment and income taxes have the greatest potential impact on our consolidated financial statements . these areas are key components of our results of operations and are based on complex rules requiring us to make judgments and estimates , so we consider these to be our critical accounting policies . historically , our assumptions , judgments and estimates relative to our critical accounting policies have not differed materially from actual results . revenue recognition our revenue is derived from the licensing of perpetual and time-based software products , associated software maintenance and support plans , non-software related hosting services , consulting services , training and technical support . we recognize revenue when all four revenue recognition criteria have been met : persuasive evidence of an arrangement exists , we have delivered the product or performed the service , the fee is fixed or determinable and collection is probable . determining whether and when some of these criteria have been satisfied often involves assumptions and judgments that can have a significant impact on the timing and amount of revenue we report . we enter into multiple element revenue arrangements in which a customer may purchase a combination of software , upgrades , maintenance and support , hosting services , and consulting . for our software and software-related multiple element arrangements , we must : ( 1 ) determine whether and when each element has been delivered ; ( 2 ) determine whether undelivered products or services are essential to the functionality of the delivered products and services ; ( 3 ) determine the fair value of each undelivered element using vendor-specific objective evidence ( “ vsoe ” ) , and ( 4 ) allocate the total price among the various elements . vsoe of fair value is used to allocate a portion of the price to the undelivered elements and the residual method is used to allocate the remaining portion to the delivered elements . absent vsoe , revenue is deferred until the earlier of the point at which vsoe of fair value exists for any undelivered element or until all elements of the arrangement have been delivered . however , if the only undelivered element is maintenance and support , the entire arrangement fee is recognized ratably over the performance period . changes in assumptions or judgments or changes to the elements in a software arrangement could cause a material increase or decrease in the amount of revenue that we report in a particular period . we determine vsoe for each element based on historical stand-alone sales to third parties or from the stated renewal rate for the elements contained in the initial arrangement . in determining vsoe , we require that a substantial majority of the selling prices for a product or service fall within a reasonably narrow pricing range . we have established vsoe for our software maintenance and support services , custom software development services , con sulting services and training . for multiple element arrangement s containing our non-software services , we must : ( 1 ) determine whether and when each element has been delivered ; ( 2 ) determine fair value of each element using the selling price hierarchy of vsoe of fair value , third-party evidence ( “ tpe ” ) or best-estimated selling price ( “ besp ” ) , as applicable ; and ( 3 ) allocate the total price among the various elements based on the relative selling price method . for multiple-element arrangements that contain software and non-software elements such as our hosted offerings , we allocate revenue to software or software-related elements as a group and any non-software elements separately based on the selling price hierarchy . we determine the selling price for each deliverable using vsoe of selling price , if it exists , or tpe of selling price . if neither vsoe nor tpe of selling price exist for a deliverable , we use its besp for that deliverable . once revenue is allocated to software or software-related elements as a group , it follows historic software accounting guidance . revenue is then recognized when the basic revenue recognition criteria are met for each element . story_separator_special_tag to assist with the understanding of this transition and the related shift in revenue described above , we have introduced the use of certain performance metrics which we will use to assess the health and trajectory of our overall digital media segment . these metrics include the total number of paid , active subscribers and annualized recurring revenue ( “ arr ” ) . we define arr as the sum of : the number of paid , active subscribers , multiplied by the average subscription price paid per user per month , multiplied by twelve months ; plus , twelve months of contract value of enterprise term license agreements ( “ etlas ” ) where the revenue is ratably recognized over the life of the contract . in addition , we expect renewal rates associated with creative cloud , and potentially other subscription offerings , will become key metrics used to measure their performance . because the majority of creative cloud subscriptions have been annual and the creative cloud launched in may 2012 , we have not yet reached the first anniversary of these annual subscriptions and , therefore , we anticipate that meaningful data regarding subscription renewal rates will first become available later in fiscal year 2013. financial performance summary for fiscal 2012 we continue to derive the majority of our revenue from perpetual licenses . however , our subscription revenue , as a percentage of total revenue , has increased to 15 % in fiscal 2012 from approximately 11 % and 10 % in fiscal 2011 and fiscal 2010 , respectively , as we transition more of our business to a subscription-based model . our total revenue of $ 4.4 billion increased $ 187.4 million and $ 603.7 million , or 4 % and 11 % , from $ 4.2 billion and $ 3.8 billion in fiscal 2011 and fiscal 2010 , respectively . the increase is primarily due to the continued success of our adobe marketing cloud and creative suite family of products . cost of revenue and operating expenses of $ 3.2 billion increased by $ 106.5 million and $ 416.6 million , or 3 % and 15 % , from $ 3.1 billion and $ 2.8 billion in fiscal 2011 and 2010 , respectively . these increases are primarily due to increases in costs associated with compensation and related benefits driven by additional headcount . income before income taxes of $ 1.1 billion increased by $ 83.6 million and $ 175.6 million , or 8 % and 19 % , from $ 1.0 billion and $ 943.2 million in fiscal 2011 and 2010 , respectively . net income of $ 832.8 million remained stable compared to fiscal 2011 and increased $ 58.1 million , or 7 % , from $ 774.7 million in fiscal 2010. net cash flow from operations of $ 1.5 billion remained stable compared to fiscal 2011 and increased $ 386.6 million , or 35 % , from $ 1.1 billion in fiscal 2010 primarily due to increases in net income and deferred revenue and decreases in trade receivables from increased cash collections . 60 revenue ( dollars in millions ) replace_table_token_4_th as described in note 18 of our notes to consolidated financial statements , we have the following segments : digital media , digital marketing and print and publishing . our subscription revenue is comprised primarily of fees we charge for our subscription and hosted service offerings including our digital marketing services and creative cloud . we recognize subscription revenue ratably over the term of agreements with our customers , beginning on the commencement of the service . we expect our subscription revenue will continue to increase as a result of our investments in new saas and subscription models . we also expect this to increase the amount of recurring revenue we generate as a percent of our total revenue . of the $ 673.2 million , $ 458.6 million and $ 386.8 million in subscription revenue for fiscal years 2012 , 2011 and 2010 , respectively , approximately $ 553.2 million , $ 429.2 million and $ 375.3 million , respectively , is from our digital marketing segment , with the remaining amounts representing our digital media segment offerings . our services and support revenue is comprised of consulting , training and maintenance and support , primarily related to the licensing of our enterprise , developer and platform products and the sale of our hosted digital marketing services . our support revenue also includes technical support and developer support to partners and developer organizations related to our desktop products . our maintenance and support offerings , which entitle customers to receive product upgrades and enhancements or technical support , depending on the offering , are recognized ratably over the term of the arrangement . segments in fiscal 2012 , we categorized our products into the following segments : digital media —our digital media segment provides tools and solutions that enable individuals , small businesses and enterprises to create , publish , promote and monetize their digital content anywhere . our customers include traditional content creators , web application developers and digital media professionals , as well as their management in marketing departments and agencies , companies and publishers . digital marketing —our digital marketing segment provides solutions and services for how digital advertising and marketing are created , managed , executed , measured and optimized . our customers include digital marketers , advertisers , publishers , merchandisers , web analysts , chief marketing officers and chief revenue officers . print and publishing —our print and publishing segment addresses market opportunities ranging from the diverse publishing needs of technical and business publishing to our legacy type and oem printing businesses . segment information ( dollars in millions ) replace_table_token_5_th 61 fiscal 2012 revenue compared to fiscal 2011 revenue digital media revenue from digital media remained relatively stable during fiscal 2012 as compared to fiscal 2011 , due to solid demand for

cash flows from financing activities for fiscal 2012 and fiscal 2011 , net cash used for financing activities of $ 234.7 million and $ 550.4 million , respectively , was primarily due to treasury stock repurchases offset in part by proceeds from our treasury stock issuances . see the section titled “ stock repurchase program ” discussed below . for fiscal 2010 , the primary cash flows from financing activities represented the issuance of $ 600.0 million of 3.25 % senior notes due february 1 , 2015 and $ 900.0 million of 4.75 % senior notes due february 1 , 2020 . on february 1 , 2010 , we paid the outstanding balance on our then existing credit facility with a portion of the funds from our notes . other uses of cash during fiscal 2010 were for treasury stock repurchases offset in part by proceeds from our treasury stock issuances . we expect to continue our investing activities , including short-term and long-term investments , venture capital , facilities expansion and purchases of computer systems for research and development , sales and marketing , product support and administrative staff . furthermore , cash reserves may be used to repurchase stock under our stock repurchase program and to strategically acquire companies , products or technologies that are complementary to our business . restructuring during the past several years , we have initiated various restructuring plans .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 for fiscal 2012 and fiscal 2011 , net cash used for financing activities of $ 234.7 million and $ 550.4 million , respectively , was primarily due to treasury stock repurchases offset in part by proceeds from our treasury stock issuances . see the section titled “ stock repurchase program ” discussed below . for fiscal 2010 , the primary cash flows from financing activities represented the issuance of $ 600.0 million of 3.25 % senior notes due february 1 , 2015 and $ 900.0 million of 4.75 % senior notes due february 1 , 2020 . on february 1 , 2010 , we paid the outstanding balance on our then existing credit facility with a portion of the funds from our notes . other uses of cash during fiscal 2010 were for treasury stock repurchases offset in part by proceeds from our treasury stock issuances . we expect to continue our investing activities , including short-term and long-term investments , venture capital , facilities expansion and purchases of computer systems for research and development , sales and marketing , product support and administrative staff . furthermore , cash reserves may be used to repurchase stock under our stock repurchase program and to strategically acquire companies , products or technologies that are complementary to our business . restructuring during the past several years , we have initiated various restructuring plans . ``` Suspicious Activity Report : on october 28 , 2010 , we completed the acquisition of day , a provider of web experience management ( “ wem ” ) , digital asset management and social collaboration solutions based in basel , switzerland and boston , massachusetts for approximately $ 248.3 million . we have included the financial results of day in our consolidated results of operations beginning on the acquisition date , however , the impact of this acquisition was not material to our consolidated balance sheets and results of operations in fiscal 2010. following the closing , we integrated day as a product line within our digital marketing segment for financial reporting purposes . see note 2 of our notes to consolidated financial statements for further information regarding these acquisitions . critical accounting policies and estimates in preparing our consolidated financial statements in accordance with gaap and pursuant to the rules and regulations of the sec , we make assumptions , judgments and estimates that affect the reported amounts of assets , liabilities , revenue and expenses , and related disclosures of contingent assets and liabilities . we base our assumptions , judgments and estimates on historical experience and various other factors that we believe to be reasonable under the circumstances . actual results could differ materially from these estimates under different assumptions or conditions . on a regular basis , we evaluate our assumptions , judgments and estimates . we also discuss our critical accounting policies and estimates with the audit committee of the board of directors . 55 we believe that the assumptions , judgments and estimates involved in the accounting for revenue recognition , stock-based compensation , business combinations , goodwill impairment and income taxes have the greatest potential impact on our consolidated financial statements . these areas are key components of our results of operations and are based on complex rules requiring us to make judgments and estimates , so we consider these to be our critical accounting policies . historically , our assumptions , judgments and estimates relative to our critical accounting policies have not differed materially from actual results . revenue recognition our revenue is derived from the licensing of perpetual and time-based software products , associated software maintenance and support plans , non-software related hosting services , consulting services , training and technical support . we recognize revenue when all four revenue recognition criteria have been met : persuasive evidence of an arrangement exists , we have delivered the product or performed the service , the fee is fixed or determinable and collection is probable . determining whether and when some of these criteria have been satisfied often involves assumptions and judgments that can have a significant impact on the timing and amount of revenue we report . we enter into multiple element revenue arrangements in which a customer may purchase a combination of software , upgrades , maintenance and support , hosting services , and consulting . for our software and software-related multiple element arrangements , we must : ( 1 ) determine whether and when each element has been delivered ; ( 2 ) determine whether undelivered products or services are essential to the functionality of the delivered products and services ; ( 3 ) determine the fair value of each undelivered element using vendor-specific objective evidence ( “ vsoe ” ) , and ( 4 ) allocate the total price among the various elements . vsoe of fair value is used to allocate a portion of the price to the undelivered elements and the residual method is used to allocate the remaining portion to the delivered elements . absent vsoe , revenue is deferred until the earlier of the point at which vsoe of fair value exists for any undelivered element or until all elements of the arrangement have been delivered . however , if the only undelivered element is maintenance and support , the entire arrangement fee is recognized ratably over the performance period . changes in assumptions or judgments or changes to the elements in a software arrangement could cause a material increase or decrease in the amount of revenue that we report in a particular period . we determine vsoe for each element based on historical stand-alone sales to third parties or from the stated renewal rate for the elements contained in the initial arrangement . in determining vsoe , we require that a substantial majority of the selling prices for a product or service fall within a reasonably narrow pricing range . we have established vsoe for our software maintenance and support services , custom software development services , con sulting services and training . for multiple element arrangement s containing our non-software services , we must : ( 1 ) determine whether and when each element has been delivered ; ( 2 ) determine fair value of each element using the selling price hierarchy of vsoe of fair value , third-party evidence ( “ tpe ” ) or best-estimated selling price ( “ besp ” ) , as applicable ; and ( 3 ) allocate the total price among the various elements based on the relative selling price method . for multiple-element arrangements that contain software and non-software elements such as our hosted offerings , we allocate revenue to software or software-related elements as a group and any non-software elements separately based on the selling price hierarchy . we determine the selling price for each deliverable using vsoe of selling price , if it exists , or tpe of selling price . if neither vsoe nor tpe of selling price exist for a deliverable , we use its besp for that deliverable . once revenue is allocated to software or software-related elements as a group , it follows historic software accounting guidance . revenue is then recognized when the basic revenue recognition criteria are met for each element . story_separator_special_tag to assist with the understanding of this transition and the related shift in revenue described above , we have introduced the use of certain performance metrics which we will use to assess the health and trajectory of our overall digital media segment . these metrics include the total number of paid , active subscribers and annualized recurring revenue ( “ arr ” ) . we define arr as the sum of : the number of paid , active subscribers , multiplied by the average subscription price paid per user per month , multiplied by twelve months ; plus , twelve months of contract value of enterprise term license agreements ( “ etlas ” ) where the revenue is ratably recognized over the life of the contract . in addition , we expect renewal rates associated with creative cloud , and potentially other subscription offerings , will become key metrics used to measure their performance . because the majority of creative cloud subscriptions have been annual and the creative cloud launched in may 2012 , we have not yet reached the first anniversary of these annual subscriptions and , therefore , we anticipate that meaningful data regarding subscription renewal rates will first become available later in fiscal year 2013. financial performance summary for fiscal 2012 we continue to derive the majority of our revenue from perpetual licenses . however , our subscription revenue , as a percentage of total revenue , has increased to 15 % in fiscal 2012 from approximately 11 % and 10 % in fiscal 2011 and fiscal 2010 , respectively , as we transition more of our business to a subscription-based model . our total revenue of $ 4.4 billion increased $ 187.4 million and $ 603.7 million , or 4 % and 11 % , from $ 4.2 billion and $ 3.8 billion in fiscal 2011 and fiscal 2010 , respectively . the increase is primarily due to the continued success of our adobe marketing cloud and creative suite family of products . cost of revenue and operating expenses of $ 3.2 billion increased by $ 106.5 million and $ 416.6 million , or 3 % and 15 % , from $ 3.1 billion and $ 2.8 billion in fiscal 2011 and 2010 , respectively . these increases are primarily due to increases in costs associated with compensation and related benefits driven by additional headcount . income before income taxes of $ 1.1 billion increased by $ 83.6 million and $ 175.6 million , or 8 % and 19 % , from $ 1.0 billion and $ 943.2 million in fiscal 2011 and 2010 , respectively . net income of $ 832.8 million remained stable compared to fiscal 2011 and increased $ 58.1 million , or 7 % , from $ 774.7 million in fiscal 2010. net cash flow from operations of $ 1.5 billion remained stable compared to fiscal 2011 and increased $ 386.6 million , or 35 % , from $ 1.1 billion in fiscal 2010 primarily due to increases in net income and deferred revenue and decreases in trade receivables from increased cash collections . 60 revenue ( dollars in millions ) replace_table_token_4_th as described in note 18 of our notes to consolidated financial statements , we have the following segments : digital media , digital marketing and print and publishing . our subscription revenue is comprised primarily of fees we charge for our subscription and hosted service offerings including our digital marketing services and creative cloud . we recognize subscription revenue ratably over the term of agreements with our customers , beginning on the commencement of the service . we expect our subscription revenue will continue to increase as a result of our investments in new saas and subscription models . we also expect this to increase the amount of recurring revenue we generate as a percent of our total revenue . of the $ 673.2 million , $ 458.6 million and $ 386.8 million in subscription revenue for fiscal years 2012 , 2011 and 2010 , respectively , approximately $ 553.2 million , $ 429.2 million and $ 375.3 million , respectively , is from our digital marketing segment , with the remaining amounts representing our digital media segment offerings . our services and support revenue is comprised of consulting , training and maintenance and support , primarily related to the licensing of our enterprise , developer and platform products and the sale of our hosted digital marketing services . our support revenue also includes technical support and developer support to partners and developer organizations related to our desktop products . our maintenance and support offerings , which entitle customers to receive product upgrades and enhancements or technical support , depending on the offering , are recognized ratably over the term of the arrangement . segments in fiscal 2012 , we categorized our products into the following segments : digital media —our digital media segment provides tools and solutions that enable individuals , small businesses and enterprises to create , publish , promote and monetize their digital content anywhere . our customers include traditional content creators , web application developers and digital media professionals , as well as their management in marketing departments and agencies , companies and publishers . digital marketing —our digital marketing segment provides solutions and services for how digital advertising and marketing are created , managed , executed , measured and optimized . our customers include digital marketers , advertisers , publishers , merchandisers , web analysts , chief marketing officers and chief revenue officers . print and publishing —our print and publishing segment addresses market opportunities ranging from the diverse publishing needs of technical and business publishing to our legacy type and oem printing businesses . segment information ( dollars in millions ) replace_table_token_5_th 61 fiscal 2012 revenue compared to fiscal 2011 revenue digital media revenue from digital media remained relatively stable during fiscal 2012 as compared to fiscal 2011 , due to solid demand for

interest on these debt securities is generally payable either quarterly or semiannually . some promissory notes held by the fund provide that a portfolio company may elect to pay interest in cash or provide that discount interest may accrete in the form of original issue discount or payment-in-kind ( pik ) over the life of the notes by adding unpaid interest amounts to the principal balance . amortization of principal on our debt investments is generally deferred for several years from the date of initial investment . the principal amount of these debt securities and any accrued but unpaid interest generally will become due at maturity . we also earn interest income at market rates on investments in short-term marketable securities . from time to time , we generate income from time to time in the form of commitment , origination , structuring , and extension fees in connection with our investments . we recognize all such fees when earned . expenses . currently , our primary operating expenses include director fees and expenses , professional fees , compensation expense , general and administrative fees , and professional fees incurred in connection with our plan of reorganization . during 2017 , we incurred non-recurring expenses of $ 2.5 million , and also received a one-time merger termination fee of $ 2.5 million , related to transaction costs described under significant developments – agreement to acquire portfolio company of mvc above . during 2016 , we did not incur any non-recurring expenses . non-operating subsidiary . we have established equus total return ( canada ) inc. as a wholly-owned subsidiary to facilitate payments to canadian personnel and contractors who provide services to the fund . we consider equus total return ( canada ) inc. a disregarded entity for accounting purposes , inasmuch as it does not have active operations . operating activities . we use cash to make new investments and follow-on investments in our existing portfolio companies . we record these investments at cost on the applicable trade date . realized gains or losses are computed using the specific identification method . on an ongoing basis , we carry our investments in our financial statements at fair value , as determined by our board of directors . see “ critical accounting policies – valuation of investments ” below . as of december 31 , 2017 , we had invested 83.2 % of our assets in securities of portfolio companies that constituted qualifying investments under the 1940 act . at that time , we had invested 51.0 % by value in shares of common stock , 19.1 % in membership interests in limited liability companies , and 2.3 % in various debt instruments . commitments . under certain circumstances , we make follow-on investments in some of our portfolio companies . as of december 31 , 2017 , we had no outstanding commitments to our portfolio company investments . financing activities . from time to time , we use leverage to finance a portion of our investments . we then repay such debt from the sale of portfolio securities . under the 1940 act , we have the ability to borrow funds and issue debt securities or preferred stock that are referred to as senior securities , subject to certain restrictions including an overall limitation on the amount of outstanding debt , or leverage , relative to equity of 2:1. because of the nature and size of our portfolio investments , we periodically borrow funds to make qualifying investments in order to maintain our qualification as a ric . during 2017 and 2016 , we borrowed such funds by accessing a margin account with a securities brokerage firm . we invest the proceeds of these margin loans in high-quality securities such as u.s. treasury securities until they are repaid . we refer to these high-quality investments as “ restricted assets ” because they are not generally available for investment in portfolio companies under the terms of borrowing . if , in the future , we can not borrow funds to make such qualifying investments at the end of any future quarter , we may not qualify as a ric and would become subject to corporate-level income tax on our net investment income and realized capital gains , if any . in addition , our distributions to stockholders would be taxable as ordinary dividends to the extent paid from earnings and profits . see “ federal income tax considerations . ” distributions . so long as we remain a bdc , we will continue to pay out net investment income and or realized capital gains , if any , on an annual basis as required under the 1940 act . 24 possible share repurchase . as a closed-end bdc , our shares of common stock are not redeemable at the option of stockholders , and our shares currently trade at a discount to their net asset value . our board has determined that it would be in the best interests of our stockholders to reduce or eliminate this market value discount . accordingly , we have been authorized to , and may from time to time , repurchase shares of our outstanding common stock ( including by means of tender offers or privately negotiated transactions ) in an effort to reduce or eliminate this market discount or to increase the net asset value of our shares . we are not required to undertake , and we have not previously undertaken , any such share repurchases , nor do we further anticipate taking any such action in 2018 . 2016 equity incentive plan on june 13 , 2016 , our shareholders approved the adoption of our 2016 equity incentive plan ( “ incentive plan ” ) . on january 10 , 2017 , the sec issued an order approving the incentive plan and certain awards intended to be made thereunder . story_separator_special_tag if we effect a consolidation of the fund as described under “ significant developments – plan of reorganization and share exchange with mvc capital ” and “ – authorization to withdraw bdc election ” above , we may utilize some or a substantial portion of our current liquidity in connection with a contemplated transaction as payment of the purchase price and to pay associated legal , due diligence , accounting , and other fees . further , we may borrow funds from financial institutions or other providers of debt capital to provide and pay for a part of the consideration and expenses necessary to effect a consolidation . year ended december 31 , 2017 as of december 31 , 2017 , we had total assets of $ 61.2 million , of which $ 31.1 million were invested in portfolio investments and $ 10.8 million were invested in cash and cash equivalents . among our portfolio investments , $ 1.0 million ( at fair value ) or 2.3 % of net asset value were in the form of promissory notes to a portfolio company as of december 31 , 2017. as of december 31 , 2017 , we also had $ 18.2 million of temporary cash investments and restricted cash , including primarily the proceeds of a quarter-end margin loan that we incurred to maintain the diversification requirements applicable to a ric . of this amount , $ 18.0 million was invested in u.s. treasury bills and $ 0.2 million represented a required 1 % brokerage margin deposit . these securities were held by a securities brokerage firm and pledged along with other assets to secure repayment of the margin loan . the u.s. treasury bills matured on january 4 , 2018 and we subsequently repaid this margin loan . the margin interest was paid on february 5 , 2018. operating activities . we provided $ 10.8 million in cash from operating activities in 2017. in 2017 , we made no new investments in portfolio companies . we paid fees to our professional advisers , directors , banks and others of $ 4.6 million , inclusive of expenses related to compensation in connection with the fund 's 2016 equity incentive plan , and received a fee of $ 2.5 million in connection with the termination of this agreement , while realizing a loss of $ 5 thousand from the disposition of temporary cash investments . financing activities . we used $ 12.0 million in cash from financing activities for 2017. we did not declare any dividends in 2016. year ended december 31 , 2016 as of december 31 , 2016 , we had total assets of $ 73.1 million , of which $ 29.7 million were invested in portfolio investments and $ 12.0 million were invested in cash and cash equivalents . among our portfolio investments , $ 3.0 million ( at fair value ) or 7.0 % of net asset value were in the form of notes receivable from portfolio companies as of december 31 , 2016 . 28 as of december 31 , 2016 , we also had $ 30.3 million of temporary cash investments and restricted cash , including primarily the proceeds of a quarter-end margin loan that we incurred to maintain the diversification requirements applicable to a ric . of this amount , $ 30.0 million was invested in u.s. treasury bills and $ 0.3 million represented a required 1 % brokerage margin deposit . these securities were held by a securities brokerage firm and pledged along with other assets to secure repayment of the margin loan . the u.s. treasury bills were sold on january 3 , 2017 and we subsequently repaid this margin loan . the margin interest was paid on february 3 , 2017. operating activities . we used $ 20.1 million in cash for operating activities in 2016. in 2016 , we made new investments of $ 2.0 million in portfolio companies . we paid fees to our professional advisers , directors , banks and others of $ 3.2 million , while realizing a loss of $ 13 thousand from the disposition of temporary cash investments . financing activities . we provided $ 15.0 million in cash from financing activities for 2016. we did not declare any dividends in 2016. year ended december 31 , 2015 as of december 31 , 2015 , we had total assets of $ 52.5 million , of which $ 19.4 million were invested in portfolio investments and $ 17.0 million were invested in cash and cash equivalents . among our portfolio investments , $ 0.9 million ( at fair value ) or 2.5 % of net asset value were in the form of notes receivable from portfolio companies as of december 31 , 2015. as of december 31 , 2015 , we also had $ 15.1 million of temporary cash investments and restricted cash , including primarily the proceeds of a quarter-end margin loan that we incurred to maintain the diversification requirements applicable to a ric . of this amount , $ 15.0 million was invested in u.s. treasury bills and $ 0.1 million represented a required 1 % brokerage margin deposit . these securities were held by a securities brokerage firm and pledged along with other assets to secure repayment of the margin loan . the u.s. treasury bills were sold on january 4 , 2016 and we subsequently repaid this margin loan . the margin interest was paid on february 3 , 2016. operating activities . we provided $ 1.3 million in cash for operating activities in 2015. in 2015 , we made no new investments in portfolio companies . we paid fees to our professional advisers , directors , banks and others of $ 2.8 million , while realizing a loss of $ 2.5 million from the disposition of portfolio securities . financing activities . we provided $ 1.0 thousand in cash from financing activities for 2015. we did not declare any dividends in

cash non-cash follow-on pik total 5 th element tracking , llc $ — $ — $ — $ 12 $ 12 mvc capital , inc. — — — 265 265 $ — $ — $ — $ 277 $ 277 year ended december 31 , 2016 during the year ended december 31 , 2016 , we had investment activity of $ 2.4 million in three portfolio companies . we invested $ 2.0 million in a senior secured note issued by biogenic , bearing cash and pik interest at the combined rate of 16 % per annum . during 2016 , we received $ 0.04 million in semi-annual interest and $ 13 thousand in pik 'd interest in respect of this note . during 2016 , we received 22,863 shares of mvc in the form of stock dividend payments . we received $ 50 thousand in pik 'd interest in respect to our loan to 5 th element . the following table summarizes significant investment activity during the year ended december 31 , 2016 ( in thousands ) : replace_table_token_3_th 30 year ended december 31 , 2015 during the year ended december 31 , 2015 , we received a one-year subordinated note from 5 th element in the original principal amount of $ 0.9 million , bearing interest at the rate of 14 % per annum in connection with the sale of our interest in spectrum . we also received 23,694 shares of mvc in the form of dividend payments . the following table includes significant investment activity during the year ended december 31 , 2015 ( in thousands ) : replace_table_token_4_th realized gains and losses on sales of portfolio securities year ended december 31 , 2017 during 2017 , we realized capital losses of $ 5 thousand as a result of disposition of temporary cash investments . year ended december 31 , 2016 during 2016 , we realized capital losses of $ 13 thousand as a result of disposition of temporary cash 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. ```cash non-cash follow-on pik total 5 th element tracking , llc $ — $ — $ — $ 12 $ 12 mvc capital , inc. — — — 265 265 $ — $ — $ — $ 277 $ 277 year ended december 31 , 2016 during the year ended december 31 , 2016 , we had investment activity of $ 2.4 million in three portfolio companies . we invested $ 2.0 million in a senior secured note issued by biogenic , bearing cash and pik interest at the combined rate of 16 % per annum . during 2016 , we received $ 0.04 million in semi-annual interest and $ 13 thousand in pik 'd interest in respect of this note . during 2016 , we received 22,863 shares of mvc in the form of stock dividend payments . we received $ 50 thousand in pik 'd interest in respect to our loan to 5 th element . the following table summarizes significant investment activity during the year ended december 31 , 2016 ( in thousands ) : replace_table_token_3_th 30 year ended december 31 , 2015 during the year ended december 31 , 2015 , we received a one-year subordinated note from 5 th element in the original principal amount of $ 0.9 million , bearing interest at the rate of 14 % per annum in connection with the sale of our interest in spectrum . we also received 23,694 shares of mvc in the form of dividend payments . the following table includes significant investment activity during the year ended december 31 , 2015 ( in thousands ) : replace_table_token_4_th realized gains and losses on sales of portfolio securities year ended december 31 , 2017 during 2017 , we realized capital losses of $ 5 thousand as a result of disposition of temporary cash investments . year ended december 31 , 2016 during 2016 , we realized capital losses of $ 13 thousand as a result of disposition of temporary cash investments . ``` Suspicious Activity Report : interest on these debt securities is generally payable either quarterly or semiannually . some promissory notes held by the fund provide that a portfolio company may elect to pay interest in cash or provide that discount interest may accrete in the form of original issue discount or payment-in-kind ( pik ) over the life of the notes by adding unpaid interest amounts to the principal balance . amortization of principal on our debt investments is generally deferred for several years from the date of initial investment . the principal amount of these debt securities and any accrued but unpaid interest generally will become due at maturity . we also earn interest income at market rates on investments in short-term marketable securities . from time to time , we generate income from time to time in the form of commitment , origination , structuring , and extension fees in connection with our investments . we recognize all such fees when earned . expenses . currently , our primary operating expenses include director fees and expenses , professional fees , compensation expense , general and administrative fees , and professional fees incurred in connection with our plan of reorganization . during 2017 , we incurred non-recurring expenses of $ 2.5 million , and also received a one-time merger termination fee of $ 2.5 million , related to transaction costs described under significant developments – agreement to acquire portfolio company of mvc above . during 2016 , we did not incur any non-recurring expenses . non-operating subsidiary . we have established equus total return ( canada ) inc. as a wholly-owned subsidiary to facilitate payments to canadian personnel and contractors who provide services to the fund . we consider equus total return ( canada ) inc. a disregarded entity for accounting purposes , inasmuch as it does not have active operations . operating activities . we use cash to make new investments and follow-on investments in our existing portfolio companies . we record these investments at cost on the applicable trade date . realized gains or losses are computed using the specific identification method . on an ongoing basis , we carry our investments in our financial statements at fair value , as determined by our board of directors . see “ critical accounting policies – valuation of investments ” below . as of december 31 , 2017 , we had invested 83.2 % of our assets in securities of portfolio companies that constituted qualifying investments under the 1940 act . at that time , we had invested 51.0 % by value in shares of common stock , 19.1 % in membership interests in limited liability companies , and 2.3 % in various debt instruments . commitments . under certain circumstances , we make follow-on investments in some of our portfolio companies . as of december 31 , 2017 , we had no outstanding commitments to our portfolio company investments . financing activities . from time to time , we use leverage to finance a portion of our investments . we then repay such debt from the sale of portfolio securities . under the 1940 act , we have the ability to borrow funds and issue debt securities or preferred stock that are referred to as senior securities , subject to certain restrictions including an overall limitation on the amount of outstanding debt , or leverage , relative to equity of 2:1. because of the nature and size of our portfolio investments , we periodically borrow funds to make qualifying investments in order to maintain our qualification as a ric . during 2017 and 2016 , we borrowed such funds by accessing a margin account with a securities brokerage firm . we invest the proceeds of these margin loans in high-quality securities such as u.s. treasury securities until they are repaid . we refer to these high-quality investments as “ restricted assets ” because they are not generally available for investment in portfolio companies under the terms of borrowing . if , in the future , we can not borrow funds to make such qualifying investments at the end of any future quarter , we may not qualify as a ric and would become subject to corporate-level income tax on our net investment income and realized capital gains , if any . in addition , our distributions to stockholders would be taxable as ordinary dividends to the extent paid from earnings and profits . see “ federal income tax considerations . ” distributions . so long as we remain a bdc , we will continue to pay out net investment income and or realized capital gains , if any , on an annual basis as required under the 1940 act . 24 possible share repurchase . as a closed-end bdc , our shares of common stock are not redeemable at the option of stockholders , and our shares currently trade at a discount to their net asset value . our board has determined that it would be in the best interests of our stockholders to reduce or eliminate this market value discount . accordingly , we have been authorized to , and may from time to time , repurchase shares of our outstanding common stock ( including by means of tender offers or privately negotiated transactions ) in an effort to reduce or eliminate this market discount or to increase the net asset value of our shares . we are not required to undertake , and we have not previously undertaken , any such share repurchases , nor do we further anticipate taking any such action in 2018 . 2016 equity incentive plan on june 13 , 2016 , our shareholders approved the adoption of our 2016 equity incentive plan ( “ incentive plan ” ) . on january 10 , 2017 , the sec issued an order approving the incentive plan and certain awards intended to be made thereunder . story_separator_special_tag if we effect a consolidation of the fund as described under “ significant developments – plan of reorganization and share exchange with mvc capital ” and “ – authorization to withdraw bdc election ” above , we may utilize some or a substantial portion of our current liquidity in connection with a contemplated transaction as payment of the purchase price and to pay associated legal , due diligence , accounting , and other fees . further , we may borrow funds from financial institutions or other providers of debt capital to provide and pay for a part of the consideration and expenses necessary to effect a consolidation . year ended december 31 , 2017 as of december 31 , 2017 , we had total assets of $ 61.2 million , of which $ 31.1 million were invested in portfolio investments and $ 10.8 million were invested in cash and cash equivalents . among our portfolio investments , $ 1.0 million ( at fair value ) or 2.3 % of net asset value were in the form of promissory notes to a portfolio company as of december 31 , 2017. as of december 31 , 2017 , we also had $ 18.2 million of temporary cash investments and restricted cash , including primarily the proceeds of a quarter-end margin loan that we incurred to maintain the diversification requirements applicable to a ric . of this amount , $ 18.0 million was invested in u.s. treasury bills and $ 0.2 million represented a required 1 % brokerage margin deposit . these securities were held by a securities brokerage firm and pledged along with other assets to secure repayment of the margin loan . the u.s. treasury bills matured on january 4 , 2018 and we subsequently repaid this margin loan . the margin interest was paid on february 5 , 2018. operating activities . we provided $ 10.8 million in cash from operating activities in 2017. in 2017 , we made no new investments in portfolio companies . we paid fees to our professional advisers , directors , banks and others of $ 4.6 million , inclusive of expenses related to compensation in connection with the fund 's 2016 equity incentive plan , and received a fee of $ 2.5 million in connection with the termination of this agreement , while realizing a loss of $ 5 thousand from the disposition of temporary cash investments . financing activities . we used $ 12.0 million in cash from financing activities for 2017. we did not declare any dividends in 2016. year ended december 31 , 2016 as of december 31 , 2016 , we had total assets of $ 73.1 million , of which $ 29.7 million were invested in portfolio investments and $ 12.0 million were invested in cash and cash equivalents . among our portfolio investments , $ 3.0 million ( at fair value ) or 7.0 % of net asset value were in the form of notes receivable from portfolio companies as of december 31 , 2016 . 28 as of december 31 , 2016 , we also had $ 30.3 million of temporary cash investments and restricted cash , including primarily the proceeds of a quarter-end margin loan that we incurred to maintain the diversification requirements applicable to a ric . of this amount , $ 30.0 million was invested in u.s. treasury bills and $ 0.3 million represented a required 1 % brokerage margin deposit . these securities were held by a securities brokerage firm and pledged along with other assets to secure repayment of the margin loan . the u.s. treasury bills were sold on january 3 , 2017 and we subsequently repaid this margin loan . the margin interest was paid on february 3 , 2017. operating activities . we used $ 20.1 million in cash for operating activities in 2016. in 2016 , we made new investments of $ 2.0 million in portfolio companies . we paid fees to our professional advisers , directors , banks and others of $ 3.2 million , while realizing a loss of $ 13 thousand from the disposition of temporary cash investments . financing activities . we provided $ 15.0 million in cash from financing activities for 2016. we did not declare any dividends in 2016. year ended december 31 , 2015 as of december 31 , 2015 , we had total assets of $ 52.5 million , of which $ 19.4 million were invested in portfolio investments and $ 17.0 million were invested in cash and cash equivalents . among our portfolio investments , $ 0.9 million ( at fair value ) or 2.5 % of net asset value were in the form of notes receivable from portfolio companies as of december 31 , 2015. as of december 31 , 2015 , we also had $ 15.1 million of temporary cash investments and restricted cash , including primarily the proceeds of a quarter-end margin loan that we incurred to maintain the diversification requirements applicable to a ric . of this amount , $ 15.0 million was invested in u.s. treasury bills and $ 0.1 million represented a required 1 % brokerage margin deposit . these securities were held by a securities brokerage firm and pledged along with other assets to secure repayment of the margin loan . the u.s. treasury bills were sold on january 4 , 2016 and we subsequently repaid this margin loan . the margin interest was paid on february 3 , 2016. operating activities . we provided $ 1.3 million in cash for operating activities in 2015. in 2015 , we made no new investments in portfolio companies . we paid fees to our professional advisers , directors , banks and others of $ 2.8 million , while realizing a loss of $ 2.5 million from the disposition of portfolio securities . financing activities . we provided $ 1.0 thousand in cash from financing activities for 2015. we did not declare any dividends in

the company defines “ internal sales growth ” as the increase or decrease in net sales from period to period , excluding ( 1 ) precious metal content ; ( 2 ) the impact of changes in currency exchange rates ; and ( 3 ) net acquisition sales growth . the company defines “ net acquisition sales growth ” as the net sales , excluding precious metal content , for a period of twelve months following 25 the transaction date of businesses that have been acquired , less the net sales , excluding precious metal content , for a period of twelve months prior to the transaction date of businesses that have been divested . the company defines “ constant currency sales growth ” as internal sales growth plus net acquisition sales growth . the primary drivers of internal growth includes global dental market growth , innovation and new products launched by the company , and continued investments in sales and marketing resources , including clinical education . management believes that over time , the company 's ability to execute its strategies allows it to grow at a modest premium to the growth rate of the underlying dental market . management further believes that the global dental market has generally in the past and should over time in the future grow at a premium to underlying economic growth rates . considering all of these factors , the company assumes that the long-term growth rate for the dental market will range from 3 % to 6 % on average and that the company targets a slight premium to market growth . over the past several years , growth in the global dental and other healthcare markets have been restrained by lower economic growth in western europe and certain other markets compared to historical averages and , accordingly , market growth rates , and the company 's internal growth rate remains uncertain in the near term . the company 's business is subject to quarterly fluctuations of consolidated net sales and net income . the company typically implements most of its price changes at the beginning of the first or fourth quarters . price changes , other marketing and promotional programs as well as the management of inventory levels by distributors and the implementation of strategic initiatives , may impact sales levels in a given period . the company has a focus on minimizing costs and achieving operational efficiencies . management continues to evaluate the consolidation of operations or functions to reduce costs . in addition , the company remains focused on enhancing efficiency through expanded use of technology and process improvement initiatives . the company believes that the benefits from these initiatives will improve the cost structure and help offset areas of rising costs such as energy , employee benefits and regulatory oversight and compliance . in connection with these efforts , 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 . product innovation is a key component of the company 's overall growth strategy . new advances in technology are anticipated to have a significant influence on future products in dentistry and consumable medical device markets in which the company operates . as a result , the company continues to pursue research and development initiatives to support technological development , including collaborations with various research institutions and dental schools . in addition , the company licenses and purchases technologies developed by third parties . although the company believes these activities will lead to new innovative dental and consumable medical device products , they involve new technologies and there can be no assurance that commercialized products will be developed . the company will continue to pursue opportunities to expand the company 's product offerings through acquisitions . although the professional dental and the consumable medical device markets in which the company operates have experienced consolidation , they remain fragmented . management believes that there will continue to be adequate opportunities to participate as a consolidator in the industry for the foreseeable future . impact of foreign currencies due to the international nature of dentsply 's business , movements in foreign exchange rates may impact the consolidated statements of operations . with 65 % to 70 % of the company 's net sales located in regions outside the u.s. , the company 's consolidated net sales are impacted negatively by the strengthening or positively by the weakening of the u.s. dollar . additionally , movements in certain foreign exchange rates may unfavorably or favorably impact the company 's results of operations , financial condition and liquidity . reclassification of prior year amounts certain reclassifications have been made to prior years ' data in order to conform to the current year presentation . specifically , during the year ended 2013 , the company realigned certain implant and implant related businesses as a result of changes to the management structure . the segment information below reflects the revised structure for all periods shown . 26 results of operations 2013 compared to 2012 net sales the discussion below summarizes the company 's sales growth , excluding precious metal content , into the following components : ( 1 ) constant currency sales growth , which includes internal sales growth and net acquisition sales growth , and ( 2 ) foreign currency translation . these disclosures of net sales growth provide the reader with sales results on a comparable basis between periods . management believes that the presentation of net sales , excluding precious metal content , provides useful information to investors because a significant portion of dentsply 's net sales is comprised of sales of precious metals generated through sales of the company 's precious metal dental alloy products , which are used by third parties to construct crown and bridge materials . story_separator_special_tag europe during 2012 , net sales , excluding precious metal content , increased by 27.5 % on a constant currency basis , including 24.9 % of acquisition growth . the internal growth rate was 2.6 % and was primarily driven by sales growth in the dental specialty , dental consumable and consumable medical device products partially offset by decreased demand for precious metal alloy products within the dental laboratory products category . all other regions during 2012 , net sales , excluding precious metal content , increased 15.9 % on a constant currency basis , which includes 8.7 % of acquisition growth . the internal growth was 7.2 % , driven by sales growth in all dental product categories . 33 gross profit replace_table_token_18_th gross profit as a percentage of net sales , excluding precious metal content , increased 2.7 % during 2012 compared to 2011. the gross profit rate was positively impacted by improved product pricing , favorable product mix primarily associated with recent acquisitions as well as a favorable rate impact from changes in foreign currency translation rates offset by higher manufacturing costs . in 2011 , the gross profit rate was negatively impacted by approximately two percentage points from expensing inventory for the fair value adjustments associated with acquisitions . expenses selling , general and administrative ( “ sg & a ” ) expenses replace_table_token_19_th sg & a expenses as a percentage of net sales , excluding precious metal content , was 2.1 % higher than in 2011. increased sg & a expenses as a percent of net sales , excluding precious metal content , was a result of the higher expense rate of the astra tech business and $ 30.9 million of amortization primarily associated with 2011 acquisitions as well as key global marketing events . restructuring and other costs replace_table_token_20_th the company recorded net restructuring and other costs of $ 25.7 million in 2012 compared to $ 35.9 million in 2011. in 2012 , restructuring cost of $ 17.8 million were related to the implant integration activity as well as the closure and consolidation of facilities in an effort to streamline the company 's operations and better leverage the company 's resources . restructuring and other costs also include $ 5.2 million related to an impairment of previously acquired technology . in 2011 , these costs were related to expenses associated with the acquisition of astra tech of $ 18.0 million , legal settlement cost of $ 12.6 million as well as restructuring costs primarily related to the orthodontic business . also , the company recorded certain other costs of $ 1.5 million related to an impairment of an intangible asset . the benefits associated with the 2011 and 2012 restructuring plans were immaterial to the current period . the company estimates the future annual savings related to these plans to be in the range of $ 10 million to $ 15 million to be realized over the next three to five years . there is no assurance that future savings will be fully achieved . 34 other income and expenses replace_table_token_21_th net interest expense the change in net interest expense in 2012 compared to 2011 was primarily the result of higher average debt levels and lower cash levels as a result of financing the $ 1.8 billion astra tech acquisition in 2011. interest expense increased $ 13.0 million over 2011. other expense , net other expense in the 2012 period included approximately $ 2.7 million of currency transaction losses and $ 0.5 million of other non-operating expense . other expense in the 2011 period included approximately $ 1.7 million of currency transaction losses , $ 2.9 million of interest rate swap terminations , $ 3.8 million of treasury rate lock ineffectiveness , and $ 0.6 million of other non-operating expense . income taxes and net income replace_table_token_22_th provision for income taxes during 2012 , the company entered into various legal entity restructuring activities to complete the integration of the astra tech business acquired in august 2011. in addition to the specific tax integration of the astra tech subsidiaries with legacy dentsply subsidiaries , the company also realigned much of its foreign legal entity structure to better align operations and cash management activities . as a part of this restructuring , the company was able to capture an overall net benefit from anticipated tax losses of $ 57.7 million . most of the cash flow benefit from this tax matter , including utilization of an existing credit carryforward of approximately $ 49.6 million will be realized over the next several years . also , the company recognized $ 12.0 million of tax benefit from a reduction in foreign tax rates and separately recorded a valuation allowance on previously recognized assets of $ 10.4 million . during 2011 , the company recorded a tax benefit from the release of a valuation allowance on previously unrecognized tax loss carryforwards of approximately $ 46.7 million . further information regarding the details of income taxes is presented in note 14 , income taxes , to the consolidated financial statements in this form 10-k. the company 's effective tax rate for 2012 and 2011 was 2.7 % and 4.3 % , respectively . in 2012 , the company 's effective tax rate included the impact of amortization of purchased intangible assets , integration and restructuring and other costs as well as various income tax adjustments which impacted income before taxes and the provisions for income taxes by $ 91.7 million and $ 90.0 million , respectively . in 2011 , the company 's effective income tax rate included the impact of acquisition related activity , restructuring and other costs , amortization of purchased intangibles from acquisitions and the release of the valuation allowance 35 and various income tax adjustments , which impacted income before income taxes and the provision for income taxes by $ 123.8 million and $ 75.4 million , respectively . equity in net income ( loss )

liquidity and capital resources cash flows from operating activities during the year ended december 31 , 2013 were $ 417.8 million compared to $ 369.7 million during the year ended december 31 , 2012. the year over year improvement in cash from operations of $ 48.1 million was primarily the result of substantially lower taxes paid partially offset by an increase in working capital . the company 's cash , cash equivalents and short-term investments decreased by $ 5.1 million during the year ended december 31 , 2013 to $ 75.0 million . for the year ended december 31 , 2013 , the number of days for sales outstanding in accounts receivable increased by three days to 56 days as compared to 53 days in 2012. on a constant currency basis , the number of days of sales in inventory increased by eight days to 114 days at december 31 , 2013 as compared to 106 days at december 31 , 2012. the company has strategically increased inventory in a few businesses as part of transition plans associated with anticipated operational changes . the company anticipates that inventory levels may continue to increase slightly in 2014 before gradually returning to more normal levels by the end of 2015. investing activities during 2013 include capital expenditures of $ 100.3 million . the company also invested $ 75.2 million related to the acquisition of two businesses and final payments on previous acquisitions . at december 31 , 2013 , the company had authorization to maintain up to 34.0 million shares of treasury stock under its stock repurchase program as approved by the board of directors . under this program , the company purchased approximately 2.7 million shares , or approximately 1.9 % of average diluted shares outstanding , during 2013 at an average price of $ 43.94. at december 31 , 2013 and 2012 , the company held 20.5 million shares of treasury stock .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources cash flows from operating activities during the year ended december 31 , 2013 were $ 417.8 million compared to $ 369.7 million during the year ended december 31 , 2012. the year over year improvement in cash from operations of $ 48.1 million was primarily the result of substantially lower taxes paid partially offset by an increase in working capital . the company 's cash , cash equivalents and short-term investments decreased by $ 5.1 million during the year ended december 31 , 2013 to $ 75.0 million . for the year ended december 31 , 2013 , the number of days for sales outstanding in accounts receivable increased by three days to 56 days as compared to 53 days in 2012. on a constant currency basis , the number of days of sales in inventory increased by eight days to 114 days at december 31 , 2013 as compared to 106 days at december 31 , 2012. the company has strategically increased inventory in a few businesses as part of transition plans associated with anticipated operational changes . the company anticipates that inventory levels may continue to increase slightly in 2014 before gradually returning to more normal levels by the end of 2015. investing activities during 2013 include capital expenditures of $ 100.3 million . the company also invested $ 75.2 million related to the acquisition of two businesses and final payments on previous acquisitions . at december 31 , 2013 , the company had authorization to maintain up to 34.0 million shares of treasury stock under its stock repurchase program as approved by the board of directors . under this program , the company purchased approximately 2.7 million shares , or approximately 1.9 % of average diluted shares outstanding , during 2013 at an average price of $ 43.94. at december 31 , 2013 and 2012 , the company held 20.5 million shares of treasury stock . ``` Suspicious Activity Report : the company defines “ internal sales growth ” as the increase or decrease in net sales from period to period , excluding ( 1 ) precious metal content ; ( 2 ) the impact of changes in currency exchange rates ; and ( 3 ) net acquisition sales growth . the company defines “ net acquisition sales growth ” as the net sales , excluding precious metal content , for a period of twelve months following 25 the transaction date of businesses that have been acquired , less the net sales , excluding precious metal content , for a period of twelve months prior to the transaction date of businesses that have been divested . the company defines “ constant currency sales growth ” as internal sales growth plus net acquisition sales growth . the primary drivers of internal growth includes global dental market growth , innovation and new products launched by the company , and continued investments in sales and marketing resources , including clinical education . management believes that over time , the company 's ability to execute its strategies allows it to grow at a modest premium to the growth rate of the underlying dental market . management further believes that the global dental market has generally in the past and should over time in the future grow at a premium to underlying economic growth rates . considering all of these factors , the company assumes that the long-term growth rate for the dental market will range from 3 % to 6 % on average and that the company targets a slight premium to market growth . over the past several years , growth in the global dental and other healthcare markets have been restrained by lower economic growth in western europe and certain other markets compared to historical averages and , accordingly , market growth rates , and the company 's internal growth rate remains uncertain in the near term . the company 's business is subject to quarterly fluctuations of consolidated net sales and net income . the company typically implements most of its price changes at the beginning of the first or fourth quarters . price changes , other marketing and promotional programs as well as the management of inventory levels by distributors and the implementation of strategic initiatives , may impact sales levels in a given period . the company has a focus on minimizing costs and achieving operational efficiencies . management continues to evaluate the consolidation of operations or functions to reduce costs . in addition , the company remains focused on enhancing efficiency through expanded use of technology and process improvement initiatives . the company believes that the benefits from these initiatives will improve the cost structure and help offset areas of rising costs such as energy , employee benefits and regulatory oversight and compliance . in connection with these efforts , 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 . product innovation is a key component of the company 's overall growth strategy . new advances in technology are anticipated to have a significant influence on future products in dentistry and consumable medical device markets in which the company operates . as a result , the company continues to pursue research and development initiatives to support technological development , including collaborations with various research institutions and dental schools . in addition , the company licenses and purchases technologies developed by third parties . although the company believes these activities will lead to new innovative dental and consumable medical device products , they involve new technologies and there can be no assurance that commercialized products will be developed . the company will continue to pursue opportunities to expand the company 's product offerings through acquisitions . although the professional dental and the consumable medical device markets in which the company operates have experienced consolidation , they remain fragmented . management believes that there will continue to be adequate opportunities to participate as a consolidator in the industry for the foreseeable future . impact of foreign currencies due to the international nature of dentsply 's business , movements in foreign exchange rates may impact the consolidated statements of operations . with 65 % to 70 % of the company 's net sales located in regions outside the u.s. , the company 's consolidated net sales are impacted negatively by the strengthening or positively by the weakening of the u.s. dollar . additionally , movements in certain foreign exchange rates may unfavorably or favorably impact the company 's results of operations , financial condition and liquidity . reclassification of prior year amounts certain reclassifications have been made to prior years ' data in order to conform to the current year presentation . specifically , during the year ended 2013 , the company realigned certain implant and implant related businesses as a result of changes to the management structure . the segment information below reflects the revised structure for all periods shown . 26 results of operations 2013 compared to 2012 net sales the discussion below summarizes the company 's sales growth , excluding precious metal content , into the following components : ( 1 ) constant currency sales growth , which includes internal sales growth and net acquisition sales growth , and ( 2 ) foreign currency translation . these disclosures of net sales growth provide the reader with sales results on a comparable basis between periods . management believes that the presentation of net sales , excluding precious metal content , provides useful information to investors because a significant portion of dentsply 's net sales is comprised of sales of precious metals generated through sales of the company 's precious metal dental alloy products , which are used by third parties to construct crown and bridge materials . story_separator_special_tag europe during 2012 , net sales , excluding precious metal content , increased by 27.5 % on a constant currency basis , including 24.9 % of acquisition growth . the internal growth rate was 2.6 % and was primarily driven by sales growth in the dental specialty , dental consumable and consumable medical device products partially offset by decreased demand for precious metal alloy products within the dental laboratory products category . all other regions during 2012 , net sales , excluding precious metal content , increased 15.9 % on a constant currency basis , which includes 8.7 % of acquisition growth . the internal growth was 7.2 % , driven by sales growth in all dental product categories . 33 gross profit replace_table_token_18_th gross profit as a percentage of net sales , excluding precious metal content , increased 2.7 % during 2012 compared to 2011. the gross profit rate was positively impacted by improved product pricing , favorable product mix primarily associated with recent acquisitions as well as a favorable rate impact from changes in foreign currency translation rates offset by higher manufacturing costs . in 2011 , the gross profit rate was negatively impacted by approximately two percentage points from expensing inventory for the fair value adjustments associated with acquisitions . expenses selling , general and administrative ( “ sg & a ” ) expenses replace_table_token_19_th sg & a expenses as a percentage of net sales , excluding precious metal content , was 2.1 % higher than in 2011. increased sg & a expenses as a percent of net sales , excluding precious metal content , was a result of the higher expense rate of the astra tech business and $ 30.9 million of amortization primarily associated with 2011 acquisitions as well as key global marketing events . restructuring and other costs replace_table_token_20_th the company recorded net restructuring and other costs of $ 25.7 million in 2012 compared to $ 35.9 million in 2011. in 2012 , restructuring cost of $ 17.8 million were related to the implant integration activity as well as the closure and consolidation of facilities in an effort to streamline the company 's operations and better leverage the company 's resources . restructuring and other costs also include $ 5.2 million related to an impairment of previously acquired technology . in 2011 , these costs were related to expenses associated with the acquisition of astra tech of $ 18.0 million , legal settlement cost of $ 12.6 million as well as restructuring costs primarily related to the orthodontic business . also , the company recorded certain other costs of $ 1.5 million related to an impairment of an intangible asset . the benefits associated with the 2011 and 2012 restructuring plans were immaterial to the current period . the company estimates the future annual savings related to these plans to be in the range of $ 10 million to $ 15 million to be realized over the next three to five years . there is no assurance that future savings will be fully achieved . 34 other income and expenses replace_table_token_21_th net interest expense the change in net interest expense in 2012 compared to 2011 was primarily the result of higher average debt levels and lower cash levels as a result of financing the $ 1.8 billion astra tech acquisition in 2011. interest expense increased $ 13.0 million over 2011. other expense , net other expense in the 2012 period included approximately $ 2.7 million of currency transaction losses and $ 0.5 million of other non-operating expense . other expense in the 2011 period included approximately $ 1.7 million of currency transaction losses , $ 2.9 million of interest rate swap terminations , $ 3.8 million of treasury rate lock ineffectiveness , and $ 0.6 million of other non-operating expense . income taxes and net income replace_table_token_22_th provision for income taxes during 2012 , the company entered into various legal entity restructuring activities to complete the integration of the astra tech business acquired in august 2011. in addition to the specific tax integration of the astra tech subsidiaries with legacy dentsply subsidiaries , the company also realigned much of its foreign legal entity structure to better align operations and cash management activities . as a part of this restructuring , the company was able to capture an overall net benefit from anticipated tax losses of $ 57.7 million . most of the cash flow benefit from this tax matter , including utilization of an existing credit carryforward of approximately $ 49.6 million will be realized over the next several years . also , the company recognized $ 12.0 million of tax benefit from a reduction in foreign tax rates and separately recorded a valuation allowance on previously recognized assets of $ 10.4 million . during 2011 , the company recorded a tax benefit from the release of a valuation allowance on previously unrecognized tax loss carryforwards of approximately $ 46.7 million . further information regarding the details of income taxes is presented in note 14 , income taxes , to the consolidated financial statements in this form 10-k. the company 's effective tax rate for 2012 and 2011 was 2.7 % and 4.3 % , respectively . in 2012 , the company 's effective tax rate included the impact of amortization of purchased intangible assets , integration and restructuring and other costs as well as various income tax adjustments which impacted income before taxes and the provisions for income taxes by $ 91.7 million and $ 90.0 million , respectively . in 2011 , the company 's effective income tax rate included the impact of acquisition related activity , restructuring and other costs , amortization of purchased intangibles from acquisitions and the release of the valuation allowance 35 and various income tax adjustments , which impacted income before income taxes and the provision for income taxes by $ 123.8 million and $ 75.4 million , respectively . equity in net income ( loss )

for sales of products made to distributors , the company considers a number of factors in determining whether revenue is recognized upon transfer of title to the distributor , or when payment is received . these factors include , but are not limited to , whether the payment terms offered to the distributor are considered to be non-standard , the distributor history of adhering to the terms of its contractual arrangements with the company , the level of inventories maintained by the distributor , whether the company has a pattern of granting concessions for the benefit of the distributor , and whether there are other conditions that may indicate that the sale to the distributor is not substantive . the company currently recognizes revenue primarily on the sell-in method with its distributors . revenue arrangements with multiple deliverables are divided into units of accounting if certain criteria are met , including whether the deliverable item ( s ) has value to the customer on a stand-alone basis . revenue for each unit of accounting is recognized as the unit of accounting is delivered . arrangement consideration is allocated to each unit of accounting based upon the relative estimated selling prices of the separate units of accounting contained within an arrangement containing multiple deliverables . estimated selling prices are determined using vendor specific objective evidence of value ( “ vsoe ” ) , when available , or an estimate of selling price when vsoe is not available for a given unit of accounting . significant inputs for the estimates of the selling price of separate units of accounting include market and pricing trends and a customer 's geographic location . the company accounts for training and installation , and service agreements as separate units of accounting . 29 service revenue generated from contracts for providing maintenance of equipment is amortized over the life of the agreement . all other service revenue is recognized at the time the service is completed . for licensing agreements pursuant to which the company receives up-front licensing fees for products or technologies that will be provided by the company over the term of the arrangements , the company defers the up-front fees and recognizes the fees as revenue on a straight-line method over the term of the respective license . for license agreements that require no continuing performance on the company 's part , license fee revenue is recognized immediately upon grant of the license . shipping and handling fees billed to customers are included in net revenues , while the related costs are included in cost of revenues . stock-based compensation the company calculates stock-based compensation on the date of the grant using the black scholes-merton option-pricing formula . the compensation expense is then amortized over the vesting period . the company uses the black-scholes-merton option-pricing formula in determining the fair value of the company 's options at the grant date and applies judgment in estimating the key assumptions that are critical to the model such as the expected term , volatility and forfeiture rate of an option . the company 's estimate of these key assumptions is based on historical information and judgment regarding market factors and trends . if any of the key assumptions change significantly , stock-based compensation expense for new awards may differ materially in the future from that recorded in the current period . warranty the company provides for the estimated cost of product warranties at the time revenue is recognized . while the company engages in extensive product quality programs and processes , including actively monitoring and evaluating the quality of its component suppliers , the company 's warranty obligation is affected by product failure rates , material usage and service delivery costs incurred in correcting a product failure . should actual product failure rates , material usage or service delivery costs differ from the company 's estimates , revisions to the estimated warranty liability could have a material impact on the company 's financial position , cash flows or results of operations . inventory reserve the company states inventories at lower of cost or market value determined on a first-in , first-out basis . the company provides inventory allowances when conditions indicate that the selling price could be less than cost due to physical deterioration , obsolescence , changes in price levels , or other causes , which it includes as a component of cost of revenues . additionally , the company provides reserves for excess and slow-moving inventory on hand that are not expected to be sold to reduce the carrying amount of slow-moving inventory to its estimated net realizable value . the reserves are based upon estimates about future demand from our customers and distributors and market conditions . because some of the company 's products are highly dependent on government and third-party funding , current customer use and validation , and completion of regulatory and field trials , there is a risk that we will forecast incorrectly and purchase or produce excess inventories . as a result , actual demand may differ from forecasts and the company may be required to record additional inventory reserves that could adversely impact our gross margins . conversely , favorable changes in demand could result in higher gross margins when products previously reserved are sold . 30 ( b ) results of operations the following is management 's discussion and analysis of certain significant factors which have affected the company 's financial condition and results of operations during the periods included in the accompanying consolidated financial statements . results of operations for the year ended june 30 , 2013 as compared to the year ended june 30 , 2012 net revenues net revenues for the year ended june 30 , 2013 were $ 17,963,000 compared to $ 19,023,000 for the year ended june 30 , 2012 , a decrease of $ 1,060,000 , or 6 % . story_separator_special_tag the decrease in revenues is primarily due to the sale of the thermoline and cryoseal product lines in the current fiscal year . these two product lines represented $ 2,240,000 in revenues for the year ended june 30 , 2012 compared to $ 944,000 for the year ended june 30 , 2013. this decrease in revenues was offset by an increase in revenues from res-q disposables of $ 403,000 primarily due to an increase in the number of bone marrow procedures performed and an increase in new customers . we anticipate the termination of the ge distribution agreement will impact our axp revenues in the quarter ended september 30 , 2013 by approximately $ 800,000 as gehc sells-off their product inventory . sales analysis for the year ended june 30 : replace_table_token_5_th the following represents the company 's cumulative bioarchive system placements in the following geographies : replace_table_token_6_th 31 gross profit the company 's gross profit was $ 6,365,000 or 35 % of revenues for the year ended june 30 , 2013 , as compared to $ 6,333,000 or 33 % of revenues for the year ended june 30 , 2012. the increase in gross profit for the year ended june 30 , 2013 , is primarily due to lower inventory reserves and the mix of products sold in the prior fiscal year . we sold 25 cryoseal devices to asahi at cost during the quarter ended march 31 , 2012. inventory reserves recorded in the prior year were higher primarily due to the deceleration in sales of the thermoline freezers . sales and marketing expenses sales and marketing expenses were $ 2,955,000 for the year ended june 30 , 2013 , compared to $ 2,761,000 for the year ended june 30 , 2012 , an increase of $ 194,000 or 7 % . the increase is primarily due to establishing direct representation in asia . research and development expenses included in this line item are costs associated with our engineering , regulatory , scientific and clinical affairs functions . research and development expenses for the year ended june 30 , 2013 , were $ 2,991,000 , compared to $ 3,729,000 for fiscal 2012 , a decrease of $ 738,000 or 20 % . the decrease is primarily due to lower personnel costs primarily as a result of the january 2012 restructuring and lower costs for clinical studies , offset by an increase in consulting expenses for quality assurance and regulatory projects . general and administrative expenses general and administrative expenses were $ 5,645,000 for the year ended june 30 , 2013 , compared to $ 5,222,000 for the year ended june 30 , 2012 , an increase of $ 423,000 or 8 % . the increase is primarily due to legal and professional fees of $ 835,000 associated with the proposed merger with totipotentrx and $ 670,000 due to the legal diligence associated with the res-q patent litigation and the development of our counterclaim . these increases were offset by a decrease in severance costs of $ 360,000 as a result of the january 2012 restructuring . gain on sale of product lines during the year ended june 30 , 2013 , the company recognized a gain of $ 2,000,000 on the sale of certain intangible assets related to the cryoseal product line , including all associated patents and engineering files and $ 161,000 on the sale of the thermoline product line . adjusted ebitda the adjusted ebitda loss was $ 3,961,000 for the year ended june 30 , 2013 compared to $ 3,984,000 for the year ended june 30 , 2012. the adjusted ebitda loss was consistent with the prior year as we offset a decrease in revenues from a change in the mix of products sold in our global markets with a decrease in expenses resulting from our cost reduction initiatives . 32 results of operations for the year ended june 30 , 2012 as compared to the year ended june 30 , 2011 net revenues net revenues for the year ended june 30 , 2012 , were $ 19,023,000 compared to $ 23,400,000 for the year ended june 30 , 2011 , a decrease of $ 4,377,000 or 19 % . bioarchive device revenues decreased $ 2,600,000 as there were fewer devices sold in fiscal 2012 than in the prior year . the global economy has tightened capital budgets and lowered collection volumes which have impacted our bioarchive device sales . we also experienced a $ 740,000 decrease in our thermoline device revenues as we have stopped manufacturing devices due to our decision to divest the product line and a minimum of sales resources are devoted to the remaining devices in inventory . these decreases were offset by an increase in cryoseal device and spare part revenues of $ 790,000 as we shipped a final device order of 25 units to asahi during fiscal 2012. sales analysis for the year ended june 30 : replace_table_token_7_th the following represents the company 's cumulative bioarchive system placements in the following geographies : replace_table_token_8_th gross profit the company 's gross profit was $ 6,333,000 or 33 % of net revenues for the year ended june 30 , 2012 , as compared to $ 8,837,000 or 38 % for the year ended june 30 , 2011. the lower gross profit is primarily due to the mix of products sold and an increase in inventory and warranty reserves . we delivered a final order to asahi of 25 cryoseal devices , at cost . inventory reserves increased primarily due to the deceleration in sales of the thermoline freezers and warranty reserves increased primarily due to the axp disposable . 33 sales and marketing expenses sales and marketing expenses were $ 2,761,000 for the year ended june 30 , 2012 , compared to $ 3,195,000 for the year ended june 30 , 2011 , a decrease of $ 434,000 or 14 % . the decrease is primarily due to a decrease in

liquidity and capital resources at june 30 , 2013 , the company had a cash and cash equivalents balance of $ 6,884,000 and working capital of $ 11,125,000. this compared to a cash and cash equivalents balance of $ 7,879,000 and working capital of $ 14,034,000 at june 30 , 2012. in addition to revenues , the company has primarily financed operations through the private and public placement of equity securities and has raised approximately $ 112 million , net of expenses , through common and preferred stock financings and option and warrant exercises . net cash used in operating activities for the year ended june 30 , 2013 was $ 3,082,000 , primarily due to the net loss of $ 3,086,000 , offset by depreciation and stock-based compensation expense of $ 538,000 and $ 563,000 , respectively . inventories provided $ 795,000 of cash due to lower levels of our bioarchive and manual disposables . based on our cash balance , historical trends , planned cost reductions and future revenue projections , we believe our current funds are sufficient to provide for our projected needs to maintain operations and working capital requirements for at least the next 12 months . however , we intend to raise capital for other purposes and may need to raise additional funds should we not be able to maintain compliance with , or obtain forbearance of , our financial covenants . see part i item 1-business , cbr .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 june 30 , 2013 , the company had a cash and cash equivalents balance of $ 6,884,000 and working capital of $ 11,125,000. this compared to a cash and cash equivalents balance of $ 7,879,000 and working capital of $ 14,034,000 at june 30 , 2012. in addition to revenues , the company has primarily financed operations through the private and public placement of equity securities and has raised approximately $ 112 million , net of expenses , through common and preferred stock financings and option and warrant exercises . net cash used in operating activities for the year ended june 30 , 2013 was $ 3,082,000 , primarily due to the net loss of $ 3,086,000 , offset by depreciation and stock-based compensation expense of $ 538,000 and $ 563,000 , respectively . inventories provided $ 795,000 of cash due to lower levels of our bioarchive and manual disposables . based on our cash balance , historical trends , planned cost reductions and future revenue projections , we believe our current funds are sufficient to provide for our projected needs to maintain operations and working capital requirements for at least the next 12 months . however , we intend to raise capital for other purposes and may need to raise additional funds should we not be able to maintain compliance with , or obtain forbearance of , our financial covenants . see part i item 1-business , cbr . ``` Suspicious Activity Report : for sales of products made to distributors , the company considers a number of factors in determining whether revenue is recognized upon transfer of title to the distributor , or when payment is received . these factors include , but are not limited to , whether the payment terms offered to the distributor are considered to be non-standard , the distributor history of adhering to the terms of its contractual arrangements with the company , the level of inventories maintained by the distributor , whether the company has a pattern of granting concessions for the benefit of the distributor , and whether there are other conditions that may indicate that the sale to the distributor is not substantive . the company currently recognizes revenue primarily on the sell-in method with its distributors . revenue arrangements with multiple deliverables are divided into units of accounting if certain criteria are met , including whether the deliverable item ( s ) has value to the customer on a stand-alone basis . revenue for each unit of accounting is recognized as the unit of accounting is delivered . arrangement consideration is allocated to each unit of accounting based upon the relative estimated selling prices of the separate units of accounting contained within an arrangement containing multiple deliverables . estimated selling prices are determined using vendor specific objective evidence of value ( “ vsoe ” ) , when available , or an estimate of selling price when vsoe is not available for a given unit of accounting . significant inputs for the estimates of the selling price of separate units of accounting include market and pricing trends and a customer 's geographic location . the company accounts for training and installation , and service agreements as separate units of accounting . 29 service revenue generated from contracts for providing maintenance of equipment is amortized over the life of the agreement . all other service revenue is recognized at the time the service is completed . for licensing agreements pursuant to which the company receives up-front licensing fees for products or technologies that will be provided by the company over the term of the arrangements , the company defers the up-front fees and recognizes the fees as revenue on a straight-line method over the term of the respective license . for license agreements that require no continuing performance on the company 's part , license fee revenue is recognized immediately upon grant of the license . shipping and handling fees billed to customers are included in net revenues , while the related costs are included in cost of revenues . stock-based compensation the company calculates stock-based compensation on the date of the grant using the black scholes-merton option-pricing formula . the compensation expense is then amortized over the vesting period . the company uses the black-scholes-merton option-pricing formula in determining the fair value of the company 's options at the grant date and applies judgment in estimating the key assumptions that are critical to the model such as the expected term , volatility and forfeiture rate of an option . the company 's estimate of these key assumptions is based on historical information and judgment regarding market factors and trends . if any of the key assumptions change significantly , stock-based compensation expense for new awards may differ materially in the future from that recorded in the current period . warranty the company provides for the estimated cost of product warranties at the time revenue is recognized . while the company engages in extensive product quality programs and processes , including actively monitoring and evaluating the quality of its component suppliers , the company 's warranty obligation is affected by product failure rates , material usage and service delivery costs incurred in correcting a product failure . should actual product failure rates , material usage or service delivery costs differ from the company 's estimates , revisions to the estimated warranty liability could have a material impact on the company 's financial position , cash flows or results of operations . inventory reserve the company states inventories at lower of cost or market value determined on a first-in , first-out basis . the company provides inventory allowances when conditions indicate that the selling price could be less than cost due to physical deterioration , obsolescence , changes in price levels , or other causes , which it includes as a component of cost of revenues . additionally , the company provides reserves for excess and slow-moving inventory on hand that are not expected to be sold to reduce the carrying amount of slow-moving inventory to its estimated net realizable value . the reserves are based upon estimates about future demand from our customers and distributors and market conditions . because some of the company 's products are highly dependent on government and third-party funding , current customer use and validation , and completion of regulatory and field trials , there is a risk that we will forecast incorrectly and purchase or produce excess inventories . as a result , actual demand may differ from forecasts and the company may be required to record additional inventory reserves that could adversely impact our gross margins . conversely , favorable changes in demand could result in higher gross margins when products previously reserved are sold . 30 ( b ) results of operations the following is management 's discussion and analysis of certain significant factors which have affected the company 's financial condition and results of operations during the periods included in the accompanying consolidated financial statements . results of operations for the year ended june 30 , 2013 as compared to the year ended june 30 , 2012 net revenues net revenues for the year ended june 30 , 2013 were $ 17,963,000 compared to $ 19,023,000 for the year ended june 30 , 2012 , a decrease of $ 1,060,000 , or 6 % . story_separator_special_tag the decrease in revenues is primarily due to the sale of the thermoline and cryoseal product lines in the current fiscal year . these two product lines represented $ 2,240,000 in revenues for the year ended june 30 , 2012 compared to $ 944,000 for the year ended june 30 , 2013. this decrease in revenues was offset by an increase in revenues from res-q disposables of $ 403,000 primarily due to an increase in the number of bone marrow procedures performed and an increase in new customers . we anticipate the termination of the ge distribution agreement will impact our axp revenues in the quarter ended september 30 , 2013 by approximately $ 800,000 as gehc sells-off their product inventory . sales analysis for the year ended june 30 : replace_table_token_5_th the following represents the company 's cumulative bioarchive system placements in the following geographies : replace_table_token_6_th 31 gross profit the company 's gross profit was $ 6,365,000 or 35 % of revenues for the year ended june 30 , 2013 , as compared to $ 6,333,000 or 33 % of revenues for the year ended june 30 , 2012. the increase in gross profit for the year ended june 30 , 2013 , is primarily due to lower inventory reserves and the mix of products sold in the prior fiscal year . we sold 25 cryoseal devices to asahi at cost during the quarter ended march 31 , 2012. inventory reserves recorded in the prior year were higher primarily due to the deceleration in sales of the thermoline freezers . sales and marketing expenses sales and marketing expenses were $ 2,955,000 for the year ended june 30 , 2013 , compared to $ 2,761,000 for the year ended june 30 , 2012 , an increase of $ 194,000 or 7 % . the increase is primarily due to establishing direct representation in asia . research and development expenses included in this line item are costs associated with our engineering , regulatory , scientific and clinical affairs functions . research and development expenses for the year ended june 30 , 2013 , were $ 2,991,000 , compared to $ 3,729,000 for fiscal 2012 , a decrease of $ 738,000 or 20 % . the decrease is primarily due to lower personnel costs primarily as a result of the january 2012 restructuring and lower costs for clinical studies , offset by an increase in consulting expenses for quality assurance and regulatory projects . general and administrative expenses general and administrative expenses were $ 5,645,000 for the year ended june 30 , 2013 , compared to $ 5,222,000 for the year ended june 30 , 2012 , an increase of $ 423,000 or 8 % . the increase is primarily due to legal and professional fees of $ 835,000 associated with the proposed merger with totipotentrx and $ 670,000 due to the legal diligence associated with the res-q patent litigation and the development of our counterclaim . these increases were offset by a decrease in severance costs of $ 360,000 as a result of the january 2012 restructuring . gain on sale of product lines during the year ended june 30 , 2013 , the company recognized a gain of $ 2,000,000 on the sale of certain intangible assets related to the cryoseal product line , including all associated patents and engineering files and $ 161,000 on the sale of the thermoline product line . adjusted ebitda the adjusted ebitda loss was $ 3,961,000 for the year ended june 30 , 2013 compared to $ 3,984,000 for the year ended june 30 , 2012. the adjusted ebitda loss was consistent with the prior year as we offset a decrease in revenues from a change in the mix of products sold in our global markets with a decrease in expenses resulting from our cost reduction initiatives . 32 results of operations for the year ended june 30 , 2012 as compared to the year ended june 30 , 2011 net revenues net revenues for the year ended june 30 , 2012 , were $ 19,023,000 compared to $ 23,400,000 for the year ended june 30 , 2011 , a decrease of $ 4,377,000 or 19 % . bioarchive device revenues decreased $ 2,600,000 as there were fewer devices sold in fiscal 2012 than in the prior year . the global economy has tightened capital budgets and lowered collection volumes which have impacted our bioarchive device sales . we also experienced a $ 740,000 decrease in our thermoline device revenues as we have stopped manufacturing devices due to our decision to divest the product line and a minimum of sales resources are devoted to the remaining devices in inventory . these decreases were offset by an increase in cryoseal device and spare part revenues of $ 790,000 as we shipped a final device order of 25 units to asahi during fiscal 2012. sales analysis for the year ended june 30 : replace_table_token_7_th the following represents the company 's cumulative bioarchive system placements in the following geographies : replace_table_token_8_th gross profit the company 's gross profit was $ 6,333,000 or 33 % of net revenues for the year ended june 30 , 2012 , as compared to $ 8,837,000 or 38 % for the year ended june 30 , 2011. the lower gross profit is primarily due to the mix of products sold and an increase in inventory and warranty reserves . we delivered a final order to asahi of 25 cryoseal devices , at cost . inventory reserves increased primarily due to the deceleration in sales of the thermoline freezers and warranty reserves increased primarily due to the axp disposable . 33 sales and marketing expenses sales and marketing expenses were $ 2,761,000 for the year ended june 30 , 2012 , compared to $ 3,195,000 for the year ended june 30 , 2011 , a decrease of $ 434,000 or 14 % . the decrease is primarily due to a decrease in

50 our current business strategy consists of the following : continue to expand our multifamily and nonresidential loans . the additional capital raised in the stock offering increased our capacity to originate multifamily and nonresidential loans . under our current board approved loan concentration policy , such loans , including construction and land loans , shall not exceed 400 % of our total risk-based capital . most multifamily and nonresidential loans are originated with adjustable rates and , as a result , these loans are expected to change loan yields due to their shorter repricing terms compared to longer-term fixed-rate loans . community lending programs . the bank is an authorized direct lender under the small business administration ( “ sba ” ) and a community development financial institution ( “ cdfi ” ) . both of these programs , combined with our pre-existing products , bolster the bank 's commitment to continue to serve the communities that it has supported over the past sixty years . continue to increase core deposits , with an emphasis on low cost commercial demand deposits , and add non-core funding sources . deposits are the major source of balance sheet funding for lending and other investments . certificates of deposits , brokered deposits , and listing service deposits supplement the bank 's funding base . we have made significant investments in new products and services , marketing programs , personnel , branch distribution system as well as enhancing our electronic delivery solutions in an effort to become more competitive in the financial services marketplace and attract more core deposits . core deposits are our least costly source of funds and represent our best opportunity to develop customer relationships that enable us to cross-sell our enhanced products and services . manage credit risk to maintain a low level of nonperforming assets . we believe strong asset quality is a key to our long-term financial success . our strategy for credit risk management focuses on having an experienced team of credit professionals , well-defined policies and procedures , appropriate loan underwriting criteria and active credit monitoring . the majority of our non-performing assets have been related , largely , to one-to-four family residential loans and , to a lesser extent , construction and land loans . we continue to focus on our credit review function , adding both personnel and ancillary systems , in order to be able to evaluate more complex loans and better manage credit risk , to further support our intended loan growth . expand our employee base to support future growth . we have already made significant investments in our employee base . however , we will continue to work to attract and retain the necessary talent to support increased lending , deposit activities and enhanced information technology . grow organically and through opportunistic bank or acquisitions . we focus primarily on organic growth as a lower-risk means of deploying our capital . we will fund improvements in our operating facilities and customer delivery services in order to enhance our competitiveness . opportunistic acquisition and or partnership opportunities are explored if we believe they would enhance the value of our franchise and yield potential financial benefits for our stakeholders . although we believe opportunities exist to increase our market share in our current banking locations , we will not be adverse to expanding into nearby markets , enlarging our current branch network , or adding loan production offices , provided we believe such efforts would enhance our competitive standing . on july 10 , 2020 , the company completed its acquisition of 100 percent of the shares of common stock of mortgage world . non-gaap financial measures the following discussion contains certain non-gaap financial measures in addition to results presented in accordance with gaap . these non-gaap measures are intended to provide the reader with additional supplemental perspectives on operating results , performance trends , and financial condition . non-gaap financial measures are not a substitute for gaap measures ; they should be read and used in conjunction with the company 's gaap financial information . the company 's non-gaap measures may not be comparable to similar non-gaap information which may be presented by other companies . in all cases , it should be understood that non-gaap operating measures do not depict amounts that accrue directly to the benefit of shareholders . an item that management excludes when computing non-gaap adjusted earnings can be of substantial importance to the company 's results and condition for any particular year . a reconciliation of non-gaap financial measures to gaap measures is provided below . the sec has exempted from the definition of non-gaap financial measures certain commonly used financial measures that are not based on gaap . management believes that these non-gaap financial measures are useful in evaluating the company 's financial performance and facilitate comparisons with the performance of other financial institutions . however , the information should be considered supplemental in nature and not as a substitute for related financial information prepared in accordance with gaap . 51 the table below includes references to the company 's net income and earnings per share for the year s ended december 31 , 2020 and 2019 before gain on sale of real property and deduction of expenses related to termination of the company 's defined benefit pension plan ( “ defined benefit plan ” ) , respectively . in management 's view , that information , which is considered non-gaap information , may be useful to investors as it will improve comparability of core operations year over year and in future periods . the non-gaap net income amount and earnings per share reflect adjustments of the non-recurring gain on sale of real property and charges associated with termination of the de fined b enefit p lan , net of tax effect . a reconciliation of the non-gaap information to gaap net income and earnings per share is provided below . story_separator_special_tag total consolidated assets increased $ 301.4 million , or 28.6 % , to $ 1.4 billion at december 31 , 2020 from $ 1.1 billion at december 31 , 2019. the increase in total assets is attributable to increases in net loans receivable of $ 202.9 million , including $ 85.3 million in ppp loans , cash and cash equivalents of $ 44.4 million , mortgage loans held for sale , at fair value , of $ 34.4 million , other assets of $ 11.0 million , accrued interest receivable of $ 7.4 million , placements with banks of $ 2.7 million , held-to-maturity securities of $ 1.7 million , deferred taxes of $ 932,000 and fhlbny stock of $ 691,000. the increase in total assets was reduced by decreases in available-for-sale securities of $ 4.0 million and premises and equipment , net , of $ 701,000. mortgage world total assets . mortgage world 's total assets at december 31 , 2020 was $ 38.4 million , primarily consisting of mortgage loans held for sale , at fair value , of $ 34.4 million , other assets of $ 1.9 million , cash and cash equivalents of $ 1.8 million , premises and equipment , net , of $ 269,000 , and net loans receivable of $ 40,000. cash and cash equivalents . cash and cash equivalents increased $ 44.4 million , or 160.4 % , to $ 72.1 million at december 31 , 2020 , compared to $ 27.7 million at december 31 , 2019. the increase in cash and cash equivalents was primarily the result of increases of $ 247.5 million in net deposits , of which $ 43.5 million is related to net ppp funding , $ 20.8 million in advances of warehouse lines of credit related to mortgage world , $ 17.8 million in maturities and or calls of available-for-sale securities , $ 12.9 million in net advances from fhlbny and a $ 4.7 million in proceeds from the sale of real property . the increase in cash and cash equivalents was offset by increases of $ 209.4 million in net loans receivable , including $ 85.3 million in ppp loans , $ 23.8 million of mortgage loans held for sale , at fair value related to mortgage world , $ 13.6 million in purchases of available-for-sale securities , $ 4.7 million in purchases of shares held as treasury stock , $ 2.7 million in placement with banks , $ 1.9 million in purchases of premises and equipment , $ 1.7 million in held-to-maturity securities and $ 1.0 million , net of cash acquired , related to the acquisition of mortgage world . securities . the composition of securities at december 31 , 2020 and 2019 and the amounts maturing of each classification are summarized as follows : december 31 , 2020 december 31 , 2019 amortized fair amortized fair cost value cost value ( dollars in thousands ) available-for-sale securities : u.s. government and federal agency securities : amounts maturing : three months or less $ — $ — $ 2,000 $ 2,000 more than three months through one year — — 14,373 14,354 more than one year through five years — — — — more than five years through ten years — — — — — — 16,373 16,354 corporate bonds : amounts maturing : three months or less — — — — more than three months through one year — — — — more than one year through five years 2,651 2,728 — — more than five years through ten years 7,730 7,735 — — 10,381 10,463 — — mortgage-backed securities 6,970 7,035 5,162 5,150 total available-for-sale securities $ 17,351 $ 17,498 $ 21,535 $ 21,504 held-to-maturity securities : mortgage-backed securities $ 1,743 $ 1,722 $ — $ — total held-to-maturity securities $ 1,743 $ 1,722 $ — $ — 56 gross loans receivable . the composition of gross loans receivable at december 31 , 2020 and 2019 and the percentage of each classification to total loans are summarized as follows : replace_table_token_23_th * indicates more than 200 % . ( 1 ) as of december 31 , 2020 , business loans include $ 85.3 million of ppp loans . ( 2 ) as of december 31 , 2020 , consumer loans include $ 25.5 million of loans originated by the bank pursuant to its arrangement with grain . the increase in the composition of the loan portfolio was aided by $ 85.3 million related to ppp loans at december 31 , 2020 when compared to december 31 , 2019. based on current internal loan reviews , the company remains confident that the quality of our underwriting , our weighted average loan-to-value ratio of 56.1 % and our customer selection processes have served us well and provided us with a reliable base with which to maintain a well-protected loan portfolio . commercial real estate mortgage loans , as defined by applicable banking regulations , include multifamily residential , nonresidential properties , and construction and land mortgage loans . at december 31 , 2020 , approximately 7.9 % of the outstanding principal balance of the bank 's commercial real estate mortgage loans was secured by owner-occupied commercial real estate , compared to 8.0 % at december 31 , 2019. owner-occupied commercial real estate is similar in many ways to commercial and industrial lending in that these loans are generally made to businesses predominantly on the basis of the cash flows of the business rather than on cash flows and valuation of the real estate . through december 31 , 2020 , 412 loans aggregating $ 380.3 million had requested forbearance primarily consisting of the deferral of principal , interest , and escrow payments for a period of three months . of those 412 loans , 339 loans aggregating $ 306.4 million are no longer in deferment and continue performing and 73 loans in the amount of $ 73.8 million remained in deferment . of

liquidity and capital resources liquidity describes the ability to meet the financial obligations that arise in the ordinary course of business . liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of the company 's customers and to fund current and planned expenditures . the primary sources of funds are deposits , principal and interest payments on loans and available-for-sale securities and proceeds from the sale of loans . the bank also has access to borrow from the fhlbny . at december 31 , 2020 and 2019 , we had $ 117.3 million and $ 104.4 million , respectively , of term and overnight outstanding advances from the fhlbny , and also had a guarantee from the fhlbny through letters of credit of up to $ 61.5 million and $ 3.5 million , respectively . at december 31 , 2020 and 2019 , there was eligible collateral of approximately $ 336.8 million and 301.8 million , respectively , in mortgage loans available to secure advances from the fhlbny . the bank also has an unsecured line of credit of $ 25.0 million with a correspondent bank , of which there was none outstanding at december 31 , 2020 and 2019. the bank did not have any outstanding securities sold under repurchase agreements with brokers as of december 31 , 2020 and 2019. mortgage world maintains two warehouse lines of credit with financial institutions for the purpose of funding the origination and sale of residential mortgage loans , with a maximum credit line of $ 34.9 million , of which $ 30.0 million was utilized , with $ 4.9 million remaining unused , as of december 31 , 2020. although maturities and scheduled amortization of loans and available-for-sale securities are predictable sources of funds , deposit flows and loan prepayments are greatly influenced by general interest rates , economic conditions , and competition .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 describes the ability to meet the financial obligations that arise in the ordinary course of business . liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of the company 's customers and to fund current and planned expenditures . the primary sources of funds are deposits , principal and interest payments on loans and available-for-sale securities and proceeds from the sale of loans . the bank also has access to borrow from the fhlbny . at december 31 , 2020 and 2019 , we had $ 117.3 million and $ 104.4 million , respectively , of term and overnight outstanding advances from the fhlbny , and also had a guarantee from the fhlbny through letters of credit of up to $ 61.5 million and $ 3.5 million , respectively . at december 31 , 2020 and 2019 , there was eligible collateral of approximately $ 336.8 million and 301.8 million , respectively , in mortgage loans available to secure advances from the fhlbny . the bank also has an unsecured line of credit of $ 25.0 million with a correspondent bank , of which there was none outstanding at december 31 , 2020 and 2019. the bank did not have any outstanding securities sold under repurchase agreements with brokers as of december 31 , 2020 and 2019. mortgage world maintains two warehouse lines of credit with financial institutions for the purpose of funding the origination and sale of residential mortgage loans , with a maximum credit line of $ 34.9 million , of which $ 30.0 million was utilized , with $ 4.9 million remaining unused , as of december 31 , 2020. although maturities and scheduled amortization of loans and available-for-sale securities are predictable sources of funds , deposit flows and loan prepayments are greatly influenced by general interest rates , economic conditions , and competition . ``` Suspicious Activity Report : 50 our current business strategy consists of the following : continue to expand our multifamily and nonresidential loans . the additional capital raised in the stock offering increased our capacity to originate multifamily and nonresidential loans . under our current board approved loan concentration policy , such loans , including construction and land loans , shall not exceed 400 % of our total risk-based capital . most multifamily and nonresidential loans are originated with adjustable rates and , as a result , these loans are expected to change loan yields due to their shorter repricing terms compared to longer-term fixed-rate loans . community lending programs . the bank is an authorized direct lender under the small business administration ( “ sba ” ) and a community development financial institution ( “ cdfi ” ) . both of these programs , combined with our pre-existing products , bolster the bank 's commitment to continue to serve the communities that it has supported over the past sixty years . continue to increase core deposits , with an emphasis on low cost commercial demand deposits , and add non-core funding sources . deposits are the major source of balance sheet funding for lending and other investments . certificates of deposits , brokered deposits , and listing service deposits supplement the bank 's funding base . we have made significant investments in new products and services , marketing programs , personnel , branch distribution system as well as enhancing our electronic delivery solutions in an effort to become more competitive in the financial services marketplace and attract more core deposits . core deposits are our least costly source of funds and represent our best opportunity to develop customer relationships that enable us to cross-sell our enhanced products and services . manage credit risk to maintain a low level of nonperforming assets . we believe strong asset quality is a key to our long-term financial success . our strategy for credit risk management focuses on having an experienced team of credit professionals , well-defined policies and procedures , appropriate loan underwriting criteria and active credit monitoring . the majority of our non-performing assets have been related , largely , to one-to-four family residential loans and , to a lesser extent , construction and land loans . we continue to focus on our credit review function , adding both personnel and ancillary systems , in order to be able to evaluate more complex loans and better manage credit risk , to further support our intended loan growth . expand our employee base to support future growth . we have already made significant investments in our employee base . however , we will continue to work to attract and retain the necessary talent to support increased lending , deposit activities and enhanced information technology . grow organically and through opportunistic bank or acquisitions . we focus primarily on organic growth as a lower-risk means of deploying our capital . we will fund improvements in our operating facilities and customer delivery services in order to enhance our competitiveness . opportunistic acquisition and or partnership opportunities are explored if we believe they would enhance the value of our franchise and yield potential financial benefits for our stakeholders . although we believe opportunities exist to increase our market share in our current banking locations , we will not be adverse to expanding into nearby markets , enlarging our current branch network , or adding loan production offices , provided we believe such efforts would enhance our competitive standing . on july 10 , 2020 , the company completed its acquisition of 100 percent of the shares of common stock of mortgage world . non-gaap financial measures the following discussion contains certain non-gaap financial measures in addition to results presented in accordance with gaap . these non-gaap measures are intended to provide the reader with additional supplemental perspectives on operating results , performance trends , and financial condition . non-gaap financial measures are not a substitute for gaap measures ; they should be read and used in conjunction with the company 's gaap financial information . the company 's non-gaap measures may not be comparable to similar non-gaap information which may be presented by other companies . in all cases , it should be understood that non-gaap operating measures do not depict amounts that accrue directly to the benefit of shareholders . an item that management excludes when computing non-gaap adjusted earnings can be of substantial importance to the company 's results and condition for any particular year . a reconciliation of non-gaap financial measures to gaap measures is provided below . the sec has exempted from the definition of non-gaap financial measures certain commonly used financial measures that are not based on gaap . management believes that these non-gaap financial measures are useful in evaluating the company 's financial performance and facilitate comparisons with the performance of other financial institutions . however , the information should be considered supplemental in nature and not as a substitute for related financial information prepared in accordance with gaap . 51 the table below includes references to the company 's net income and earnings per share for the year s ended december 31 , 2020 and 2019 before gain on sale of real property and deduction of expenses related to termination of the company 's defined benefit pension plan ( “ defined benefit plan ” ) , respectively . in management 's view , that information , which is considered non-gaap information , may be useful to investors as it will improve comparability of core operations year over year and in future periods . the non-gaap net income amount and earnings per share reflect adjustments of the non-recurring gain on sale of real property and charges associated with termination of the de fined b enefit p lan , net of tax effect . a reconciliation of the non-gaap information to gaap net income and earnings per share is provided below . story_separator_special_tag total consolidated assets increased $ 301.4 million , or 28.6 % , to $ 1.4 billion at december 31 , 2020 from $ 1.1 billion at december 31 , 2019. the increase in total assets is attributable to increases in net loans receivable of $ 202.9 million , including $ 85.3 million in ppp loans , cash and cash equivalents of $ 44.4 million , mortgage loans held for sale , at fair value , of $ 34.4 million , other assets of $ 11.0 million , accrued interest receivable of $ 7.4 million , placements with banks of $ 2.7 million , held-to-maturity securities of $ 1.7 million , deferred taxes of $ 932,000 and fhlbny stock of $ 691,000. the increase in total assets was reduced by decreases in available-for-sale securities of $ 4.0 million and premises and equipment , net , of $ 701,000. mortgage world total assets . mortgage world 's total assets at december 31 , 2020 was $ 38.4 million , primarily consisting of mortgage loans held for sale , at fair value , of $ 34.4 million , other assets of $ 1.9 million , cash and cash equivalents of $ 1.8 million , premises and equipment , net , of $ 269,000 , and net loans receivable of $ 40,000. cash and cash equivalents . cash and cash equivalents increased $ 44.4 million , or 160.4 % , to $ 72.1 million at december 31 , 2020 , compared to $ 27.7 million at december 31 , 2019. the increase in cash and cash equivalents was primarily the result of increases of $ 247.5 million in net deposits , of which $ 43.5 million is related to net ppp funding , $ 20.8 million in advances of warehouse lines of credit related to mortgage world , $ 17.8 million in maturities and or calls of available-for-sale securities , $ 12.9 million in net advances from fhlbny and a $ 4.7 million in proceeds from the sale of real property . the increase in cash and cash equivalents was offset by increases of $ 209.4 million in net loans receivable , including $ 85.3 million in ppp loans , $ 23.8 million of mortgage loans held for sale , at fair value related to mortgage world , $ 13.6 million in purchases of available-for-sale securities , $ 4.7 million in purchases of shares held as treasury stock , $ 2.7 million in placement with banks , $ 1.9 million in purchases of premises and equipment , $ 1.7 million in held-to-maturity securities and $ 1.0 million , net of cash acquired , related to the acquisition of mortgage world . securities . the composition of securities at december 31 , 2020 and 2019 and the amounts maturing of each classification are summarized as follows : december 31 , 2020 december 31 , 2019 amortized fair amortized fair cost value cost value ( dollars in thousands ) available-for-sale securities : u.s. government and federal agency securities : amounts maturing : three months or less $ — $ — $ 2,000 $ 2,000 more than three months through one year — — 14,373 14,354 more than one year through five years — — — — more than five years through ten years — — — — — — 16,373 16,354 corporate bonds : amounts maturing : three months or less — — — — more than three months through one year — — — — more than one year through five years 2,651 2,728 — — more than five years through ten years 7,730 7,735 — — 10,381 10,463 — — mortgage-backed securities 6,970 7,035 5,162 5,150 total available-for-sale securities $ 17,351 $ 17,498 $ 21,535 $ 21,504 held-to-maturity securities : mortgage-backed securities $ 1,743 $ 1,722 $ — $ — total held-to-maturity securities $ 1,743 $ 1,722 $ — $ — 56 gross loans receivable . the composition of gross loans receivable at december 31 , 2020 and 2019 and the percentage of each classification to total loans are summarized as follows : replace_table_token_23_th * indicates more than 200 % . ( 1 ) as of december 31 , 2020 , business loans include $ 85.3 million of ppp loans . ( 2 ) as of december 31 , 2020 , consumer loans include $ 25.5 million of loans originated by the bank pursuant to its arrangement with grain . the increase in the composition of the loan portfolio was aided by $ 85.3 million related to ppp loans at december 31 , 2020 when compared to december 31 , 2019. based on current internal loan reviews , the company remains confident that the quality of our underwriting , our weighted average loan-to-value ratio of 56.1 % and our customer selection processes have served us well and provided us with a reliable base with which to maintain a well-protected loan portfolio . commercial real estate mortgage loans , as defined by applicable banking regulations , include multifamily residential , nonresidential properties , and construction and land mortgage loans . at december 31 , 2020 , approximately 7.9 % of the outstanding principal balance of the bank 's commercial real estate mortgage loans was secured by owner-occupied commercial real estate , compared to 8.0 % at december 31 , 2019. owner-occupied commercial real estate is similar in many ways to commercial and industrial lending in that these loans are generally made to businesses predominantly on the basis of the cash flows of the business rather than on cash flows and valuation of the real estate . through december 31 , 2020 , 412 loans aggregating $ 380.3 million had requested forbearance primarily consisting of the deferral of principal , interest , and escrow payments for a period of three months . of those 412 loans , 339 loans aggregating $ 306.4 million are no longer in deferment and continue performing and 73 loans in the amount of $ 73.8 million remained in deferment . of

backlog includes ( i ) unissued task orders and unexercised option years , to the extent their issuance or exercise is probable , as well as ( ii ) contract awards , to the extent we believe contract execution and funding is probable . the following table summarizes the value of our backlog at the respective dates presented ( in thousands ) : replace_table_token_10_th ( 1 ) as presented in the company 's form s-1/a filed on april 29 , 2019 , funded backlog for the federal solutions segment was overstated by $ 893.8 million with a corresponding understatement in unfunded backlog . there was no impact on total federal solutions backlog or total backlog for parsons corporation . ( 2 ) difference between our backlog of $ 8.0 billion and our rupo of $ 5.0 billion , each as of december 31 , 2019 , is due to ( i ) unissued task orders and unexercised option years , to the extent their issuance or exercise is probable , as well as ( ii ) contract awards , to the extent we believe contract execution and funding is probable . our backlog includes orders under contracts that in some cases extend for several years . for example , the u.s. congress generally appropriates funds for our u.s. federal government customers on a yearly basis , even though their contracts with us may call for performance that is expected to take a number of years to complete . as a result , our federal contracts typically are only partially funded at any point during their term . all or some of the work to be performed under the contracts may remain unfunded unless and until the u.s. congress makes subsequent appropriations and the procuring agency allocates funding to the contract . we expect to recognize $ 2.8 billion of our funded backlog at december 31 , 2019 as revenues in the following twelve months . however , our u.s. federal government customers may cancel their contracts with us at any time through a termination for convenience or may elect to not exercise option periods under such contracts . in the case of a termination for convenience , we would not receive anticipated future revenues , but would generally be permitted to recover all or a portion of our incurred costs and fees for work performed . see “ risk factors—risks relating to our business—we may not realize the full value of our backlog , which may result in lower than expected revenue . ” the changes in backlog in our federal solutions segment between fiscal 2018 and fiscal 2019 included contributions of $ 0.3 billion from business acquisitions . backlog in our critical infrastructure segment , in fiscal 2019 , was impacted primarily by a number of potential awards being pushed out to 2020. our backlog will fluctuate in any given period based on the volume of awards issued in comparison to the revenue generated from our existing contracts . 53 book-to-bill book-to-bill is the ratio of total awards to total revenue recorded in the same period . our management believes our book-to-bill ratio is a useful indicator of our potential future revenue growth in that it measures the rate at which we are generating new awards compared to the company 's current revenue . to drive future revenue growth , our goal is for the level of awards in a given period to exceed the revenue booked . a book-to-bill ratio greater than 1.0 indicates that awards generated in a given period exceeded the revenue recognized in the same period , while a book-to-bill ratio of less than 1.0 indicates that awards generated in such period were less than the revenue recognized in such period . the following table sets forth the book-to-bill ratio for the periods presented below : replace_table_token_11_th factors and trends affecting our results of operations we believe that the financial performance of our business and our future success are dependent upon many factors , including those highlighted in this section . our operating performance will depend upon many variables , including the success of our growth strategies and the timing and size of investments and expenditures that we choose to undertake , as well as market growth and other factors that are not within our control . government spending changes in the relative mix of government spending and areas of spending growth , with shifts in priorities on homeland security , intelligence , defense-related programs , infrastructure and urbanization , and continued increased spending on technology and innovation , including cybersecurity , artificial intelligence , connected communities and physical infrastructure , could impact our business and results of operations . cost-cutting and efficiency initiatives , current and future budget restrictions , spending cuts and other efforts to reduce government spending could cause our government customers to reduce or delay funding or invest appropriated funds on a less consistent basis or not at all , and demand for our solutions or services could diminish . furthermore , any disruption in the functioning of government agencies , including as a result of government closures and shutdowns , could have a negative impact on our operations and cause us to lose revenue or incur additional costs due to , among other things , our inability to deploy our staff to customer locations or facilities as a result of such disruptions . federal budget uncertainty there is uncertainty around the timing , extent , nature and effect of congressional and other u.s. government actions to address budgetary constraints , caps on the discretionary budget for defense and non-defense departments and agencies , and the ability of congress to determine how to allocate the available budget authority and pass appropriations bills to fund both u.s. government departments and agencies that are , and those that are not , subject to the caps . story_separator_special_tag indirect , general and administrative expenses fiscal year ended variance ( u.s. dollars in thousands ) december 31 , 2018 december 31 , 2019 dollar percent indirect , general and administrative expenses $ 597,410 $ 781,408 $ 183,998 30.8 % indirect , general and administrative expenses ( “ ig & a ” ) for the years ended december 31 , 2018 and december 31 , 2019 include $ 16.5 million and $ 65.7 million , respectively , of compensation cost related to equity-based awards that primarily settle in cash . cash settled awards are remeasured to an updated fair value at each reporting period until the award is settled . compensation cost is trued-up at each reporting period for changes in fair value pro-rated for the portion of the requisite service period rendered . the significant increase in compensation cost related to these cash settled equity-based awards for the year ended december 31 , 2019 is due to the significant difference in the fair value of a share of the company 's common stock under parsons esop valuation at december 31 , 2018 compared to the fair value of a share of the company 's common stock in the public market at december 31 , 2019. see item 5 of part ii for ranges in the share price of the company 's common stock since the consummation of the ipo and “ note 19— fair value of financial instruments ” in the notes to our consolidated financial statements included elsewhere in this annual report on form 10-k for a description of how the esop share value is determined . see “ note 1— description of operations ” in the notes to our consolidated financial statements included elsewhere in this annual report on form 10-k for more detail regarding the company 's ipo . the plans in which these awards were granted have been frozen and the company does not currently intend to grant any further cash settled equity-based awards . excluding the compensation costs discussed above , ig & a for the years ended december 31 , 2018 and december 31 , 2019 were $ 580.9 million and $ 715.7 million , respectively . the increase in ig & a of $ 134.8 million for the year ended december 31 , 2019 when compared to the corresponding period last year was primarily due to our federal solutions segment , most of which is related to additional expenses of $ 47.8 million from business acquisitions , $ 50.9 million from the amortization of intangible assets related to our acquisitions and $ 11.2 million in acquisition-related expenses . the remaining increase of $ 24.9 million is related to additional bid and proposal costs and an increase in corporate functional group costs . total other income ( expense ) replace_table_token_14_th 60 i nterest income is related to interest earned on cash balances held . i nterest expense is primarily due to debt related to our business acquisitions . during the year ended december 31 , 2019 , the company 's term loan of $ 150 million was paid off and the amount of debt outstanding under the company 's revolving credit facility was reduced . the amounts in other income ( expense ) , net are primarily related to transaction gains and losses on foreign currency transactions and sublease income . the amount presented in gain associated with claim on long-term contract for the year ended december 31 , 2018 relates to a lawsuit against a joint venture in which the company is the managing partner . see “ results of operations—other income and expenses ” above for a description of this matter , which was resolved in favor of the company on june 13 , 2018. income tax ( expense ) benefit fiscal year ended variance ( u.s. dollars in thousands ) december 31 , 2018 december 31 , 2019 dollar percent income tax ( expense ) benefit $ ( 20,367 ) $ 69,886 $ 90,253 443.1 % income tax expense decreased in fiscal 2019 primarily due to the revaluation of our deferred tax assets and liabilities as a result of our conversion from “ s ” corporation to a “ c ” corporation , partially offset by the impact of the increase in overall pre-tax earnings subject to taxation as a result of our conversion to a “ c ” corporation . as described in “ note 14 – income taxes , ” in the notes to our consolidated financial statements included elsewhere in this annual report on form 10-k , in connection with the company 's ipo on may 8 , 2019 , the company converted from an “ s ” corporation to a “ c ” corporation . on a pro forma basis , if the company had been taxed as a “ c ” corporation for the year ended december 31 , 2018 and december 31 , 2019 , the pro forma effective tax rate would have been 28.77 % and 36.89 % , respectively , and the company 's pro forma income tax expense would have been $ 74.8 million and $ 24.8 million , respectively . the most significant item contributing to the change in the effective tax rate relates to a change in jurisdictional earnings . the difference between the statutory u.s. federal income tax rate of 21 % and the effective tax rate for the year ended december 31 , 2019 primarily relates to foreign earnings which are subject to foreign income taxes at rates that exceed the u.s. income tax rate . the termination of the “ s ” corporation status was treated as a change in tax status for accounting standards codification 740 , income taxes . these rules require that the deferred tax effects of a change in tax status to be recorded to income from continuing operations on the date the “ s ” corporation status terminates . through the year ended december 31 , 2019 , the company recorded

cash flows cash received from customers , either from the payment of invoices for work performed or for advances in excess of revenue recognized , is our primary source of cash . we generally do not begin work on contracts until funding is appropriated by the customers . billing timetables and payment terms on our contracts vary based on a number of factors , including whether the contract type is cost-plus , time-and-materials , or fixed-price . we generally bill and collect cash more frequently under cost-plus and time-and-materials contracts , as we are authorized to bill as the costs are incurred or work is performed . in contrast , we may be limited to bill certain fixed-price contracts only when specified milestones , including deliveries , are achieved . a number of our contracts may provide for performance-based payments , which allow us to bill and collect cash prior to completing the work . billed accounts receivable represents amounts billed to clients that have not been collected . unbilled accounts receivable represents amounts where the company has a present contractual right to bill but an invoice has not been issued to the customer at the period-end date . accounts receivable is the principal component of our working capital and is generally driven by revenue growth . accounts receivable includes billed and unbilled amounts . the total amount of our accounts receivable can vary significantly over time , but is generally sensitive to revenue levels . we experience delays in collections from time to time from middle east customers . net days sales outstanding , which we refer to as net dso , is calculated by dividing ( i ) accounts receivable ( net of project accruals , billings in excess of revenue and accounts payable ) by ( ii ) average revenue per day ( calculated by dividing trailing twelve months revenue by the number of days in that period ) . we focus on collecting outstanding receivables to reduce net dso and 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 cash received from customers , either from the payment of invoices for work performed or for advances in excess of revenue recognized , is our primary source of cash . we generally do not begin work on contracts until funding is appropriated by the customers . billing timetables and payment terms on our contracts vary based on a number of factors , including whether the contract type is cost-plus , time-and-materials , or fixed-price . we generally bill and collect cash more frequently under cost-plus and time-and-materials contracts , as we are authorized to bill as the costs are incurred or work is performed . in contrast , we may be limited to bill certain fixed-price contracts only when specified milestones , including deliveries , are achieved . a number of our contracts may provide for performance-based payments , which allow us to bill and collect cash prior to completing the work . billed accounts receivable represents amounts billed to clients that have not been collected . unbilled accounts receivable represents amounts where the company has a present contractual right to bill but an invoice has not been issued to the customer at the period-end date . accounts receivable is the principal component of our working capital and is generally driven by revenue growth . accounts receivable includes billed and unbilled amounts . the total amount of our accounts receivable can vary significantly over time , but is generally sensitive to revenue levels . we experience delays in collections from time to time from middle east customers . net days sales outstanding , which we refer to as net dso , is calculated by dividing ( i ) accounts receivable ( net of project accruals , billings in excess of revenue and accounts payable ) by ( ii ) average revenue per day ( calculated by dividing trailing twelve months revenue by the number of days in that period ) . we focus on collecting outstanding receivables to reduce net dso and working capital . ``` Suspicious Activity Report : backlog includes ( i ) unissued task orders and unexercised option years , to the extent their issuance or exercise is probable , as well as ( ii ) contract awards , to the extent we believe contract execution and funding is probable . the following table summarizes the value of our backlog at the respective dates presented ( in thousands ) : replace_table_token_10_th ( 1 ) as presented in the company 's form s-1/a filed on april 29 , 2019 , funded backlog for the federal solutions segment was overstated by $ 893.8 million with a corresponding understatement in unfunded backlog . there was no impact on total federal solutions backlog or total backlog for parsons corporation . ( 2 ) difference between our backlog of $ 8.0 billion and our rupo of $ 5.0 billion , each as of december 31 , 2019 , is due to ( i ) unissued task orders and unexercised option years , to the extent their issuance or exercise is probable , as well as ( ii ) contract awards , to the extent we believe contract execution and funding is probable . our backlog includes orders under contracts that in some cases extend for several years . for example , the u.s. congress generally appropriates funds for our u.s. federal government customers on a yearly basis , even though their contracts with us may call for performance that is expected to take a number of years to complete . as a result , our federal contracts typically are only partially funded at any point during their term . all or some of the work to be performed under the contracts may remain unfunded unless and until the u.s. congress makes subsequent appropriations and the procuring agency allocates funding to the contract . we expect to recognize $ 2.8 billion of our funded backlog at december 31 , 2019 as revenues in the following twelve months . however , our u.s. federal government customers may cancel their contracts with us at any time through a termination for convenience or may elect to not exercise option periods under such contracts . in the case of a termination for convenience , we would not receive anticipated future revenues , but would generally be permitted to recover all or a portion of our incurred costs and fees for work performed . see “ risk factors—risks relating to our business—we may not realize the full value of our backlog , which may result in lower than expected revenue . ” the changes in backlog in our federal solutions segment between fiscal 2018 and fiscal 2019 included contributions of $ 0.3 billion from business acquisitions . backlog in our critical infrastructure segment , in fiscal 2019 , was impacted primarily by a number of potential awards being pushed out to 2020. our backlog will fluctuate in any given period based on the volume of awards issued in comparison to the revenue generated from our existing contracts . 53 book-to-bill book-to-bill is the ratio of total awards to total revenue recorded in the same period . our management believes our book-to-bill ratio is a useful indicator of our potential future revenue growth in that it measures the rate at which we are generating new awards compared to the company 's current revenue . to drive future revenue growth , our goal is for the level of awards in a given period to exceed the revenue booked . a book-to-bill ratio greater than 1.0 indicates that awards generated in a given period exceeded the revenue recognized in the same period , while a book-to-bill ratio of less than 1.0 indicates that awards generated in such period were less than the revenue recognized in such period . the following table sets forth the book-to-bill ratio for the periods presented below : replace_table_token_11_th factors and trends affecting our results of operations we believe that the financial performance of our business and our future success are dependent upon many factors , including those highlighted in this section . our operating performance will depend upon many variables , including the success of our growth strategies and the timing and size of investments and expenditures that we choose to undertake , as well as market growth and other factors that are not within our control . government spending changes in the relative mix of government spending and areas of spending growth , with shifts in priorities on homeland security , intelligence , defense-related programs , infrastructure and urbanization , and continued increased spending on technology and innovation , including cybersecurity , artificial intelligence , connected communities and physical infrastructure , could impact our business and results of operations . cost-cutting and efficiency initiatives , current and future budget restrictions , spending cuts and other efforts to reduce government spending could cause our government customers to reduce or delay funding or invest appropriated funds on a less consistent basis or not at all , and demand for our solutions or services could diminish . furthermore , any disruption in the functioning of government agencies , including as a result of government closures and shutdowns , could have a negative impact on our operations and cause us to lose revenue or incur additional costs due to , among other things , our inability to deploy our staff to customer locations or facilities as a result of such disruptions . federal budget uncertainty there is uncertainty around the timing , extent , nature and effect of congressional and other u.s. government actions to address budgetary constraints , caps on the discretionary budget for defense and non-defense departments and agencies , and the ability of congress to determine how to allocate the available budget authority and pass appropriations bills to fund both u.s. government departments and agencies that are , and those that are not , subject to the caps . story_separator_special_tag indirect , general and administrative expenses fiscal year ended variance ( u.s. dollars in thousands ) december 31 , 2018 december 31 , 2019 dollar percent indirect , general and administrative expenses $ 597,410 $ 781,408 $ 183,998 30.8 % indirect , general and administrative expenses ( “ ig & a ” ) for the years ended december 31 , 2018 and december 31 , 2019 include $ 16.5 million and $ 65.7 million , respectively , of compensation cost related to equity-based awards that primarily settle in cash . cash settled awards are remeasured to an updated fair value at each reporting period until the award is settled . compensation cost is trued-up at each reporting period for changes in fair value pro-rated for the portion of the requisite service period rendered . the significant increase in compensation cost related to these cash settled equity-based awards for the year ended december 31 , 2019 is due to the significant difference in the fair value of a share of the company 's common stock under parsons esop valuation at december 31 , 2018 compared to the fair value of a share of the company 's common stock in the public market at december 31 , 2019. see item 5 of part ii for ranges in the share price of the company 's common stock since the consummation of the ipo and “ note 19— fair value of financial instruments ” in the notes to our consolidated financial statements included elsewhere in this annual report on form 10-k for a description of how the esop share value is determined . see “ note 1— description of operations ” in the notes to our consolidated financial statements included elsewhere in this annual report on form 10-k for more detail regarding the company 's ipo . the plans in which these awards were granted have been frozen and the company does not currently intend to grant any further cash settled equity-based awards . excluding the compensation costs discussed above , ig & a for the years ended december 31 , 2018 and december 31 , 2019 were $ 580.9 million and $ 715.7 million , respectively . the increase in ig & a of $ 134.8 million for the year ended december 31 , 2019 when compared to the corresponding period last year was primarily due to our federal solutions segment , most of which is related to additional expenses of $ 47.8 million from business acquisitions , $ 50.9 million from the amortization of intangible assets related to our acquisitions and $ 11.2 million in acquisition-related expenses . the remaining increase of $ 24.9 million is related to additional bid and proposal costs and an increase in corporate functional group costs . total other income ( expense ) replace_table_token_14_th 60 i nterest income is related to interest earned on cash balances held . i nterest expense is primarily due to debt related to our business acquisitions . during the year ended december 31 , 2019 , the company 's term loan of $ 150 million was paid off and the amount of debt outstanding under the company 's revolving credit facility was reduced . the amounts in other income ( expense ) , net are primarily related to transaction gains and losses on foreign currency transactions and sublease income . the amount presented in gain associated with claim on long-term contract for the year ended december 31 , 2018 relates to a lawsuit against a joint venture in which the company is the managing partner . see “ results of operations—other income and expenses ” above for a description of this matter , which was resolved in favor of the company on june 13 , 2018. income tax ( expense ) benefit fiscal year ended variance ( u.s. dollars in thousands ) december 31 , 2018 december 31 , 2019 dollar percent income tax ( expense ) benefit $ ( 20,367 ) $ 69,886 $ 90,253 443.1 % income tax expense decreased in fiscal 2019 primarily due to the revaluation of our deferred tax assets and liabilities as a result of our conversion from “ s ” corporation to a “ c ” corporation , partially offset by the impact of the increase in overall pre-tax earnings subject to taxation as a result of our conversion to a “ c ” corporation . as described in “ note 14 – income taxes , ” in the notes to our consolidated financial statements included elsewhere in this annual report on form 10-k , in connection with the company 's ipo on may 8 , 2019 , the company converted from an “ s ” corporation to a “ c ” corporation . on a pro forma basis , if the company had been taxed as a “ c ” corporation for the year ended december 31 , 2018 and december 31 , 2019 , the pro forma effective tax rate would have been 28.77 % and 36.89 % , respectively , and the company 's pro forma income tax expense would have been $ 74.8 million and $ 24.8 million , respectively . the most significant item contributing to the change in the effective tax rate relates to a change in jurisdictional earnings . the difference between the statutory u.s. federal income tax rate of 21 % and the effective tax rate for the year ended december 31 , 2019 primarily relates to foreign earnings which are subject to foreign income taxes at rates that exceed the u.s. income tax rate . the termination of the “ s ” corporation status was treated as a change in tax status for accounting standards codification 740 , income taxes . these rules require that the deferred tax effects of a change in tax status to be recorded to income from continuing operations on the date the “ s ” corporation status terminates . through the year ended december 31 , 2019 , the company recorded

was partially offset by an $ 11.0 million increase in noninterest expense , a $ 3.4 million increase in provision for loan losses and a $ 2.5 million increase in income tax expense . the increase in net income of $ 3.3 million for the twelve months ended december 31 , 2019 compared to the twelve months ended december 31 , 2018 was due primarily to a $ 8.0 million increase in noninterest income , a $ 0.7 million increase in net interest income and a $ 0.1 million decrease in income tax expense , but was partially offset by a $ 3.5 million increase in noninterest expense and $ 2.1 million increase in provision for loan losses . during the twelve months ended december 31 , 2020 , return on average assets was 0.69 % , compared to 0.65 % for the twelve months ended december 31 , 2019. during the twelve months ended december 31 , 2020 , return on average shareholders ' equity was 9.39 % , compared to 8.52 % for the twelve months ended december 31 , 2019. additionally , for the 23 twelve months ended december 31 , 2020 , return on average tangible common equity was 9.53 % compared to 8.65 % for the twelve months ended december 31 , 2019. these profitability ratios improved during 2020 as net income growth of 16.7 % outpaced total average balance sheet growth of 9.6 % , as well as average shareholders ' equity growth of 5.9 % and average tangible common equity growth of 6.0 % . refer to the `` reconciliation of non-gaap financial measures `` section of item 7 of part ii of this report , management 's discussion and analysis of financial condition and results of operations for additional information . consolidated average balance sheets and net interest income analyses for the periods presented , the following tables provide the average balances of interest-earning assets and interest-bearing liabilities and the related yields and cost of funds . the tables do not reflect any effect of income taxes . balances are based on the average of daily balances . nonaccrual loans are included in average loan balances . replace_table_token_0_th 1 yield on total interest-earning assets minus cost of total interest-bearing liabilities 2 net interest income divided by average interest-earning assets 3 on a fully-taxable equivalent ( `` fte `` ) basis assuming a 21 % tax rate . refer to the `` reconciliation of non-gaap financial measures `` section of item 7 of part ii of this report , management 's discussion and analysis of financial condition and results of operations 24 rate/volume analysis the following table illustrates the impact of changes in the volume of interest-earning assets and interest-bearing liabilities and interest rates on net interest income for the periods indicated . the change in interest not due solely to volume or rate has been allocated in proportion to the absolute dollar amounts of the change in each . rate/volume analysis of net interest income twelve months ended december 31 , 2020 vs. december 31 , 2019 due to changes in twelve months ended december 31 , 2019 vs. december 31 , 2018 due to changes in ( amounts in thousands ) volume rate net volume rate net interest income loans , including loans held-for-sale $ 5,333 $ ( 6,933 ) $ ( 1,600 ) $ 21,689 $ 1,457 $ 23,146 securities – taxable 1,817 ( 4,501 ) ( 2,684 ) 2,047 1,130 3,177 securities – non-taxable ( 64 ) ( 803 ) ( 867 ) 103 ( 318 ) ( 215 ) other earning assets 2,948 ( 8,352 ) ( 5,404 ) 5,922 ( 83 ) 5,839 total 10,034 ( 20,589 ) ( 10,555 ) 29,761 2,186 31,947 interest expense interest-bearing deposits 6,245 ( 19,582 ) ( 13,337 ) 14,172 12,657 26,829 other borrowed funds 583 625 1,208 2,417 2,001 4,418 total 6,828 ( 18,957 ) ( 12,129 ) 16,589 14,658 31,247 increase ( decrease ) in net interest income $ 3,206 $ ( 1,632 ) $ 1,574 $ 13,172 $ ( 12,472 ) $ 700 2020 v. 2019 net interest income for the twelve months ended december 31 , 2020 was $ 64.5 million , an increase of $ 1.6 million , or 2.5 % , compared to $ 63.0 million for the twelve months ended december 31 , 2019. the increase in net interest income was the result of a $ 12.1 million , or 14.4 % , decrease in total interest expense to $ 72.3 million for the twelve months ended december 31 , 2020 compared to $ 84.4 million for the twelve months ended december 31 , 2019. this decrease in total interest expense was partially offset by a $ 10.6 million , or 7.2 % , decrease in total interest income to $ 136.9 million for the twelve months ended december 31 , 2020 compared to $ 147.4 million for the twelve months ended december 31 , 2019. the decrease in total interest expense was driven primarily by a decrease in interest expense related to certificates and brokered deposits and money market accounts . interest expense on certificates and brokered deposits decreased $ 11.9 million , or 21.5 % , due to a decline of 27 bps in the cost of these deposits as well as a $ 263.9 million , or 12.3 % , decrease in the average balance of these deposits . the decrease in certificates and brokered deposit balances was driven by the company 's pricing strategy to reduce the level of these higher cost deposits . the decrease in interest expense related to money market accounts of $ 1.3 million , or 10.1 % , was driven by a decline of 101 bps in the cost of these deposits , partially offset by an increase of $ 518.7 million , or 81.4 % , in the average balance of these deposits . story_separator_special_tag nonaccrual owner-occupied commercial real estate loan that paid off in full during 2020. total nonperforming assets increased $ 1.5 million , or 17.2 % , as of december 31 , 2020 compared to december 31 , 2019 , due primarily to the increase in nonperforming loans discussed above , partially offset by a $ 2.1 million write-down of a legacy commercial oreo property in 2020. the ratio of nonperforming loans to total loans increased to 0.33 % as of december 31 , 2020 compared to 0.23 % as of december 31 , 2019 and the ratio of nonperforming assets to total assets remained 0.22 % as of december 31 , 2020 , consistent with 0.22 % as of december 31 , 2019. total tdrs as of december 31 , 2020 were $ 3.0 million , up $ 2.5 million from december 31 , 2019. the increase was driven by one residential mortgage loan that became a tdr during the second quarter 2020 and one loan relationship in the owner-occupied real estate category that became a tdr during the fourth quarter 2020. as of december 31 , 2019 , the company had one commercial property in oreo with a carrying value of $ 2.1 million which was written-off during 2020. the property consisted of two buildings that were residential units adjacent to a university campus . the company did not have any oreo as of december 31 , 2020. as of december 31 , 2020 , our financial results have reflected little impact on asset quality to date as a result of covid-19 . however , the ultimate impact the pandemic may have on our business and asset quality is still uncertain . we remain optimistic that the combination of government stimulus programs and the relief programs we have provided to our clients will lessen the economic stress on our borrowers . however , if the effects of the pandemic extend for a prolonged period of time , we may experience negative trends in nonperforming loans and assets . non-tdr loan modifications due to covid-19 the “ interagency statement on loan modifications and reporting for financial institutions working with customers affected by the coronavirus ” was issued by our banking regulators on march 22 , 2020. this guidance encourages financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations due to the effects of covid-19 . additionally , section 4013 of the cares act further provides that loan modifications due to the impact of covid-19 that would otherwise be classified as tdrs under gaap will not be so classified . modifications within the scope of this relief are in effect from the period beginning march 1 , 2020 until january 1 , 2022 , or 60 days after the date on which the national emergency related to the covid-19 pandemic formally terminates . in accordance with this guidance , the company offered modifications to borrowers who were both impacted by covid-19 and current on all principal and interest payments . as of december 31 , 2020 , the company had $ 11.9 million in non-tdr loan modifications due to covid-19 . u.s. small business administration paycheck protection program section 1102 of the cares act created the ppp , which is jointly administered by the sba and the department of the treasury . the ppp is designed to provide economic relief to small businesses nationwide adversely impacted by covid-19 . on december 27 , 2020 , the economic aid to hard-hit small businesses , nonprofits , and venues act was enacted , extending the authority to continue to make ppp loans , including a provision for second draw ppp loans , through march 31 , 2021. these loans may be 100 % forgiven if certain conditions , including predefined sba approved use of the funds and certain borrower certifications are satisfied and are fully guaranteed by the sba . as a preferred sba lender , we assisted our clients in 33 participating in the ppp to help them maintain their workforces in an uncertain and challenging environment . the loans originated by us during 2020 bear an interest rate of 1.00 % and we received weighted average origination fees of 3.86 % of the amount funded , or approximately $ 2.3 million in total . the company received this fee revenue from the sba in late june 2020 and it is being deferred over the life of the ppp loans and recognized as interest income . as of december 31 , 2020 , we had 376 ppp loans totaling $ 50.6 million outstanding . as of december 31 , 2020 , the company processed 84 applications for forgiveness from ppp borrowers . on december 27 , 2020 , additional funding was allocated to the ppp through the passage of the economic aid to hard-hit small businesses , nonprofits and venues act . the additional funding can be used by small businesses who have yet to receive a ppp loan as well as certain small businesses who may be eligible to receive a second ppp loan . the company began offering ppp loans again in the first quarter of 2021. the company anticipates that the majority of ppp loans it originates will ultimately be forgiven , in whole or in part , by the sba in accordance with the terms of the program . management anticipates that loan forgiveness applications will continue during 2021. allowance for loan losses replace_table_token_10_th the determination of the allowance for loan losses and the related provision for loan losses are components of our significant accounting policies as discussed within note 1 to the company 's consolidated financial statements . the adequacy of the allowance for loan losses and the provision are based on the review and evaluation of the loan portfolio and reflect management 's assessment of the risks and potential losses within the portfolio . this evaluation considers historical loss experience as well as qualitative factors such as

liquidity and capital resources the company believes it has sufficient liquidity and capital resources to meet its cash and capital expenditure requirements for at least the next twelve months . the company may explore strategic alternatives , including additional asset , deposit or revenue generation channels that complement our commercial and consumer banking platforms , which may require 38 additional capital . if the company is unable to secure such capital at favorable terms , its ability to take advantage of such opportunities could be adversely affected . liquidity management is the process used by the company to manage the continuing flow of funds necessary to meet its financial commitments on a timely basis and at a reasonable cost while also maintaining safe and sound operations . liquidity , represented by cash and investment securities , is a product of the company 's operating , investing and financing activities . the primary sources of funds are deposits , principal and interest payments on loans and investment securities , maturing loans and investment securities , access to wholesale funding sources and collateralized borrowings . while scheduled payments and maturities of loans and investment securities are relatively predictable sources of funds , deposit flows are greatly influenced by interest rates , general economic conditions and competition . therefore , the company supplements deposit growth and enhances interest rate risk management through borrowings and wholesale funding , which are generally advances from the fhlb and brokered deposits . additionally , the company has enhanced its liquidity management process through increased loan sale activity . during 2020 , the company sold $ 188.6 million of public finance , single tenant lease financing and sba 7 ( a ) guaranteed loans at premiums to book value , as well as a $ 90.8 million pool of residential mortgage loans . during 2019 , the company sold $ 237.5 million of portfolio residential mortgage , single tenant lease financing and public finance loans . these loan sales have provided liquidity to manage overall loan portfolio growth and capital utilization . the company holds cash and investment securities that qualify as liquid assets to maintain adequate liquidity to ensure safe and sound operations and meet its financial commitments .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 believes it has sufficient liquidity and capital resources to meet its cash and capital expenditure requirements for at least the next twelve months . the company may explore strategic alternatives , including additional asset , deposit or revenue generation channels that complement our commercial and consumer banking platforms , which may require 38 additional capital . if the company is unable to secure such capital at favorable terms , its ability to take advantage of such opportunities could be adversely affected . liquidity management is the process used by the company to manage the continuing flow of funds necessary to meet its financial commitments on a timely basis and at a reasonable cost while also maintaining safe and sound operations . liquidity , represented by cash and investment securities , is a product of the company 's operating , investing and financing activities . the primary sources of funds are deposits , principal and interest payments on loans and investment securities , maturing loans and investment securities , access to wholesale funding sources and collateralized borrowings . while scheduled payments and maturities of loans and investment securities are relatively predictable sources of funds , deposit flows are greatly influenced by interest rates , general economic conditions and competition . therefore , the company supplements deposit growth and enhances interest rate risk management through borrowings and wholesale funding , which are generally advances from the fhlb and brokered deposits . additionally , the company has enhanced its liquidity management process through increased loan sale activity . during 2020 , the company sold $ 188.6 million of public finance , single tenant lease financing and sba 7 ( a ) guaranteed loans at premiums to book value , as well as a $ 90.8 million pool of residential mortgage loans . during 2019 , the company sold $ 237.5 million of portfolio residential mortgage , single tenant lease financing and public finance loans . these loan sales have provided liquidity to manage overall loan portfolio growth and capital utilization . the company holds cash and investment securities that qualify as liquid assets to maintain adequate liquidity to ensure safe and sound operations and meet its financial commitments . ``` Suspicious Activity Report : was partially offset by an $ 11.0 million increase in noninterest expense , a $ 3.4 million increase in provision for loan losses and a $ 2.5 million increase in income tax expense . the increase in net income of $ 3.3 million for the twelve months ended december 31 , 2019 compared to the twelve months ended december 31 , 2018 was due primarily to a $ 8.0 million increase in noninterest income , a $ 0.7 million increase in net interest income and a $ 0.1 million decrease in income tax expense , but was partially offset by a $ 3.5 million increase in noninterest expense and $ 2.1 million increase in provision for loan losses . during the twelve months ended december 31 , 2020 , return on average assets was 0.69 % , compared to 0.65 % for the twelve months ended december 31 , 2019. during the twelve months ended december 31 , 2020 , return on average shareholders ' equity was 9.39 % , compared to 8.52 % for the twelve months ended december 31 , 2019. additionally , for the 23 twelve months ended december 31 , 2020 , return on average tangible common equity was 9.53 % compared to 8.65 % for the twelve months ended december 31 , 2019. these profitability ratios improved during 2020 as net income growth of 16.7 % outpaced total average balance sheet growth of 9.6 % , as well as average shareholders ' equity growth of 5.9 % and average tangible common equity growth of 6.0 % . refer to the `` reconciliation of non-gaap financial measures `` section of item 7 of part ii of this report , management 's discussion and analysis of financial condition and results of operations for additional information . consolidated average balance sheets and net interest income analyses for the periods presented , the following tables provide the average balances of interest-earning assets and interest-bearing liabilities and the related yields and cost of funds . the tables do not reflect any effect of income taxes . balances are based on the average of daily balances . nonaccrual loans are included in average loan balances . replace_table_token_0_th 1 yield on total interest-earning assets minus cost of total interest-bearing liabilities 2 net interest income divided by average interest-earning assets 3 on a fully-taxable equivalent ( `` fte `` ) basis assuming a 21 % tax rate . refer to the `` reconciliation of non-gaap financial measures `` section of item 7 of part ii of this report , management 's discussion and analysis of financial condition and results of operations 24 rate/volume analysis the following table illustrates the impact of changes in the volume of interest-earning assets and interest-bearing liabilities and interest rates on net interest income for the periods indicated . the change in interest not due solely to volume or rate has been allocated in proportion to the absolute dollar amounts of the change in each . rate/volume analysis of net interest income twelve months ended december 31 , 2020 vs. december 31 , 2019 due to changes in twelve months ended december 31 , 2019 vs. december 31 , 2018 due to changes in ( amounts in thousands ) volume rate net volume rate net interest income loans , including loans held-for-sale $ 5,333 $ ( 6,933 ) $ ( 1,600 ) $ 21,689 $ 1,457 $ 23,146 securities – taxable 1,817 ( 4,501 ) ( 2,684 ) 2,047 1,130 3,177 securities – non-taxable ( 64 ) ( 803 ) ( 867 ) 103 ( 318 ) ( 215 ) other earning assets 2,948 ( 8,352 ) ( 5,404 ) 5,922 ( 83 ) 5,839 total 10,034 ( 20,589 ) ( 10,555 ) 29,761 2,186 31,947 interest expense interest-bearing deposits 6,245 ( 19,582 ) ( 13,337 ) 14,172 12,657 26,829 other borrowed funds 583 625 1,208 2,417 2,001 4,418 total 6,828 ( 18,957 ) ( 12,129 ) 16,589 14,658 31,247 increase ( decrease ) in net interest income $ 3,206 $ ( 1,632 ) $ 1,574 $ 13,172 $ ( 12,472 ) $ 700 2020 v. 2019 net interest income for the twelve months ended december 31 , 2020 was $ 64.5 million , an increase of $ 1.6 million , or 2.5 % , compared to $ 63.0 million for the twelve months ended december 31 , 2019. the increase in net interest income was the result of a $ 12.1 million , or 14.4 % , decrease in total interest expense to $ 72.3 million for the twelve months ended december 31 , 2020 compared to $ 84.4 million for the twelve months ended december 31 , 2019. this decrease in total interest expense was partially offset by a $ 10.6 million , or 7.2 % , decrease in total interest income to $ 136.9 million for the twelve months ended december 31 , 2020 compared to $ 147.4 million for the twelve months ended december 31 , 2019. the decrease in total interest expense was driven primarily by a decrease in interest expense related to certificates and brokered deposits and money market accounts . interest expense on certificates and brokered deposits decreased $ 11.9 million , or 21.5 % , due to a decline of 27 bps in the cost of these deposits as well as a $ 263.9 million , or 12.3 % , decrease in the average balance of these deposits . the decrease in certificates and brokered deposit balances was driven by the company 's pricing strategy to reduce the level of these higher cost deposits . the decrease in interest expense related to money market accounts of $ 1.3 million , or 10.1 % , was driven by a decline of 101 bps in the cost of these deposits , partially offset by an increase of $ 518.7 million , or 81.4 % , in the average balance of these deposits . story_separator_special_tag nonaccrual owner-occupied commercial real estate loan that paid off in full during 2020. total nonperforming assets increased $ 1.5 million , or 17.2 % , as of december 31 , 2020 compared to december 31 , 2019 , due primarily to the increase in nonperforming loans discussed above , partially offset by a $ 2.1 million write-down of a legacy commercial oreo property in 2020. the ratio of nonperforming loans to total loans increased to 0.33 % as of december 31 , 2020 compared to 0.23 % as of december 31 , 2019 and the ratio of nonperforming assets to total assets remained 0.22 % as of december 31 , 2020 , consistent with 0.22 % as of december 31 , 2019. total tdrs as of december 31 , 2020 were $ 3.0 million , up $ 2.5 million from december 31 , 2019. the increase was driven by one residential mortgage loan that became a tdr during the second quarter 2020 and one loan relationship in the owner-occupied real estate category that became a tdr during the fourth quarter 2020. as of december 31 , 2019 , the company had one commercial property in oreo with a carrying value of $ 2.1 million which was written-off during 2020. the property consisted of two buildings that were residential units adjacent to a university campus . the company did not have any oreo as of december 31 , 2020. as of december 31 , 2020 , our financial results have reflected little impact on asset quality to date as a result of covid-19 . however , the ultimate impact the pandemic may have on our business and asset quality is still uncertain . we remain optimistic that the combination of government stimulus programs and the relief programs we have provided to our clients will lessen the economic stress on our borrowers . however , if the effects of the pandemic extend for a prolonged period of time , we may experience negative trends in nonperforming loans and assets . non-tdr loan modifications due to covid-19 the “ interagency statement on loan modifications and reporting for financial institutions working with customers affected by the coronavirus ” was issued by our banking regulators on march 22 , 2020. this guidance encourages financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations due to the effects of covid-19 . additionally , section 4013 of the cares act further provides that loan modifications due to the impact of covid-19 that would otherwise be classified as tdrs under gaap will not be so classified . modifications within the scope of this relief are in effect from the period beginning march 1 , 2020 until january 1 , 2022 , or 60 days after the date on which the national emergency related to the covid-19 pandemic formally terminates . in accordance with this guidance , the company offered modifications to borrowers who were both impacted by covid-19 and current on all principal and interest payments . as of december 31 , 2020 , the company had $ 11.9 million in non-tdr loan modifications due to covid-19 . u.s. small business administration paycheck protection program section 1102 of the cares act created the ppp , which is jointly administered by the sba and the department of the treasury . the ppp is designed to provide economic relief to small businesses nationwide adversely impacted by covid-19 . on december 27 , 2020 , the economic aid to hard-hit small businesses , nonprofits , and venues act was enacted , extending the authority to continue to make ppp loans , including a provision for second draw ppp loans , through march 31 , 2021. these loans may be 100 % forgiven if certain conditions , including predefined sba approved use of the funds and certain borrower certifications are satisfied and are fully guaranteed by the sba . as a preferred sba lender , we assisted our clients in 33 participating in the ppp to help them maintain their workforces in an uncertain and challenging environment . the loans originated by us during 2020 bear an interest rate of 1.00 % and we received weighted average origination fees of 3.86 % of the amount funded , or approximately $ 2.3 million in total . the company received this fee revenue from the sba in late june 2020 and it is being deferred over the life of the ppp loans and recognized as interest income . as of december 31 , 2020 , we had 376 ppp loans totaling $ 50.6 million outstanding . as of december 31 , 2020 , the company processed 84 applications for forgiveness from ppp borrowers . on december 27 , 2020 , additional funding was allocated to the ppp through the passage of the economic aid to hard-hit small businesses , nonprofits and venues act . the additional funding can be used by small businesses who have yet to receive a ppp loan as well as certain small businesses who may be eligible to receive a second ppp loan . the company began offering ppp loans again in the first quarter of 2021. the company anticipates that the majority of ppp loans it originates will ultimately be forgiven , in whole or in part , by the sba in accordance with the terms of the program . management anticipates that loan forgiveness applications will continue during 2021. allowance for loan losses replace_table_token_10_th the determination of the allowance for loan losses and the related provision for loan losses are components of our significant accounting policies as discussed within note 1 to the company 's consolidated financial statements . the adequacy of the allowance for loan losses and the provision are based on the review and evaluation of the loan portfolio and reflect management 's assessment of the risks and potential losses within the portfolio . this evaluation considers historical loss experience as well as qualitative factors such as

based on our historical experience , calculating the contractual allowance reserve percentage at the payor level is sufficient to allow us to provide the necessary detail and accuracy with our collectibility estimates . however , the services authorized and provided and related reimbursement are subject to interpretation that could result in payments that differ from our estimates . payor terms are periodically revised necessitating continual review and assessment of the estimates made by management . our billing system may not capture the exact change in our contractual allowance reserve estimate from period to period . therefore , in order to assess the accuracy of our revenues and hence our contractual allowance reserves , our management regularly compares its cash collections to corresponding net revenues measured both in the aggregate and on a clinic-by-clinic basis . in the aggregate , the historical difference between net revenues and corresponding cash collections has generally reflected a difference within approximately 1 % of net revenues . additionally , analysis of subsequent period 's contractual write-offs on a payor basis reflects a difference within approximately 1 % between the actual aggregate contractual reserve percentage as compared to the estimated contractual allowance reserve percentage associated with the same period end balance . as a result , we believe that a reasonable likely change in the contractual allowance reserve estimate would not be more than 1 % at december 31 , 2014. for purposes of demonstrating the sensitivity of this estimate on the company 's financial condition , a one percent increase or decrease in our aggregate contractual allowance reserve percentage would decrease or increase , respectively , net patient revenue by approximately $ 798,000 for the year ended december 31 , 2014. management believes the changes in the estimate of the contractual allowance reserve for the periods ended december 31 , 2014 , 2013 and 2012 have not been material to the statement of operations . the following table sets forth information regarding our patient accounts receivable as of the dates indicated ( in thousands ) : replace_table_token_8_th 23 the following table presents our patient accounts receivable aging by payor class as of the dates indicated ( in thousands ) : replace_table_token_9_th * workers compensation is paid by state administrators or their designated agents . * * other includes primarily litigation claims and , to a lesser extent , vehicular insurance claims . reimbursement for medicare beneficiaries is based upon a fee schedule published by hhs . for a more complete description of our third party revenue sources , see “ business—sources of revenue ” in item 1. provision for doubtful accounts . we determine our provision for doubtful accounts based on the specific agings and payor classifications at each clinic . we review the accounts receivable aging and rely on prior experience with particular payors to determine an appropriate reserve for doubtful accounts . historically , clinics that have a large number of aged accounts generally have less favorable collection experience , and thus , require a higher allowance . accounts that are ultimately determined to be uncollectible are written off against our bad debt allowance . the amount of our aggregate allowance for doubtful accounts is regularly reviewed for adequacy in light of current and historical experience . accounting for income taxes . we account for income taxes under the asset and liability method . deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards . deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which 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 income in the period that includes the enactment date . the company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit . for tax positions meeting the more-likely-than-not threshold , the amount to be recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority . we do not believe that we have any significant uncertain tax positions at december 31 , 2014 , nor is this expected to change within the next twelve months due to the settlement and expiration of statutes of limitation . we did not have any accrued interest or penalties associated with any unrecognized tax benefits nor was any interest expense recognized during the twelve months ended december 31 , 2014 and 2013. carrying value of long-lived assets . our property and equipment , intangible assets and goodwill ( collectively , our “ long-lived assets ” ) comprise a significant portion of our total assets . the accounting standards require that we periodically , and upon the occurrence of certain events , assess the recoverability of our long-lived assets . if the carrying value of our property and equipment exceeds their undiscounted cash flows , we are required to write the carrying value down to estimated fair value . goodwill . the fair value of goodwill and other intangible assets with indefinite lives are tested for impairment annually and upon the occurrence of certain events , and are written down to fair value if considered impaired . we evaluate goodwill for impairment on at least an annual basis ( in the third quarter ) by comparing the fair value of its reporting units to the carrying value of each reporting unit including related goodwill . we operate a one segment business which is made up of various clinics within partnerships . story_separator_special_tag at december 31 , 2013 , $ 40.0 million was outstanding under our credit agreement ; however , $ 36.0 million was drawn on december 13 , 2013 resulting in a minimal effect on interest expense and average borrowings for 2013. see “ liquidity and capital resources ” below for a discussion of the terms of our credit agreement . 28 provision for income taxes the provision for income taxes was $ 12.2 million for 2013 and $ 11.2 million for 2013. for 2013 , we accrued state and federal income taxes at an effective tax rate ( provision for taxes divided by the difference between income from operations and net income attributable to non-controlling interest ) of 41.1 % . for 2013 , the provision for income taxes for the 2013 period includes an adjustment of $ 393,000 related to the true-up of our 2012 tax provision based on a detailed reconciliation of our federal and state taxes payable and receivable accounts along with our federal and state deferred tax asset and liability accounts . the provision for income taxes as a percentage of income before taxes less net income attributable to non-controlling interests is 40 % for 2013. in 2012 , the income tax provision was reduced by $ 350,000 related to a taxable deduction charged to additional-paid-in-capital for the reduction of a subsidiary intercompany loan and included a charge of $ 162,000 for a true-up of our 2011 tax provision . net income attributable to non-controlling interests net income attributable to non-controlling interests was $ 8.5 million in 2013 and $ 8.4 million in 2012. as a percentage of operating income before corporate office costs , net income attributable to non-controlling interests was 13.2 % in 2013 compared to 13.4 % in 2012. the reduction is attributable to the company 's increased ownership interest in certain physical therapy partnerships . story_separator_special_tag financing . any large acquisition would likely require financing . we make reasonable and appropriate efforts to collect accounts receivable , including applicable deductible and co-payment amounts . claims are submitted to payors daily , weekly or monthly in accordance with our policy or payor 's requirements . when possible , we submit our claims electronically . the collection process is time consuming and typically involves the submission of claims to multiple payors whose payment of claims may be dependent upon the payment of another payor . claims under litigation and vehicular incidents can take a year or longer to collect . medicare and other payor claims relating to new clinics awaiting medicare rehab agency status approval initially may not be submitted for six months or more . when all reasonable internal collection efforts have been exhausted , accounts are written off prior to sending them to outside collection firms . with managed care , commercial health plans and self-pay payor type receivables , the write-off generally occurs after the account receivable has been outstanding for 120 days or longer . we have future obligations for debt repayments , employment agreements and future minimum rentals under operating leases . the obligations as of december 31 , 2014 are summarized as follows ( in thousands ) : replace_table_token_11_th we generally enter into various notes payable as a means of financing our acquisitions . our present outstanding notes payable relate only to certain of the acquisitions of businesses and non-controlling interests that occurred in 2014 and 2013. for those acquisitions , we entered into several notes payables aggregating $ 1.8 million . the notes are payable in equal annual installments of principal over two years plus any accrued and unpaid interest . interest accrues at various interest rates ranging from 3.25 % to 4.0 % per annum , subject to adjustment . in addition , we assumed leases with remaining terms of 1 month to 6 years for the operating facilities . at december 31 , 2014 , the balance on these notes payable was $ 1.1 million . in conjunction with the above mentioned acquisitions , in the event that a limited minority partner 's employment ceases at any time after three or four years from the acquisition date , as applicable , we have agreed to repurchase that individual 's non-controlling interest at a predetermined multiple of earnings before interest and taxes . as of december 31 , 2014 , we have accrued $ 1.8 million related to credit balances and overpayments due to patients and payors . this amount is expected to be paid in 2015 . 30 from september 2001 through december 31 , 2008 , the board authorized us to purchase , in the open market or in privately negotiated transactions , up to 2,250,000 shares of our common stock . in march 2009 , the board authorized the repurchase of up to 10 % or approximately 1,200,000 shares of our common stock ( “ march 2009 authorization ” ) . in connection with the march 2009 authorization , we amended our prior credit agreement to permit share repurchases of up to $ 15,000,000. we are required to retire shares purchased under the march 2009 authorization . under the march 2009 authorization , we have purchased a total of 859,499 shares . there is no expiration date for the share repurchase program . the credit agreement permits the company to purchase , commencing on october 24 , 2012 and at all times thereafter , up to $ 15,000,000 of its common stock subject to compliance with covenants . there are currently an additional estimated 340,501 shares that may be purchased from time to time in the open market or private transactions depending on price , availability and our cash position . we did not purchase any shares of our common stock during 2013 or 2014. off balance sheet arrangements with the exception of operating leases for our executive offices and clinic facilities discussed in note 14 to our consolidated financial statements included in item 8 , we have no off-balance sheet debt or

liquidity and capital resources we believe that our business is generating sufficient cash flow from operating activities to allow us to meet our short-term and long-term cash requirements , other than those with respect to future significant acquisitions . at december 31 , 2014 , we had $ 14.3 million in cash and cash equivalents compared to $ 12.9 million at december 31 , 2013. although the start-up costs associated with opening new clinics and our planned capital expenditures are significant , we believe that our cash and cash equivalents and availability under our revolving credit facility are sufficient to fund the working capital needs of our operating subsidiaries , future clinic development and acquisitions and investments through at least december 2015. the amount outstanding under our credit agreement was $ 34.5 million at december 31 , 2014 compared to $ 40.0 million at december 31 , 2013. at december 31 , 2014 , we had $ 90.5 million available under our credit agreement . significant acquisitions would likely require financing under our credit agreement . the increase in cash and cash equivalents of $ 1.4 million from december 31 , 2013 to december 31 , 2014 was due primarily to $ 45.2 million provided by operations and $ 0.9 million from the tax benefit of equity compensation transactions . the major uses of cash for investing and financing activities included : purchase of businesses ( $ 12.3 million ) , distributions to non-controlling interests ( $ 9.9 million ) , payments of cash dividends to our shareholders ( $ 5.9 million ) , net reduction of balance under our credit agreement ( $ 5.5 million ) , acquisitions of non-controlling interests ( $ 5.5 million ) , purchases of fixed assets ( $ 5.2 million ) , and payments on notes payable ( $ 0.8 million ) . effective december 5 , 2013 , we entered into an amended and restated credit agreement with a commitment for a $ 125.0 million revolving credit facility with a maturity date of november 30 , 2018 ( “ 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. ```liquidity and capital resources we believe that our business is generating sufficient cash flow from operating activities to allow us to meet our short-term and long-term cash requirements , other than those with respect to future significant acquisitions . at december 31 , 2014 , we had $ 14.3 million in cash and cash equivalents compared to $ 12.9 million at december 31 , 2013. although the start-up costs associated with opening new clinics and our planned capital expenditures are significant , we believe that our cash and cash equivalents and availability under our revolving credit facility are sufficient to fund the working capital needs of our operating subsidiaries , future clinic development and acquisitions and investments through at least december 2015. the amount outstanding under our credit agreement was $ 34.5 million at december 31 , 2014 compared to $ 40.0 million at december 31 , 2013. at december 31 , 2014 , we had $ 90.5 million available under our credit agreement . significant acquisitions would likely require financing under our credit agreement . the increase in cash and cash equivalents of $ 1.4 million from december 31 , 2013 to december 31 , 2014 was due primarily to $ 45.2 million provided by operations and $ 0.9 million from the tax benefit of equity compensation transactions . the major uses of cash for investing and financing activities included : purchase of businesses ( $ 12.3 million ) , distributions to non-controlling interests ( $ 9.9 million ) , payments of cash dividends to our shareholders ( $ 5.9 million ) , net reduction of balance under our credit agreement ( $ 5.5 million ) , acquisitions of non-controlling interests ( $ 5.5 million ) , purchases of fixed assets ( $ 5.2 million ) , and payments on notes payable ( $ 0.8 million ) . effective december 5 , 2013 , we entered into an amended and restated credit agreement with a commitment for a $ 125.0 million revolving credit facility with a maturity date of november 30 , 2018 ( “ credit agreement ” ) . ``` Suspicious Activity Report : based on our historical experience , calculating the contractual allowance reserve percentage at the payor level is sufficient to allow us to provide the necessary detail and accuracy with our collectibility estimates . however , the services authorized and provided and related reimbursement are subject to interpretation that could result in payments that differ from our estimates . payor terms are periodically revised necessitating continual review and assessment of the estimates made by management . our billing system may not capture the exact change in our contractual allowance reserve estimate from period to period . therefore , in order to assess the accuracy of our revenues and hence our contractual allowance reserves , our management regularly compares its cash collections to corresponding net revenues measured both in the aggregate and on a clinic-by-clinic basis . in the aggregate , the historical difference between net revenues and corresponding cash collections has generally reflected a difference within approximately 1 % of net revenues . additionally , analysis of subsequent period 's contractual write-offs on a payor basis reflects a difference within approximately 1 % between the actual aggregate contractual reserve percentage as compared to the estimated contractual allowance reserve percentage associated with the same period end balance . as a result , we believe that a reasonable likely change in the contractual allowance reserve estimate would not be more than 1 % at december 31 , 2014. for purposes of demonstrating the sensitivity of this estimate on the company 's financial condition , a one percent increase or decrease in our aggregate contractual allowance reserve percentage would decrease or increase , respectively , net patient revenue by approximately $ 798,000 for the year ended december 31 , 2014. management believes the changes in the estimate of the contractual allowance reserve for the periods ended december 31 , 2014 , 2013 and 2012 have not been material to the statement of operations . the following table sets forth information regarding our patient accounts receivable as of the dates indicated ( in thousands ) : replace_table_token_8_th 23 the following table presents our patient accounts receivable aging by payor class as of the dates indicated ( in thousands ) : replace_table_token_9_th * workers compensation is paid by state administrators or their designated agents . * * other includes primarily litigation claims and , to a lesser extent , vehicular insurance claims . reimbursement for medicare beneficiaries is based upon a fee schedule published by hhs . for a more complete description of our third party revenue sources , see “ business—sources of revenue ” in item 1. provision for doubtful accounts . we determine our provision for doubtful accounts based on the specific agings and payor classifications at each clinic . we review the accounts receivable aging and rely on prior experience with particular payors to determine an appropriate reserve for doubtful accounts . historically , clinics that have a large number of aged accounts generally have less favorable collection experience , and thus , require a higher allowance . accounts that are ultimately determined to be uncollectible are written off against our bad debt allowance . the amount of our aggregate allowance for doubtful accounts is regularly reviewed for adequacy in light of current and historical experience . accounting for income taxes . we account for income taxes under the asset and liability method . deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards . deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which 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 income in the period that includes the enactment date . the company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit . for tax positions meeting the more-likely-than-not threshold , the amount to be recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority . we do not believe that we have any significant uncertain tax positions at december 31 , 2014 , nor is this expected to change within the next twelve months due to the settlement and expiration of statutes of limitation . we did not have any accrued interest or penalties associated with any unrecognized tax benefits nor was any interest expense recognized during the twelve months ended december 31 , 2014 and 2013. carrying value of long-lived assets . our property and equipment , intangible assets and goodwill ( collectively , our “ long-lived assets ” ) comprise a significant portion of our total assets . the accounting standards require that we periodically , and upon the occurrence of certain events , assess the recoverability of our long-lived assets . if the carrying value of our property and equipment exceeds their undiscounted cash flows , we are required to write the carrying value down to estimated fair value . goodwill . the fair value of goodwill and other intangible assets with indefinite lives are tested for impairment annually and upon the occurrence of certain events , and are written down to fair value if considered impaired . we evaluate goodwill for impairment on at least an annual basis ( in the third quarter ) by comparing the fair value of its reporting units to the carrying value of each reporting unit including related goodwill . we operate a one segment business which is made up of various clinics within partnerships . story_separator_special_tag at december 31 , 2013 , $ 40.0 million was outstanding under our credit agreement ; however , $ 36.0 million was drawn on december 13 , 2013 resulting in a minimal effect on interest expense and average borrowings for 2013. see “ liquidity and capital resources ” below for a discussion of the terms of our credit agreement . 28 provision for income taxes the provision for income taxes was $ 12.2 million for 2013 and $ 11.2 million for 2013. for 2013 , we accrued state and federal income taxes at an effective tax rate ( provision for taxes divided by the difference between income from operations and net income attributable to non-controlling interest ) of 41.1 % . for 2013 , the provision for income taxes for the 2013 period includes an adjustment of $ 393,000 related to the true-up of our 2012 tax provision based on a detailed reconciliation of our federal and state taxes payable and receivable accounts along with our federal and state deferred tax asset and liability accounts . the provision for income taxes as a percentage of income before taxes less net income attributable to non-controlling interests is 40 % for 2013. in 2012 , the income tax provision was reduced by $ 350,000 related to a taxable deduction charged to additional-paid-in-capital for the reduction of a subsidiary intercompany loan and included a charge of $ 162,000 for a true-up of our 2011 tax provision . net income attributable to non-controlling interests net income attributable to non-controlling interests was $ 8.5 million in 2013 and $ 8.4 million in 2012. as a percentage of operating income before corporate office costs , net income attributable to non-controlling interests was 13.2 % in 2013 compared to 13.4 % in 2012. the reduction is attributable to the company 's increased ownership interest in certain physical therapy partnerships . story_separator_special_tag financing . any large acquisition would likely require financing . we make reasonable and appropriate efforts to collect accounts receivable , including applicable deductible and co-payment amounts . claims are submitted to payors daily , weekly or monthly in accordance with our policy or payor 's requirements . when possible , we submit our claims electronically . the collection process is time consuming and typically involves the submission of claims to multiple payors whose payment of claims may be dependent upon the payment of another payor . claims under litigation and vehicular incidents can take a year or longer to collect . medicare and other payor claims relating to new clinics awaiting medicare rehab agency status approval initially may not be submitted for six months or more . when all reasonable internal collection efforts have been exhausted , accounts are written off prior to sending them to outside collection firms . with managed care , commercial health plans and self-pay payor type receivables , the write-off generally occurs after the account receivable has been outstanding for 120 days or longer . we have future obligations for debt repayments , employment agreements and future minimum rentals under operating leases . the obligations as of december 31 , 2014 are summarized as follows ( in thousands ) : replace_table_token_11_th we generally enter into various notes payable as a means of financing our acquisitions . our present outstanding notes payable relate only to certain of the acquisitions of businesses and non-controlling interests that occurred in 2014 and 2013. for those acquisitions , we entered into several notes payables aggregating $ 1.8 million . the notes are payable in equal annual installments of principal over two years plus any accrued and unpaid interest . interest accrues at various interest rates ranging from 3.25 % to 4.0 % per annum , subject to adjustment . in addition , we assumed leases with remaining terms of 1 month to 6 years for the operating facilities . at december 31 , 2014 , the balance on these notes payable was $ 1.1 million . in conjunction with the above mentioned acquisitions , in the event that a limited minority partner 's employment ceases at any time after three or four years from the acquisition date , as applicable , we have agreed to repurchase that individual 's non-controlling interest at a predetermined multiple of earnings before interest and taxes . as of december 31 , 2014 , we have accrued $ 1.8 million related to credit balances and overpayments due to patients and payors . this amount is expected to be paid in 2015 . 30 from september 2001 through december 31 , 2008 , the board authorized us to purchase , in the open market or in privately negotiated transactions , up to 2,250,000 shares of our common stock . in march 2009 , the board authorized the repurchase of up to 10 % or approximately 1,200,000 shares of our common stock ( “ march 2009 authorization ” ) . in connection with the march 2009 authorization , we amended our prior credit agreement to permit share repurchases of up to $ 15,000,000. we are required to retire shares purchased under the march 2009 authorization . under the march 2009 authorization , we have purchased a total of 859,499 shares . there is no expiration date for the share repurchase program . the credit agreement permits the company to purchase , commencing on october 24 , 2012 and at all times thereafter , up to $ 15,000,000 of its common stock subject to compliance with covenants . there are currently an additional estimated 340,501 shares that may be purchased from time to time in the open market or private transactions depending on price , availability and our cash position . we did not purchase any shares of our common stock during 2013 or 2014. off balance sheet arrangements with the exception of operating leases for our executive offices and clinic facilities discussed in note 14 to our consolidated financial statements included in item 8 , we have no off-balance sheet debt or

in addition to being evaluated for safety , 23 of the 29 patients were evaluable for preliminary signals of efficacy prior to or at the eight-week conclusion of their first cycle of treatment using the response evaluation criteria in solid tumors ( “ recist ” ) , the current standard for evaluating changes in the size of tumors . eight of the 23 patients ( 35 % ) had stable disease ( “ sd ” ) and 15 of 24 ( 65 % ) had progressive disease ( “ pd ” ) . it should be noted that of the 15 patients with pd , six came from cohorts 1 and 2 and are considered to have received less than potentially therapeutic doses of sbp-101 . we also noted that 28 of the 29 patients had follow-up blood tests measuring the tumor marker ca 19-9 associated with pancreatic ductal adenocarcinoma . eleven of these patients ( 39 % ) had reductions in the ca 19-9 levels , as measured at least once after the baseline assessment . seven of the remaining 17 patients who showed no reduction in ca 19-9 came from cohorts one and two . by cohort , stable disease occurred in two patients in cohort 3 , two patients in cohort 4 and four patients in cohort 5. the best response outcomes and best median survival were observed in the group of patients who received total cumulative doses of approximately 6 mg/kg ( cohort 3 ) . two of four patients ( 50 % ) showed sd at week eight . median survival in this group was 5.9 months , with two patients surviving 8 and 10 months , respectively . by total cumulative dose received , 5 of 12 patients ( 42 % ) who received total cumulative doses between 2.5 mg/kg and 8.0 mg/kg had reductions in the ca19-9 levels , as measured at least once after the baseline assessment . nine of these patients ( 67 % ) exceeded 3 months of overall survival ( “ os ” ) , three patients ( 25 % ) exceeded 9 months of os and two patients ( 17 % ) exceeded 1 year of os and were still alive at the end of the study . 40 this study was conducted at clinical sites in both australia and the united states including the mayo clinic scottsdale and honorhealth in scottsdale , az , the austin health olivia newton-john cancer wellness & research centre in melbourne , australia and the ashford cancer centre in adelaide , australia . with the approval of the dsmb , we cancelled the phase 1b portion of the first-in-human monotherapy study in order to evaluate sbp-101 as front line , combination chemotherapy in pancreatic cancer patients . we began enrolling patients in our next clinical trial in june of 2018. this second clinical trial is a phase 1a/1b study of the safety , efficacy and pharmacokinetics of sbp-101 administered in combination with two standard-of-care chemotherapy agents , gemcitabine and nab-paclitaxel . we are currently conducting the trial at four study sites ( three in australia and one in the united states ) . in the phase 1a portion of this trial , we expect to enroll three cohorts of three to six patients with increased dosage levels of sbp-101 administered in the second and third cohorts . demonstration of adequate safety in phase 1a is expected to lead to the phase 1b exploration of efficacy , in which we plan to enroll ten patients using the recommended dosage level determined in phase 1a . should we obtain adequate funding , we hope to increase the number of patients enrolled in the phase 1b portion of the trial to 36 , thus providing a stronger basis for the next steps in the clinical evaluation of sbp - 101. we expect to complete phase 1a in the fourth quarter of 2019. early results from the phase 1b expansion could become available as soon as the second half of 2020. we estimate that completion of our phase 1a/1b clinical trial in pda will require additional funding of approximately $ 6 to $ 12 million . additional clinical trials will be required for fda or other similar approvals if the results of the front-line clinical trial of our sbp-101 product candidate justify continued development . the cost and timing of additional clinical trials is highly dependent on the nature and size of the trials ; however , it is estimated that the next steps in the approval process could cost between $ 25 and $ 30 million . financial overview we have incurred losses of $ 35.1 million since our inception in 2011. for the year ended december 31 , 2018 , we incurred a net loss of $ 5.9 million , which includes a non-cash charge of $ 1.8 million related to the amortization of the debt discount on $ 3.1 million of convertible notes which converted to common stock and common stock and warrants during the year . we also incurred negative cash flows from operating activities of $ 2.4 million for this period . we expect to incur substantial losses , which will continue to generate negative net cash flows from operating activities , as we continue to pursue research and development activities and commercialize our sbp-101 product candidate . our increase in cash compared to december 31 , 2017 was primarily due to $ 3.6 aggregate proceeds from equity and debt offerings completed during 2018 , offset in part by cash used in operations . story_separator_special_tag pursuant to these closings we issued notes with a principal balance equal to the gross proceeds of $ 817,000 and issued 481,422 warrants to purchase common stock 46 cash flows net cash used in operating activities net cash used in operating activities was $ 2.4 million during 2018 , compared to $ 3.4 million during 2017. the net cash used in each of these periods primarily reflects the net loss for these periods and is partially offset by the effects of changes in operating assets and liabilities . in the year ended december 31 , 2018 , the net loss is also offset by a non-cash charge of $ 1.8 million related to the amortization of the discount on the 2017 convertible notes payable . in the year ended december 31 , 2017 , the net loss is also offset by a non-cash charge of $ 3.7 million related to the induced conversions of $ 2.9 million of convertible promissory notes , including accrued but unpaid interest , and $ 250,000 aggregate principal amount of demand notes and a non-cash charge of $ 1.4 million related to the amortization of the discount on the 2017 convertible notes payable . story_separator_special_tag font-size : 10pt ; margin-top : 0pt ; margin-bottom : 0pt ; `` > we require additional funds to continue our operations and execute our business plan , including completing our current phase 1 clinical trial , planning for required future trials and pursuing regulatory approvals in the united states , the european union and other international markets . we historically have financed our operations principally from the sale of convertible debt and equity securities . while we have been successful in the past in obtaining the necessary capital to support our operations and we are likely to seek additional financing through similar means , there is no assurance that we will be able to obtain additional financing under commercially reasonable terms and conditions , or at all . we believe that our existing cash , combined with the proceeds from the sale of the 2018 notes , will be sufficient to fund our operating expenses through the second quarter of 2019. if we are unable to obtain additional financing when needed , we would need to scale back our operations taking actions which may include , among other things , reducing use of outside professional service providers , reducing staff or staff compensation , significantly modify or delay the development of our sbp-101 product candidate , license to third parties the rights to commercialize our sbp-101 product candidate for pancreatic cancer , pancreatitis or other applications that we would otherwise seek to pursue , or cease operations . to the extent that we raise additional capital through the sale of equity or convertible debt securities , the interests of our current stockholders would be diluted , and the terms may include liquidation or other preferences that adversely affect the rights of our current stockholders . if we issue preferred stock , it could affect the rights of our stockholders or reduce the value of our common stock . in particular , specific rights granted to future holders of preferred stock may include voting rights , preferences as to dividends and liquidation , conversion and redemption rights , sinking fund provisions , and restrictions on our ability to merge with or sell our assets to a third party . debt financing , if available , may involve agreements that include covenants limiting or restricting our ability to take specific actions , such as incurring additional debt , making capital expenditures or declaring dividends . any of these events could adversely affect our ability to achieve our regulatory approvals and commercialization goals and harm our business . our future success is dependent upon our ability to obtain additional financing , the success of our current phase 1a/1b clinical trial and required future trials , our ability to obtain marketing approval for our sbp-101 product candidate in the united states , the european union and other international markets . if we are unable to obtain additional financing when needed , if our phase 1 clinical trial is not successful , if we do not receive regulatory approval required future trials or if once these studies are concluded , we do not receive marketing approval for our sbp-101 product candidate , we would not be able to continue as a going concern and would be forced to cease operations . the financial statements included in this report have been prepared assuming that we will continue as a going concern and do not include any adjustments relating to the recoverability or classification of assets or the amounts of liabilities that might result from the outcome of these uncertainties . 49 license agreement on december 22 , 2011 , we entered into an exclusive license agreement with the university of florida research foundation ( “ ufrf ” ) , which was acquired in exchange for $ 15,000 in cash and the issuance of 10 % of our common stock . upon executing the license agreement , 80,000 shares of common stock were issued to ufrf which was determined to have a fair value of $ 20,000 based upon an estimated fair value of our common stock of $ 0.25 per share . the license agreement also contained an anti-dilution provision which required the company to issue additional shares to ufrf sufficient for ufrf to maintain its 10 % ownership interest in the company until we secured an addition $ 2.0 million external investment . this investment was received during 2012. the license agreement requires the company to pay royalties to ufrf ranging from 2.5 % to 5 % of net sales of licensed products developed from the licensed technology . minimum annual royalties are required after the initial occurrence of a commercial sale of a marketed product . royalties are payable for the longer of ( i ) the last to expire of the claims

net cash provided by financing activities net cash provided by financing activities was $ 3.6 million for the years ended december 31 , 2018 which was comprised primarily of net proceeds from the sale of common stock and warrants ( $ 2.3 million ) and the sale of the 2018 notes and warrants ( $ 1.3 million ) . during the year ended december 31 , 2017 , net cash provided by financing activities was $ 3.1 million which resulted from net proceeds received in the sale of convertible promissory notes . capital requirements as we continue to pursue our operations and execute our business plan , including the completion of our current phase 1a/1b clinical trial for our initial product candidate , sbp-101 , in pancreatic cancer , planning for required future trials and pursuing regulatory approvals in the united states , the european union and other international markets , we expect to continue to incur substantial and increasing losses , which will continue to generate negative net cash flows from operating activities . our future capital uses and requirements depend on numerous current and future factors . these factors include , but are not limited to , the following : ● the progress of clinical trials required to support our applications for regulatory approvals , including our phase 1a /1b clinical trial , a human clinical trial in australia and the united states ; ● our ability to demonstrate the safety and effectiveness of our sbp-101 product candidate ; ● our ability to obtain regulatory approval of our sbp-101 product candidate in the united states , the european union or other international markets ; ● the cost and delays in product development that may result from changes in regulatory oversight applicable to our sbp-101 product candidate ; ● the market acceptance and level of future sales of our sbp-101 product candidate ; ● the rate of progress in establishing reimbursement arrangements with third-party payors ; ● the effect of competing technological and market developments ; and ● the costs involved in filing and prosecuting patent applications and enforcing or defending patent 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. ```net cash provided by financing activities net cash provided by financing activities was $ 3.6 million for the years ended december 31 , 2018 which was comprised primarily of net proceeds from the sale of common stock and warrants ( $ 2.3 million ) and the sale of the 2018 notes and warrants ( $ 1.3 million ) . during the year ended december 31 , 2017 , net cash provided by financing activities was $ 3.1 million which resulted from net proceeds received in the sale of convertible promissory notes . capital requirements as we continue to pursue our operations and execute our business plan , including the completion of our current phase 1a/1b clinical trial for our initial product candidate , sbp-101 , in pancreatic cancer , planning for required future trials and pursuing regulatory approvals in the united states , the european union and other international markets , we expect to continue to incur substantial and increasing losses , which will continue to generate negative net cash flows from operating activities . our future capital uses and requirements depend on numerous current and future factors . these factors include , but are not limited to , the following : ● the progress of clinical trials required to support our applications for regulatory approvals , including our phase 1a /1b clinical trial , a human clinical trial in australia and the united states ; ● our ability to demonstrate the safety and effectiveness of our sbp-101 product candidate ; ● our ability to obtain regulatory approval of our sbp-101 product candidate in the united states , the european union or other international markets ; ● the cost and delays in product development that may result from changes in regulatory oversight applicable to our sbp-101 product candidate ; ● the market acceptance and level of future sales of our sbp-101 product candidate ; ● the rate of progress in establishing reimbursement arrangements with third-party payors ; ● the effect of competing technological and market developments ; and ● the costs involved in filing and prosecuting patent applications and enforcing or defending patent claims . ``` Suspicious Activity Report : in addition to being evaluated for safety , 23 of the 29 patients were evaluable for preliminary signals of efficacy prior to or at the eight-week conclusion of their first cycle of treatment using the response evaluation criteria in solid tumors ( “ recist ” ) , the current standard for evaluating changes in the size of tumors . eight of the 23 patients ( 35 % ) had stable disease ( “ sd ” ) and 15 of 24 ( 65 % ) had progressive disease ( “ pd ” ) . it should be noted that of the 15 patients with pd , six came from cohorts 1 and 2 and are considered to have received less than potentially therapeutic doses of sbp-101 . we also noted that 28 of the 29 patients had follow-up blood tests measuring the tumor marker ca 19-9 associated with pancreatic ductal adenocarcinoma . eleven of these patients ( 39 % ) had reductions in the ca 19-9 levels , as measured at least once after the baseline assessment . seven of the remaining 17 patients who showed no reduction in ca 19-9 came from cohorts one and two . by cohort , stable disease occurred in two patients in cohort 3 , two patients in cohort 4 and four patients in cohort 5. the best response outcomes and best median survival were observed in the group of patients who received total cumulative doses of approximately 6 mg/kg ( cohort 3 ) . two of four patients ( 50 % ) showed sd at week eight . median survival in this group was 5.9 months , with two patients surviving 8 and 10 months , respectively . by total cumulative dose received , 5 of 12 patients ( 42 % ) who received total cumulative doses between 2.5 mg/kg and 8.0 mg/kg had reductions in the ca19-9 levels , as measured at least once after the baseline assessment . nine of these patients ( 67 % ) exceeded 3 months of overall survival ( “ os ” ) , three patients ( 25 % ) exceeded 9 months of os and two patients ( 17 % ) exceeded 1 year of os and were still alive at the end of the study . 40 this study was conducted at clinical sites in both australia and the united states including the mayo clinic scottsdale and honorhealth in scottsdale , az , the austin health olivia newton-john cancer wellness & research centre in melbourne , australia and the ashford cancer centre in adelaide , australia . with the approval of the dsmb , we cancelled the phase 1b portion of the first-in-human monotherapy study in order to evaluate sbp-101 as front line , combination chemotherapy in pancreatic cancer patients . we began enrolling patients in our next clinical trial in june of 2018. this second clinical trial is a phase 1a/1b study of the safety , efficacy and pharmacokinetics of sbp-101 administered in combination with two standard-of-care chemotherapy agents , gemcitabine and nab-paclitaxel . we are currently conducting the trial at four study sites ( three in australia and one in the united states ) . in the phase 1a portion of this trial , we expect to enroll three cohorts of three to six patients with increased dosage levels of sbp-101 administered in the second and third cohorts . demonstration of adequate safety in phase 1a is expected to lead to the phase 1b exploration of efficacy , in which we plan to enroll ten patients using the recommended dosage level determined in phase 1a . should we obtain adequate funding , we hope to increase the number of patients enrolled in the phase 1b portion of the trial to 36 , thus providing a stronger basis for the next steps in the clinical evaluation of sbp - 101. we expect to complete phase 1a in the fourth quarter of 2019. early results from the phase 1b expansion could become available as soon as the second half of 2020. we estimate that completion of our phase 1a/1b clinical trial in pda will require additional funding of approximately $ 6 to $ 12 million . additional clinical trials will be required for fda or other similar approvals if the results of the front-line clinical trial of our sbp-101 product candidate justify continued development . the cost and timing of additional clinical trials is highly dependent on the nature and size of the trials ; however , it is estimated that the next steps in the approval process could cost between $ 25 and $ 30 million . financial overview we have incurred losses of $ 35.1 million since our inception in 2011. for the year ended december 31 , 2018 , we incurred a net loss of $ 5.9 million , which includes a non-cash charge of $ 1.8 million related to the amortization of the debt discount on $ 3.1 million of convertible notes which converted to common stock and common stock and warrants during the year . we also incurred negative cash flows from operating activities of $ 2.4 million for this period . we expect to incur substantial losses , which will continue to generate negative net cash flows from operating activities , as we continue to pursue research and development activities and commercialize our sbp-101 product candidate . our increase in cash compared to december 31 , 2017 was primarily due to $ 3.6 aggregate proceeds from equity and debt offerings completed during 2018 , offset in part by cash used in operations . story_separator_special_tag pursuant to these closings we issued notes with a principal balance equal to the gross proceeds of $ 817,000 and issued 481,422 warrants to purchase common stock 46 cash flows net cash used in operating activities net cash used in operating activities was $ 2.4 million during 2018 , compared to $ 3.4 million during 2017. the net cash used in each of these periods primarily reflects the net loss for these periods and is partially offset by the effects of changes in operating assets and liabilities . in the year ended december 31 , 2018 , the net loss is also offset by a non-cash charge of $ 1.8 million related to the amortization of the discount on the 2017 convertible notes payable . in the year ended december 31 , 2017 , the net loss is also offset by a non-cash charge of $ 3.7 million related to the induced conversions of $ 2.9 million of convertible promissory notes , including accrued but unpaid interest , and $ 250,000 aggregate principal amount of demand notes and a non-cash charge of $ 1.4 million related to the amortization of the discount on the 2017 convertible notes payable . story_separator_special_tag font-size : 10pt ; margin-top : 0pt ; margin-bottom : 0pt ; `` > we require additional funds to continue our operations and execute our business plan , including completing our current phase 1 clinical trial , planning for required future trials and pursuing regulatory approvals in the united states , the european union and other international markets . we historically have financed our operations principally from the sale of convertible debt and equity securities . while we have been successful in the past in obtaining the necessary capital to support our operations and we are likely to seek additional financing through similar means , there is no assurance that we will be able to obtain additional financing under commercially reasonable terms and conditions , or at all . we believe that our existing cash , combined with the proceeds from the sale of the 2018 notes , will be sufficient to fund our operating expenses through the second quarter of 2019. if we are unable to obtain additional financing when needed , we would need to scale back our operations taking actions which may include , among other things , reducing use of outside professional service providers , reducing staff or staff compensation , significantly modify or delay the development of our sbp-101 product candidate , license to third parties the rights to commercialize our sbp-101 product candidate for pancreatic cancer , pancreatitis or other applications that we would otherwise seek to pursue , or cease operations . to the extent that we raise additional capital through the sale of equity or convertible debt securities , the interests of our current stockholders would be diluted , and the terms may include liquidation or other preferences that adversely affect the rights of our current stockholders . if we issue preferred stock , it could affect the rights of our stockholders or reduce the value of our common stock . in particular , specific rights granted to future holders of preferred stock may include voting rights , preferences as to dividends and liquidation , conversion and redemption rights , sinking fund provisions , and restrictions on our ability to merge with or sell our assets to a third party . debt financing , if available , may involve agreements that include covenants limiting or restricting our ability to take specific actions , such as incurring additional debt , making capital expenditures or declaring dividends . any of these events could adversely affect our ability to achieve our regulatory approvals and commercialization goals and harm our business . our future success is dependent upon our ability to obtain additional financing , the success of our current phase 1a/1b clinical trial and required future trials , our ability to obtain marketing approval for our sbp-101 product candidate in the united states , the european union and other international markets . if we are unable to obtain additional financing when needed , if our phase 1 clinical trial is not successful , if we do not receive regulatory approval required future trials or if once these studies are concluded , we do not receive marketing approval for our sbp-101 product candidate , we would not be able to continue as a going concern and would be forced to cease operations . the financial statements included in this report have been prepared assuming that we will continue as a going concern and do not include any adjustments relating to the recoverability or classification of assets or the amounts of liabilities that might result from the outcome of these uncertainties . 49 license agreement on december 22 , 2011 , we entered into an exclusive license agreement with the university of florida research foundation ( “ ufrf ” ) , which was acquired in exchange for $ 15,000 in cash and the issuance of 10 % of our common stock . upon executing the license agreement , 80,000 shares of common stock were issued to ufrf which was determined to have a fair value of $ 20,000 based upon an estimated fair value of our common stock of $ 0.25 per share . the license agreement also contained an anti-dilution provision which required the company to issue additional shares to ufrf sufficient for ufrf to maintain its 10 % ownership interest in the company until we secured an addition $ 2.0 million external investment . this investment was received during 2012. the license agreement requires the company to pay royalties to ufrf ranging from 2.5 % to 5 % of net sales of licensed products developed from the licensed technology . minimum annual royalties are required after the initial occurrence of a commercial sale of a marketed product . royalties are payable for the longer of ( i ) the last to expire of the claims

a summary of our capital expenditures for the last three years is as follows : replace_table_token_4_th ( a ) includes capital expenditures recorded as a result of certain ccic transactions that result in permanent improvements to our towers . we are not a party to such transactions , and do not make cash payments in connection with such transactions . capital expenditures increased by approximately $ 15.7 million from 2018 to 2019 predominately due to a higher volume of improvements performed on existing sites . 18 financing activities the net cash flows used for financing activities during the years ended december 31 , 2019 and 2018 were impacted by our continued practice of distributing excess cash to our member . see note 7 to our consolidated financial statements . contractual cash obligations the following table summarizes our contractual cash obligations as of december 31 , 2019 . these contractual cash obligations relate primarily to our 3.849 % secured notes and lease obligations for land interests under our towers . replace_table_token_5_th ( a ) the following items are in addition to the obligations disclosed in the above table : we have a legal obligation to perform certain asset retirement activities , including requirements upon lease and easement terminations to remove sites or remediate the land upon which our site resides . the cash obligations disclosed in the above table , as of december 31 , 2019 , are exclusive of estimated undiscounted future cash outlays for asset retirement obligations of approximately $ 82.6 million . as of december 31 , 2019 , the net present value of these asset retirement obligations was approximately $ 11.4 million . see note 10 to our consolidated financial statements . we are contractually obligated to pay or reimburse others for property taxes related to our sites . ccic has the option to purchase approximately 68 % of our sites that are leased or subleased or operated and managed under sprint master leases at the end of their contract term . ccic has no obligation to exercise the purchase option . see note 1 to our consolidated financial statements . we have legal obligations for open purchase order commitments obtained in the ordinary course of business that have not yet been fulfilled . ( b ) amounts relate primarily to lease obligations for the land interests on which our towers reside and are based on the assumption that payments will be made for certain renewal periods exercisable at our option that are reasonably certain to be exercised and excludes our contingent payments for operating leases ( such as payments based on revenues derived from sites located on the leased asset ) as such arrangements are excluded from our operating lease liability . see note 11 to our consolidated financial statements for a further discussion of our operating lease obligations . debt restrictions the secured notes indenture does not contain financial maintenance covenants but it does contain restrictive covenants , subject to certain exceptions , related to our ability to incur indebtedness , incur liens , enter into certain mergers or change of control transactions , sell or issue equity interests , and enter into related party transactions . with respect to the restriction regarding the issuance of debt , we may not issue debt other than ( 1 ) certain permitted refinancings of the 3.849 % secured notes , ( 2 ) unsecured trade payables in the ordinary course of business and financing of equipment , land or other property up to an aggregate of $ 100.0 million or ( 3 ) unsecured debt or additional notes under the secured notes indenture provided that the debt to adjusted consolidated cash flow ratio ( as defined in the secured notes indenture ) at the time of incurrence , and after giving effect to such incurrence , would have been no greater than 3.5 to 1. as of december 31 , 2019 , our debt to adjusted consolidated cash flow ratio was 2.3 to 1 , and , as a result , we are currently not restricted in our ability to incur additional indebtedness . for purposes of restrictions related to our secured notes indenture , relevant debt calculations ( such as our debt to adjusted consolidated cash flow ratio ) are calculated in accordance with gaap that was in effect as of december 2012 , and , as such , exclude the impact of our lease liability recorded as a result of our new lease standard adoption on january 1 , 2019. further , we are not restricted in our ability to distribute cash to affiliates or issue dividends to our member . accounting and reporting matters critical accounting policies and estimates our critical accounting policies and estimates are those that we believe ( 1 ) are most important to the portrayal of our financial condition and results of operations or ( 2 ) require our most difficult , subjective or complex judgments , often as a result of the need to make estimates about the effect of matters that are inherently uncertain . in many cases , the accounting treatment of a particular transaction is specifically prescribed by gaap . in other cases , management is required to exercise judgment in the application of accounting principles with respect to particular transactions . the critical accounting policies and estimates for 2019 are not intended to be a comprehensive list of our accounting policies and estimates . see note 3 to our consolidated financial statements for a summary of our significant accounting policies , including information related to our adoption of the new lease accounting guidance ( commonly referred to as `` acs 842 `` or `` new lease standard `` on january 1 , 2019 . 19 lease accounting - lessee . our lessee arrangements primarily consist of ground leases for land under our towers . story_separator_special_tag any purchase price in excess of the net fair value of the assets acquired and liabilities assumed is allocated to goodwill . the fair value of the vast majority of our assets and liabilities is determined by using either : 20 ( 1 ) estimates of replacement costs ( for tangible fixed assets such as sites ) , or ( 2 ) discounted cash flow valuation methods ( for estimating identifiable intangibles such as site rental contracts and tenant relationships or operating lease right-of-use assets and lease liabilities acquired ) . the purchase price allocation requires subjective estimates that , if incorrectly estimated , could be material to our consolidated financial statements , including the amount of depreciation , amortization and accretion expense . the most important estimates for measurement of tangible fixed assets are : ( 1 ) the cost to replace the asset with a new asset and ( 2 ) the economic useful life after giving effect to age , quality and condition . the most important estimates for measurement of intangible assets are ( 1 ) discount rates and ( 2 ) timing , length and amount of cash flows including estimates regarding tenant renewals and cancellations . the most important estimates for measurement of operating lease rou assets and lease liabilities acquired are ( 1 ) present value of our future lease payments , including whether renewals or extensions should be measured , and ( 2 ) favorability or unfavorability to the current market terms . we record the fair value of obligations to perform certain asset retirement activities , including requirements , pursuant to our ground contracts or easements , to remove sites or remediate the land upon which certain of our sites reside . in determining the fair value of these asset retirement obligations , we must make several subjective and highly judgmental estimates such as those related to : ( 1 ) timing of cash flows , ( 2 ) future costs , ( 3 ) discount rates and ( 4 ) the probability of enforcement to remove the towers or remediate the land . see note 3 to our consolidated financial statements . accounting for long-lived assets — useful lives . we are required to make subjective assessments as to the useful lives of our tangible and intangible assets for purposes of determining depreciation , amortization and accretion expense that , if incorrectly estimated , could be material to our consolidated financial statements . depreciation expense for our property and equipment is computed using the straight-line method over the estimated useful lives of our various classes of tangible assets . the substantial portion of our property and equipment represents the cost of our sites , which is depreciated with an estimated useful life equal to the shorter of ( 1 ) 20 years or ( 2 ) the term of the lease ( including optional renewals ) for the land interests under the towers . the useful life of our intangible assets is estimated based on the period over which the intangible asset is expected to benefit us and gives consideration to the expected useful life of other assets to which the useful life may relate . we review the expected useful lives of our intangible assets on an ongoing basis and adjust if necessary . amortization expense for intangible assets is computed using the straight-line method over the estimated useful life of each of the intangible assets . the useful life of the site rental contracts and tenant relationships intangible assets is limited by the maximum depreciable life of the site ( 20 years ) , as a result of the interdependency of the sites and site rental contracts and tenant relationships . in contrast , the site rental contracts and tenant relationships are estimated to provide economic benefits for several decades because of the low rate of tenant cancellations and high rate of renewals experienced to date . thus , while site rental contracts and tenant relationships are valued based upon the fair value of the site rental contracts and tenant relationships which includes assumptions regarding both ( 1 ) tenants ' exercise of optional renewals contained in the acquired leases and ( 2 ) renewals of the acquired leases past the contractual term including exercisable options , the site rental contracts are amortized over a period not to exceed 20 years as a result of the useful life being limited by the depreciable life of the sites . accounting for long-lived assets — impairment evaluation . we review the carrying values of property and equipment , intangible assets or other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable . we utilize the following dual grouping policy for purposes of determining the unit of account for testing impairment of the site rental contracts and tenant relationships : ( 1 ) we pool site rental contracts and tenant relationships intangible assets and property and equipment into portfolio groups ; and ( 2 ) we separately pool site rental contracts and tenant relationships by significant tenant or by tenant grouping for individually insignificant tenants , as appropriate . we first pool site rental contracts and tenant relationships intangible assets and property and equipment into portfolio groups for purposes of determining the unit of account for impairment testing , because we view sites as portfolios and sites in a given portfolio and its related tenant contracts are not largely independent of the other sites in the portfolio . we re-evaluate the appropriateness of the pooled groups at least annually . this use of grouping is based in part on ( 1 ) our limitations regarding disposal of sites , ( 2 ) the interdependencies of site portfolios and ( 3 ) the manner in which sites are traded in the marketplace . the vast majority of our site rental contracts and tenant relationships intangible assets and property and equipment are pooled

net cash provided by operating activities was $ 451.1 million . see `` item 7. md & a—liquidity and capital resources . '' current events as the novel coronavirus ( covid-19 ) continues to spread and significantly impact the united states , public and private sector policies and initiatives intended to reduce the transmission of covid-19 ( `` initiatives '' ) , such as the imposition of travel restrictions , mandates from federal , state and local authorities to avoid large gatherings of people , quarantine or `` shelter-in-place , '' the promotion of social distancing and the adoption of work-from-home and online learning by companies and institutions , could impact our operations . among other things , covid-19 and the initiatives could ( 1 ) adversely affect the ability of our suppliers , vendors and the manager to provide products and services to us , ( 2 ) result in decreased demand for our sites , and ( 3 ) make it more difficult for us and the manager to serve our customers , including as a result of delays or suspensions in the issuance of permits or other authorizations needed to conduct our business . due to the speed with which the situation is developing and factors beyond our knowledge or control , including the duration and severity of covid-19 and the initiatives as well as third-party actions taken to contain its spread and mitigate its public health effects , at this time we can not estimate or predict the impact of covid-19 or the initiatives on our business , financial position , results of operations or cash flows , particularly over the near to medium term , but the impact could be material . regulation s-x considerations in prior annual reports on form 10-k , ccl has included ( i ) audited financial statements of certain of ccl 's wholly owned subsidiaries whose securities are pledged as collateral for the 3.849 % secured notes that were required to be included therein pursuant to rule 3-16 of regulation s-x and ( ii ) certain other information in the notes to our audited consolidated financial statements with respect to ccl 's wholly owned subsidiaries that guarantee the 3.849 % secured notes pursuant to rule 3-10 of regulation s-x .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```net cash provided by operating activities was $ 451.1 million . see `` item 7. md & a—liquidity and capital resources . '' current events as the novel coronavirus ( covid-19 ) continues to spread and significantly impact the united states , public and private sector policies and initiatives intended to reduce the transmission of covid-19 ( `` initiatives '' ) , such as the imposition of travel restrictions , mandates from federal , state and local authorities to avoid large gatherings of people , quarantine or `` shelter-in-place , '' the promotion of social distancing and the adoption of work-from-home and online learning by companies and institutions , could impact our operations . among other things , covid-19 and the initiatives could ( 1 ) adversely affect the ability of our suppliers , vendors and the manager to provide products and services to us , ( 2 ) result in decreased demand for our sites , and ( 3 ) make it more difficult for us and the manager to serve our customers , including as a result of delays or suspensions in the issuance of permits or other authorizations needed to conduct our business . due to the speed with which the situation is developing and factors beyond our knowledge or control , including the duration and severity of covid-19 and the initiatives as well as third-party actions taken to contain its spread and mitigate its public health effects , at this time we can not estimate or predict the impact of covid-19 or the initiatives on our business , financial position , results of operations or cash flows , particularly over the near to medium term , but the impact could be material . regulation s-x considerations in prior annual reports on form 10-k , ccl has included ( i ) audited financial statements of certain of ccl 's wholly owned subsidiaries whose securities are pledged as collateral for the 3.849 % secured notes that were required to be included therein pursuant to rule 3-16 of regulation s-x and ( ii ) certain other information in the notes to our audited consolidated financial statements with respect to ccl 's wholly owned subsidiaries that guarantee the 3.849 % secured notes pursuant to rule 3-10 of regulation s-x . ``` Suspicious Activity Report : a summary of our capital expenditures for the last three years is as follows : replace_table_token_4_th ( a ) includes capital expenditures recorded as a result of certain ccic transactions that result in permanent improvements to our towers . we are not a party to such transactions , and do not make cash payments in connection with such transactions . capital expenditures increased by approximately $ 15.7 million from 2018 to 2019 predominately due to a higher volume of improvements performed on existing sites . 18 financing activities the net cash flows used for financing activities during the years ended december 31 , 2019 and 2018 were impacted by our continued practice of distributing excess cash to our member . see note 7 to our consolidated financial statements . contractual cash obligations the following table summarizes our contractual cash obligations as of december 31 , 2019 . these contractual cash obligations relate primarily to our 3.849 % secured notes and lease obligations for land interests under our towers . replace_table_token_5_th ( a ) the following items are in addition to the obligations disclosed in the above table : we have a legal obligation to perform certain asset retirement activities , including requirements upon lease and easement terminations to remove sites or remediate the land upon which our site resides . the cash obligations disclosed in the above table , as of december 31 , 2019 , are exclusive of estimated undiscounted future cash outlays for asset retirement obligations of approximately $ 82.6 million . as of december 31 , 2019 , the net present value of these asset retirement obligations was approximately $ 11.4 million . see note 10 to our consolidated financial statements . we are contractually obligated to pay or reimburse others for property taxes related to our sites . ccic has the option to purchase approximately 68 % of our sites that are leased or subleased or operated and managed under sprint master leases at the end of their contract term . ccic has no obligation to exercise the purchase option . see note 1 to our consolidated financial statements . we have legal obligations for open purchase order commitments obtained in the ordinary course of business that have not yet been fulfilled . ( b ) amounts relate primarily to lease obligations for the land interests on which our towers reside and are based on the assumption that payments will be made for certain renewal periods exercisable at our option that are reasonably certain to be exercised and excludes our contingent payments for operating leases ( such as payments based on revenues derived from sites located on the leased asset ) as such arrangements are excluded from our operating lease liability . see note 11 to our consolidated financial statements for a further discussion of our operating lease obligations . debt restrictions the secured notes indenture does not contain financial maintenance covenants but it does contain restrictive covenants , subject to certain exceptions , related to our ability to incur indebtedness , incur liens , enter into certain mergers or change of control transactions , sell or issue equity interests , and enter into related party transactions . with respect to the restriction regarding the issuance of debt , we may not issue debt other than ( 1 ) certain permitted refinancings of the 3.849 % secured notes , ( 2 ) unsecured trade payables in the ordinary course of business and financing of equipment , land or other property up to an aggregate of $ 100.0 million or ( 3 ) unsecured debt or additional notes under the secured notes indenture provided that the debt to adjusted consolidated cash flow ratio ( as defined in the secured notes indenture ) at the time of incurrence , and after giving effect to such incurrence , would have been no greater than 3.5 to 1. as of december 31 , 2019 , our debt to adjusted consolidated cash flow ratio was 2.3 to 1 , and , as a result , we are currently not restricted in our ability to incur additional indebtedness . for purposes of restrictions related to our secured notes indenture , relevant debt calculations ( such as our debt to adjusted consolidated cash flow ratio ) are calculated in accordance with gaap that was in effect as of december 2012 , and , as such , exclude the impact of our lease liability recorded as a result of our new lease standard adoption on january 1 , 2019. further , we are not restricted in our ability to distribute cash to affiliates or issue dividends to our member . accounting and reporting matters critical accounting policies and estimates our critical accounting policies and estimates are those that we believe ( 1 ) are most important to the portrayal of our financial condition and results of operations or ( 2 ) require our most difficult , subjective or complex judgments , often as a result of the need to make estimates about the effect of matters that are inherently uncertain . in many cases , the accounting treatment of a particular transaction is specifically prescribed by gaap . in other cases , management is required to exercise judgment in the application of accounting principles with respect to particular transactions . the critical accounting policies and estimates for 2019 are not intended to be a comprehensive list of our accounting policies and estimates . see note 3 to our consolidated financial statements for a summary of our significant accounting policies , including information related to our adoption of the new lease accounting guidance ( commonly referred to as `` acs 842 `` or `` new lease standard `` on january 1 , 2019 . 19 lease accounting - lessee . our lessee arrangements primarily consist of ground leases for land under our towers . story_separator_special_tag any purchase price in excess of the net fair value of the assets acquired and liabilities assumed is allocated to goodwill . the fair value of the vast majority of our assets and liabilities is determined by using either : 20 ( 1 ) estimates of replacement costs ( for tangible fixed assets such as sites ) , or ( 2 ) discounted cash flow valuation methods ( for estimating identifiable intangibles such as site rental contracts and tenant relationships or operating lease right-of-use assets and lease liabilities acquired ) . the purchase price allocation requires subjective estimates that , if incorrectly estimated , could be material to our consolidated financial statements , including the amount of depreciation , amortization and accretion expense . the most important estimates for measurement of tangible fixed assets are : ( 1 ) the cost to replace the asset with a new asset and ( 2 ) the economic useful life after giving effect to age , quality and condition . the most important estimates for measurement of intangible assets are ( 1 ) discount rates and ( 2 ) timing , length and amount of cash flows including estimates regarding tenant renewals and cancellations . the most important estimates for measurement of operating lease rou assets and lease liabilities acquired are ( 1 ) present value of our future lease payments , including whether renewals or extensions should be measured , and ( 2 ) favorability or unfavorability to the current market terms . we record the fair value of obligations to perform certain asset retirement activities , including requirements , pursuant to our ground contracts or easements , to remove sites or remediate the land upon which certain of our sites reside . in determining the fair value of these asset retirement obligations , we must make several subjective and highly judgmental estimates such as those related to : ( 1 ) timing of cash flows , ( 2 ) future costs , ( 3 ) discount rates and ( 4 ) the probability of enforcement to remove the towers or remediate the land . see note 3 to our consolidated financial statements . accounting for long-lived assets — useful lives . we are required to make subjective assessments as to the useful lives of our tangible and intangible assets for purposes of determining depreciation , amortization and accretion expense that , if incorrectly estimated , could be material to our consolidated financial statements . depreciation expense for our property and equipment is computed using the straight-line method over the estimated useful lives of our various classes of tangible assets . the substantial portion of our property and equipment represents the cost of our sites , which is depreciated with an estimated useful life equal to the shorter of ( 1 ) 20 years or ( 2 ) the term of the lease ( including optional renewals ) for the land interests under the towers . the useful life of our intangible assets is estimated based on the period over which the intangible asset is expected to benefit us and gives consideration to the expected useful life of other assets to which the useful life may relate . we review the expected useful lives of our intangible assets on an ongoing basis and adjust if necessary . amortization expense for intangible assets is computed using the straight-line method over the estimated useful life of each of the intangible assets . the useful life of the site rental contracts and tenant relationships intangible assets is limited by the maximum depreciable life of the site ( 20 years ) , as a result of the interdependency of the sites and site rental contracts and tenant relationships . in contrast , the site rental contracts and tenant relationships are estimated to provide economic benefits for several decades because of the low rate of tenant cancellations and high rate of renewals experienced to date . thus , while site rental contracts and tenant relationships are valued based upon the fair value of the site rental contracts and tenant relationships which includes assumptions regarding both ( 1 ) tenants ' exercise of optional renewals contained in the acquired leases and ( 2 ) renewals of the acquired leases past the contractual term including exercisable options , the site rental contracts are amortized over a period not to exceed 20 years as a result of the useful life being limited by the depreciable life of the sites . accounting for long-lived assets — impairment evaluation . we review the carrying values of property and equipment , intangible assets or other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable . we utilize the following dual grouping policy for purposes of determining the unit of account for testing impairment of the site rental contracts and tenant relationships : ( 1 ) we pool site rental contracts and tenant relationships intangible assets and property and equipment into portfolio groups ; and ( 2 ) we separately pool site rental contracts and tenant relationships by significant tenant or by tenant grouping for individually insignificant tenants , as appropriate . we first pool site rental contracts and tenant relationships intangible assets and property and equipment into portfolio groups for purposes of determining the unit of account for impairment testing , because we view sites as portfolios and sites in a given portfolio and its related tenant contracts are not largely independent of the other sites in the portfolio . we re-evaluate the appropriateness of the pooled groups at least annually . this use of grouping is based in part on ( 1 ) our limitations regarding disposal of sites , ( 2 ) the interdependencies of site portfolios and ( 3 ) the manner in which sites are traded in the marketplace . the vast majority of our site rental contracts and tenant relationships intangible assets and property and equipment are pooled

our preclinical antibody development program comprises an antibody against the ion channel kv1.3 , which is an important molecule in regulating t-cell activation in a number of autoimmune diseases . we have performed experiments showing that this antibody potently blocks activation of human t-cells in vitro . future development efforts will include a phase i clinical trial . consistent with our commercialization strategy , we may license our technology as the opportunities may arise , that may result in additional license fees , revenues from contract research and other related revenues . successful future operations will depend on our and our partners ' ability to transform our research and development activities into a commercially feasible technology . on may 31 , 2017 , we entered into an agreement , or the agreement , which was amended on august 1 , 2017 , with sevion acquisition co. ltd. , an israeli company and our wholly-owned subsidiary , or acquisition subsidiary , and eloxx pharmaceuticals ltd. , an israeli company , or eloxx , pursuant to which eloxx will merge with and into acquisition subsidiary , with eloxx surviving as our wholly-owned subsidiary . we refer to the transaction with eloxx herein as the “ transaction . ” consummation of the transaction is subject to certain closing conditions , including , among other things : ( i ) approval of the transaction by the stockholders of eloxx ; and ( ii ) the successful consummation of separate equity financings resulting in cash investments in our business and eloxx of no less than $ 12,000,000 each , or the financing covenant . pursuant to the agreement , the transaction must close , if it closes , on or prior to december 31 , 2017 , and we will not be entitled to receive any portion of the money that we ultimately raise in fulfillment of our financing covenant unless the transaction closes . 27 on july 28 , 2017 , we received gross proceeds of $ 1,500,000 from opko health , inc. , or opko , one of our existing shareholders , pursuant to a subscription agreement , which we refer to as the subscription agreement , by and among us , eloxx , opko and certain other subscribers that we entered into in connection with the transaction . the funds we received from opko satisfied a portion of our financing covenant . if the transaction does not close , we will not be entitled to keep any portion of the money that we ultimately raise in fulfillment of our financing covenant , with the exception of the $ 1.5 million in gross proceeds we received from opko , which is not conditioned upon closing of the transaction . accordingly , if we do not complete the transaction and are unable to raise additional funds ( apart from any funds we raise in satisfaction of our financing covenant , which funds are conditioned upon closing of the transaction ) , we do not believe that we will have enough cash to continue as a going concern past december 31 , 2017. however , we believe we currently have enough cash to fund operations through december 31 , 2017. critical accounting policies and estimates revenue recognition we record revenue under technology license and development agreements related to the following . actual fees received may vary from the recorded estimated revenues . · nonrefundable upfront license fees that are received in exchange for the transfer of our technology to licensees , for which no further obligations to the licensee exist with respect to the basic technology transferred , are recognized as revenue on the earlier of when payments are received or collections are assured . · nonrefundable upfront license fees that are received in connection with agreements that include time-based payments are , together with the time-based payments , deferred and amortized ratably over the estimated research period of the license . · milestone payments , which are contingent upon the achievement of certain research goals , are recognized as revenue when the milestones , as defined in the particular agreement , are achieved . · direct and indirect costs reimbursed are offset against r & d costs . the effect of any change in revenues from technology license and development agreements would be reflected in revenues in the period such determination was made . historically , no such adjustments have been made . estimates of expenses our research and development agreements with third parties provide for an estimate of our expenses and costs , which are variable and are based on the actual services performed by the third party . we estimate the aggregate amount of the expenses based upon the projected amounts that are set forth in the agreements , and we accrue the expenses for which we have not yet been invoiced or prepay the expenses that have been invoiced but the services have not yet been performed . in estimating the expenses , we consider , among other things , the following factors : · the existence of any prior relationship between us and the third party provider ; · the past results of prior research and development services performed by the third party provider ; and 28 · the scope and timing of the research and development services set forth in the agreement with the third party provider . after the research services are performed and we are invoiced , we make any adjustments that are necessary to accurately report research and development expense for the period . story_separator_special_tag the company recognized an impairment charge of $ 5,780,951 , the balance of the remaining goodwill , for the fiscal year ended june 30 , 2016. impairment of acquired r & d during the fiscal year ended june 30 , 2017 and 2016 , we reviewed acquired r & d for impairment and determined that impairment had occurred as a result of the decrease in the market value of the company for the fiscal years ended june 30 , 2017 and 2016 resulting in the company recognizing an impairment charge of $ 2,600,000 and $ 1,700,000 , respectively . impairment and write-off of patents abandoned during the fiscal year ended june 30 , 2015 , we reviewed our patent portfolio and determined that our agricultural patents were impaired . we also identified several patents and patents pending that we believe we no longer need to maintain without having a material impact on the portfolio . therefore , we wrote-off the net book value of those patents and patents pending in the amount of $ 2,290,836 during fiscal year 2015 . 36 fiscal year ended june 30 , 2016 revenue during the fiscal year ended june 30 , 2016 , revenue in the amount of $ 75,000 represented the amortization of deferred revenue for a collaboration and option agreement . operating expenses replace_table_token_5_th general and administrative expenses general and administrative expenses consist of the following : replace_table_token_6_th · payroll and benefits for the fiscal year ended june 30 , 2016 was lower than for the fiscal year ended june 30 , 2015 as a result of onetime severance payments previously paid to employees terminated in connection with the closing of our new jersey office in november 2014 . · professional fees for the fiscal year ended june 30 , 2016 was higher than for the fiscal year ended june 30 , 2015 as a result of an increase in accounting costs associated with additional bookkeeping , consulting and auditing fees related to our financing efforts in june and july of 2015 . · 37 · stock-based compensation for the fiscal years ended june 30 , 2016 and june 30 , 2015 consisted of the amortized portion of the black-scholes value of options and warrants granted to directors , employees and consultants . during the fiscal years ended june 30 , 2016 and 2015 , 485,682 and 1,203,676 options , respectively , were granted to such individuals . in addition , during the fiscal years ended june 30 , 2016 and 2015 , 195,363 and 556,061 options , respectively , expired or were forfeited . stock-based compensation for the fiscal year ended june 30 , 2016 was lower than the fiscal year ended june 30 , 2015 primarily due to fewer options issued during the fiscal year ended june 30 , 2016 . · · delaware franchise tax decreased for the fiscal year ended june 30 , 2016 from the fiscal year ended june 30 , 2015 as a result of an increase in the computed tax calculation resulting from the reverse stock split and acquisition of fabrus , inc. in may 2014 . · · investor relations fees for the fiscal year ended june 30 , 2016 was lower than for the fiscal year ended june 30 , 2015 as a result of reduced investor relations activity and spending . · · consulting fees for the fiscal year ended june 30 , 2016 were higher than for the fiscal year ended june 30 , 2015 primarily due to our treatment of our ceo as a consultant , as compared to the prior year when our ceo was paid as an employee for the majority of the period . · other general and administrative expenses for the fiscal year ended june 30 , 2016 were lower than for the fiscal year ended june 30 , 2015 due to reduction in employees and reduced operating activity . research and development expenses replace_table_token_7_th 38 · payroll for the fiscal year ended june 30 , 2016 was lower than for the fiscal year ended june 30 , 2015 primarily as a result of the closure of the new jersey office in november 2014 and subsequent attrition . · · patent costs for the fiscal year ended june 30 , 2016 was lower than for the fiscal year ended june 30 , 2015 primarily as a result of discontinuing patent prosecution services for certain of our patents . · · facility rent for the fiscal year ended june 30 , 2016 was higher than for the fiscal year ended june 30 , 2015 due to relocation of our principal offices to san diego , california in october 2014 . · · depreciation for the fiscal year ended june 30 , 2016 was lower than for the fiscal year ended june 30 , 2015 due to certain assets becoming fully depreciated . · · stock-based compensation for the fiscal year ended june 30 , 2016 was lower than for the fiscal year ended june 30 , 2015 primarily due to fewer options issued during the fiscal year ended june 30 , 2016 combined with the cancellation of options for terminated employees . · · other research and development costs for the fiscal year ended june 30 , 2016 were lower than for the fiscal year ended june 30 , 2015 primarily due to the discontinuation of our clinical programs in 2014 and a reduction in research and development efforts . · · during the fiscal year ended june 30 , 2015 , the phase 1b/2a clinical trial was concluded . the program was subsequently abandoned and all associated costs were written off , including research supplies . no costs associated with the trial were incurred in the fiscal year ended june 30 , 2016 . · · our research contract with the university of waterloo was suspended in 2014 and therefore no costs related to the agreement were incurred in the fiscal year ended june 30 ,

capital resources we did not generate any revenue during the fiscal year ended june 30 , 2017 .. we have not been profitable since inception , we will continue to incur additional operating losses in the future , and we will require additional financing to continue the development and subsequent commercialization of our technology . while we do not expect to generate significant revenues from the licensing of our technology for several years , we may enter into additional licensing or other agreements with marketing and distribution partners that may result in additional license fees , receive revenues from contract research , or other related revenue . financing during the year ended june 30 , 2017 , we received aggregate net proceeds of $ 1,100,000 from the issuance of convertible promissory notes . contractual obligations our contractual obligations as of june 30 , 2017 consist of our month to month facility lease in the amount of $ 3,000 per month : 32 we expect our capital requirements to increase significantly over the next several years as we commence new research and development efforts , increase our business and administrative infrastructure and embark on developing in-house business capabilities and facilities . our future liquidity and capital funding requirements will depend on numerous factors , including , but not limited to , the levels and costs of our research and development initiatives and the cost and timing of the expansion of our business development and administrative staff . we anticipate that , based upon our current cash balance at june 30 , 2017 and the $ 1,500,000 financing we received from opko in partial satisfaction of our financial covenant , which is not subject to closing of the transaction , we will be able to fund our operations through december 31 , 2017. over the next 12 months , in order to fund our research and development we will need to do one or more of the following : · raise capital through the placement of equity or debt instruments · complete the transaction , or · raise capital through the execution of additional licensing agreements for our technology .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 did not generate any revenue during the fiscal year ended june 30 , 2017 .. we have not been profitable since inception , we will continue to incur additional operating losses in the future , and we will require additional financing to continue the development and subsequent commercialization of our technology . while we do not expect to generate significant revenues from the licensing of our technology for several years , we may enter into additional licensing or other agreements with marketing and distribution partners that may result in additional license fees , receive revenues from contract research , or other related revenue . financing during the year ended june 30 , 2017 , we received aggregate net proceeds of $ 1,100,000 from the issuance of convertible promissory notes . contractual obligations our contractual obligations as of june 30 , 2017 consist of our month to month facility lease in the amount of $ 3,000 per month : 32 we expect our capital requirements to increase significantly over the next several years as we commence new research and development efforts , increase our business and administrative infrastructure and embark on developing in-house business capabilities and facilities . our future liquidity and capital funding requirements will depend on numerous factors , including , but not limited to , the levels and costs of our research and development initiatives and the cost and timing of the expansion of our business development and administrative staff . we anticipate that , based upon our current cash balance at june 30 , 2017 and the $ 1,500,000 financing we received from opko in partial satisfaction of our financial covenant , which is not subject to closing of the transaction , we will be able to fund our operations through december 31 , 2017. over the next 12 months , in order to fund our research and development we will need to do one or more of the following : · raise capital through the placement of equity or debt instruments · complete the transaction , or · raise capital through the execution of additional licensing agreements for our technology . ``` Suspicious Activity Report : our preclinical antibody development program comprises an antibody against the ion channel kv1.3 , which is an important molecule in regulating t-cell activation in a number of autoimmune diseases . we have performed experiments showing that this antibody potently blocks activation of human t-cells in vitro . future development efforts will include a phase i clinical trial . consistent with our commercialization strategy , we may license our technology as the opportunities may arise , that may result in additional license fees , revenues from contract research and other related revenues . successful future operations will depend on our and our partners ' ability to transform our research and development activities into a commercially feasible technology . on may 31 , 2017 , we entered into an agreement , or the agreement , which was amended on august 1 , 2017 , with sevion acquisition co. ltd. , an israeli company and our wholly-owned subsidiary , or acquisition subsidiary , and eloxx pharmaceuticals ltd. , an israeli company , or eloxx , pursuant to which eloxx will merge with and into acquisition subsidiary , with eloxx surviving as our wholly-owned subsidiary . we refer to the transaction with eloxx herein as the “ transaction . ” consummation of the transaction is subject to certain closing conditions , including , among other things : ( i ) approval of the transaction by the stockholders of eloxx ; and ( ii ) the successful consummation of separate equity financings resulting in cash investments in our business and eloxx of no less than $ 12,000,000 each , or the financing covenant . pursuant to the agreement , the transaction must close , if it closes , on or prior to december 31 , 2017 , and we will not be entitled to receive any portion of the money that we ultimately raise in fulfillment of our financing covenant unless the transaction closes . 27 on july 28 , 2017 , we received gross proceeds of $ 1,500,000 from opko health , inc. , or opko , one of our existing shareholders , pursuant to a subscription agreement , which we refer to as the subscription agreement , by and among us , eloxx , opko and certain other subscribers that we entered into in connection with the transaction . the funds we received from opko satisfied a portion of our financing covenant . if the transaction does not close , we will not be entitled to keep any portion of the money that we ultimately raise in fulfillment of our financing covenant , with the exception of the $ 1.5 million in gross proceeds we received from opko , which is not conditioned upon closing of the transaction . accordingly , if we do not complete the transaction and are unable to raise additional funds ( apart from any funds we raise in satisfaction of our financing covenant , which funds are conditioned upon closing of the transaction ) , we do not believe that we will have enough cash to continue as a going concern past december 31 , 2017. however , we believe we currently have enough cash to fund operations through december 31 , 2017. critical accounting policies and estimates revenue recognition we record revenue under technology license and development agreements related to the following . actual fees received may vary from the recorded estimated revenues . · nonrefundable upfront license fees that are received in exchange for the transfer of our technology to licensees , for which no further obligations to the licensee exist with respect to the basic technology transferred , are recognized as revenue on the earlier of when payments are received or collections are assured . · nonrefundable upfront license fees that are received in connection with agreements that include time-based payments are , together with the time-based payments , deferred and amortized ratably over the estimated research period of the license . · milestone payments , which are contingent upon the achievement of certain research goals , are recognized as revenue when the milestones , as defined in the particular agreement , are achieved . · direct and indirect costs reimbursed are offset against r & d costs . the effect of any change in revenues from technology license and development agreements would be reflected in revenues in the period such determination was made . historically , no such adjustments have been made . estimates of expenses our research and development agreements with third parties provide for an estimate of our expenses and costs , which are variable and are based on the actual services performed by the third party . we estimate the aggregate amount of the expenses based upon the projected amounts that are set forth in the agreements , and we accrue the expenses for which we have not yet been invoiced or prepay the expenses that have been invoiced but the services have not yet been performed . in estimating the expenses , we consider , among other things , the following factors : · the existence of any prior relationship between us and the third party provider ; · the past results of prior research and development services performed by the third party provider ; and 28 · the scope and timing of the research and development services set forth in the agreement with the third party provider . after the research services are performed and we are invoiced , we make any adjustments that are necessary to accurately report research and development expense for the period . story_separator_special_tag the company recognized an impairment charge of $ 5,780,951 , the balance of the remaining goodwill , for the fiscal year ended june 30 , 2016. impairment of acquired r & d during the fiscal year ended june 30 , 2017 and 2016 , we reviewed acquired r & d for impairment and determined that impairment had occurred as a result of the decrease in the market value of the company for the fiscal years ended june 30 , 2017 and 2016 resulting in the company recognizing an impairment charge of $ 2,600,000 and $ 1,700,000 , respectively . impairment and write-off of patents abandoned during the fiscal year ended june 30 , 2015 , we reviewed our patent portfolio and determined that our agricultural patents were impaired . we also identified several patents and patents pending that we believe we no longer need to maintain without having a material impact on the portfolio . therefore , we wrote-off the net book value of those patents and patents pending in the amount of $ 2,290,836 during fiscal year 2015 . 36 fiscal year ended june 30 , 2016 revenue during the fiscal year ended june 30 , 2016 , revenue in the amount of $ 75,000 represented the amortization of deferred revenue for a collaboration and option agreement . operating expenses replace_table_token_5_th general and administrative expenses general and administrative expenses consist of the following : replace_table_token_6_th · payroll and benefits for the fiscal year ended june 30 , 2016 was lower than for the fiscal year ended june 30 , 2015 as a result of onetime severance payments previously paid to employees terminated in connection with the closing of our new jersey office in november 2014 . · professional fees for the fiscal year ended june 30 , 2016 was higher than for the fiscal year ended june 30 , 2015 as a result of an increase in accounting costs associated with additional bookkeeping , consulting and auditing fees related to our financing efforts in june and july of 2015 . · 37 · stock-based compensation for the fiscal years ended june 30 , 2016 and june 30 , 2015 consisted of the amortized portion of the black-scholes value of options and warrants granted to directors , employees and consultants . during the fiscal years ended june 30 , 2016 and 2015 , 485,682 and 1,203,676 options , respectively , were granted to such individuals . in addition , during the fiscal years ended june 30 , 2016 and 2015 , 195,363 and 556,061 options , respectively , expired or were forfeited . stock-based compensation for the fiscal year ended june 30 , 2016 was lower than the fiscal year ended june 30 , 2015 primarily due to fewer options issued during the fiscal year ended june 30 , 2016 . · · delaware franchise tax decreased for the fiscal year ended june 30 , 2016 from the fiscal year ended june 30 , 2015 as a result of an increase in the computed tax calculation resulting from the reverse stock split and acquisition of fabrus , inc. in may 2014 . · · investor relations fees for the fiscal year ended june 30 , 2016 was lower than for the fiscal year ended june 30 , 2015 as a result of reduced investor relations activity and spending . · · consulting fees for the fiscal year ended june 30 , 2016 were higher than for the fiscal year ended june 30 , 2015 primarily due to our treatment of our ceo as a consultant , as compared to the prior year when our ceo was paid as an employee for the majority of the period . · other general and administrative expenses for the fiscal year ended june 30 , 2016 were lower than for the fiscal year ended june 30 , 2015 due to reduction in employees and reduced operating activity . research and development expenses replace_table_token_7_th 38 · payroll for the fiscal year ended june 30 , 2016 was lower than for the fiscal year ended june 30 , 2015 primarily as a result of the closure of the new jersey office in november 2014 and subsequent attrition . · · patent costs for the fiscal year ended june 30 , 2016 was lower than for the fiscal year ended june 30 , 2015 primarily as a result of discontinuing patent prosecution services for certain of our patents . · · facility rent for the fiscal year ended june 30 , 2016 was higher than for the fiscal year ended june 30 , 2015 due to relocation of our principal offices to san diego , california in october 2014 . · · depreciation for the fiscal year ended june 30 , 2016 was lower than for the fiscal year ended june 30 , 2015 due to certain assets becoming fully depreciated . · · stock-based compensation for the fiscal year ended june 30 , 2016 was lower than for the fiscal year ended june 30 , 2015 primarily due to fewer options issued during the fiscal year ended june 30 , 2016 combined with the cancellation of options for terminated employees . · · other research and development costs for the fiscal year ended june 30 , 2016 were lower than for the fiscal year ended june 30 , 2015 primarily due to the discontinuation of our clinical programs in 2014 and a reduction in research and development efforts . · · during the fiscal year ended june 30 , 2015 , the phase 1b/2a clinical trial was concluded . the program was subsequently abandoned and all associated costs were written off , including research supplies . no costs associated with the trial were incurred in the fiscal year ended june 30 , 2016 . · · our research contract with the university of waterloo was suspended in 2014 and therefore no costs related to the agreement were incurred in the fiscal year ended june 30 ,

a discussion regarding our financial condition and results of operations for the year ended december 31 , 2018 compared to the year ended december 31 , 2017 can be found under item 7 in our annual report on form 10-k for the fiscal year ended december 31 , 2018 , filed with the securities and exchange commission on february 21 , 2019. results of operations for the year ended december 31 , 2019 compared with the year ended december 31 , 2018 in 2019 , the company posted record sales , operating income , net income , diluted earnings per share , orders , backlog and operating cash flow . the company achieved these results from organic sales growth in both eig and emg , contributions from the 2019 acquisitions of gatan and pdt and 2018 acquisitions of spectro scientific , telular , forza , motec and soundcom , as well as from the company 's operational excellence initiatives . 25 the company 's record backlog , the full year impact of the 2019 acquisitions and continued focus on and implementation of operational excellence initiatives are expected to have a positive impact on the company 's 2020 results . net sales for 2019 were $ 5,158.6 million , an increase of $ 312.7 million or 6.5 % , compared with net sales of $ 4,845.9 million in 2018. the increase in net sales for 2019 was due to 2 % organic sales growth , a 5 % increase from acquisitions , partially offset by unfavorable foreign currency translation . eig net sales were $ 3,322.9 million in 2019 , an increase of 9.7 % , compared with $ 3,029.0 million in 2018. emg net sales were $ 1,835.7 million in 2019 , an increase of 1.0 % , compared with $ 1,816.9 million in 2018. total international sales for 2019 were $ 2,474.9 million or 48.0 % of net sales , an increase of $ 26.4 million or 1.1 % , compared with international sales of $ 2,448.5 million or 50.5 % of net sales in 2018. the increase in international sales was primarily driven by recent acquisitions . export shipments from the united states , which are included in total international sales , were $ 1,306.2 million in 2019 , an increase of $ 36.8 million or 2.9 % , compared with $ 1,269.4 million in 2018. orders for 2019 were $ 5,274.3 million , an increase of $ 222.5 million or 4.4 % , compared with $ 5,051.8 million in 2018. the increase in orders for 2019 was driven by the 2018 and 2019 acquisitions . the company 's backlog of unfilled orders at december 31 , 2019 was $ 1,717.9 million , an increase of $ 115.8 million or 7.2 % , compared with $ 1,602.1 million at december 31 , 2018. segment operating income for 2019 was $ 1,253.2 million , an increase of $ 107.3 million or 9.4 % , compared with segment operating income of $ 1,145.9 million in 2018. segment operating income , as a percentage of net sales , increased to 24.3 % in 2019 , compared with 23.6 % in 2018. the increase in segment operating income and segment operating margins for 2019 resulted primarily from the increase in net sales , as well as the benefits of the company 's operational excellence initiatives . cost of sales for 2019 was $ 3,370.9 million or 65.3 % of net sales , an increase of $ 184.6 million or 5.8 % , compared with $ 3,186.3 million or 65.8 % of net sales for 2018. cost of sales increased primarily due to the increase in net sales noted above . selling , general and administrative expenses for 2019 were $ 610.3 million or 11.8 % of net sales , an increase of $ 26.3 million or 4.5 % , compared with $ 584.0 million or 12.1 % of net sales in 2018. selling , general and administrative expenses increased primarily due to the increase in net sales noted above . consolidated operating income was $ 1,177.4 million or 22.8 % of net sales for 2019 , an increase of $ 101.9 million or 9.5 % , compared with $ 1,075.5 million or 22.2 % of net sales in 2018. interest expense was $ 88.5 million for 2019 , an increase of $ 6.3 million or 7.7 % , compared with $ 82.2 million in 2018. the interest expense increase for 2019 was primarily driven by the 2018 private placement senior notes issued in december 2018 ( $ 475 million and 75 million euros ) and january 2019 ( $ 100 million ) , partially offset by a decrease related to the repayment in full , at maturity , of $ 80 million in aggregate principal amount of 6.35 % private placement senior notes and $ 160 million in aggregate principal amount of 7.08 % private placement senior notes in the third quarter of 2018 , $ 65 million in aggregate principal amount of 7.18 % private placement senior notes in the fourth quarter of 2018 , and $ 100 million in aggregate principal amount of 6.03 % private placement senior notes in the fourth quarter of 2019. other expense , net was $ 19.2 million for 2019 , an increase of $ 13.6 million , compared with $ 5.6 million in 2018. the other expense , net increase for 2019 was primarily due to lower defined benefit pension income included in other expenses . 26 the effective tax rate for 2019 was 19.5 % , compared with 21.2 % in 2018. the lower rate for 2019 mainly reflects higher year over year tax benefits related to share-based payment transactions as well as lower tax cost on foreign source income . story_separator_special_tag in order to evaluate the sensitivity of the goodwill impairment test to changes in the fair value calculations , the company applied a hypothetical 10 % decrease in fair values of each reporting unit . the 2019 results ( expressed as a percentage of carrying value for the respective reporting unit ) showed that , despite the hypothetical 10 % decrease in fair value , the fair values of the company 's reporting units still exceeded their respective carrying values by 77 % to 1,074 % for each of the company 's reporting units . the impairment test for indefinite-lived intangibles other than goodwill ( primarily trademarks and trade names ) consists of a comparison of the fair value of the indefinite-lived intangible asset to the carrying value of the asset as of the impairment testing date . the company can elect to perform a qualitative analysis to determine if it is more likely than not that the fair values of its indefinite-lived intangible assets are less than the respective carrying values of those assets . the company elected to bypass performing the qualitative screen . the company may elect to perform the qualitative analysis in future periods . the company estimates the fair value of its indefinite-lived intangibles using the relief from royalty method using level 3 inputs . the company believes the relief from royalty method is a widely used valuation technique for such assets . the fair value derived from the relief from royalty method is measured as the discounted cash flow savings realized from owning such trademarks and trade names and not having to pay a royalty for their use . 32 the company 's acquisitions have generally included a significant goodwill component and the company expects to continue to make acquisitions . at december 31 , 2019 , goodwill and other indefinite-lived intangible assets totaled $ 4,789.4 million or 48.7 % of the company 's total assets . the company completed its required annual impairment tests in the fourth quarter of 2019 and determined that the carrying values of the company 's goodwill and indefinite-lived intangibles were not impaired . there can be no assurance that goodwill or indefinite-lived intangibles impairment will not occur in the future . other intangible assets with finite lives are evaluated for impairment when events or changes in circumstances indicate the carrying value may not be recoverable . the carrying value of other intangible assets with finite lives is considered impaired when the total projected undiscounted cash flows from those assets are separately identifiable and are less than the carrying value . in that event , a loss is recognized based on the amount by which the carrying value exceeds the fair value of those assets . fair value is determined primarily using present value techniques based on projected cash flows from the asset group . pensions . the company has u.s. and foreign defined benefit and defined contribution pension plans . the most significant elements in determining the company 's pension income or expense are the assumed pension liability discount rate and the expected return on plan assets . the pension discount rate reflects the current interest rate at which the pension liabilities could be settled at the valuation date . at the end of each year , the company determines the assumed discount rate to be used to discount plan liabilities . in estimating this rate for 2019 , the company considered rates of return on high-quality , fixed-income investments that have maturities consistent with the anticipated funding requirements of the plan . in estimating the u.s. and foreign discount rates , the company 's actuaries developed a customized discount rate appropriate to the plans ' projected benefit cash flow based on yields derived from a database of long-term bonds at consistent maturity dates . the company determines the expected long-term rate of return based primarily on its expectation of future returns for the pension plans ' investments . additionally , the company considers historical returns on comparable fixed-income and equity investments and adjusts its estimate as deemed appropriate . income taxes . the process of providing for income taxes and determining the related balance sheet accounts requires management to assess uncertainties , make judgments regarding outcomes and utilize estimates . the company conducts a broad range of operations around the world and is therefore subject to complex tax regulations in numerous international taxing jurisdictions , resulting at times in tax audits , disputes and potential litigation , the outcome of which is uncertain . management must make judgments currently about such uncertainties and determine estimates of the company 's tax assets and liabilities . to the extent the final outcome differs , future adjustments to the company 's tax assets and liabilities may be necessary . the company assesses the realizability of its deferred tax assets , taking into consideration the company 's forecast of future taxable income , available net operating loss carryforwards and available tax planning strategies that could be implemented to realize the deferred tax assets . based on this assessment , management must evaluate the need for , and the amount of , valuation allowances against the company 's deferred tax assets . to the extent facts and circumstances change in the future , adjustments to the valuation allowances may be required . the company assesses the uncertainty in its tax positions , by applying a minimum recognition threshold which a tax position is required to meet before a tax benefit is recognized in the financial statements . once the minimum threshold is met , using a more likely than not standard , a series of probability estimates is made for each item to properly measure and record a tax benefit . the tax benefit recorded is generally equal to the highest probable outcome that is more than 50 % likely to be realized after full disclosure and resolution of a tax examination . the underlying probabilities are determined based on the best

liquidity and capital resources cash provided by operating activities totaled $ 1,114.4 million in 2019 , an increase of $ 188.9 million or 20.4 % , compared with $ 925.5 million in 2018. the increase in cash provided by operating activities for 2019 was primarily due to higher net income of $ 83.4 million and lower deferred income taxes . free cash flow ( cash flow provided by operating activities less capital expenditures ) was $ 1,012.1 million in 2019 , compared with $ 843.4 million in 2018. ebitda ( earnings before interest , income taxes , depreciation and amortization ) was $ 1,388.3 million in 2019 , compared with $ 1,267.7 million in 2018. free cash flow and ebitda are presented because the company is aware that they are measures used by third parties in evaluating the company . ( see the “ notes to selected financial data ” included in item 6 in this annual report on form 10-k for a reconciliation of u.s. gaap measures to comparable non-gaap measures ) . cash used for investing activities totaled $ 1,150.9 million in 2019 , compared with $ 1,210.0 million in 2018. in 2019 , the company paid $ 1,061.9 , net of cash acquired , to acquire pdt in september 2019 and gatan in october 2019. in 2018 , the company paid $ 1,129.3 million , net of cash acquired , to acquire spectro scientific in november 2018 , telular and forza in october 2018 , motec in june 2018 , soundcom in april 2018 and fmh in january 2018. additions to property , plant and equipment totaled $ 102.3 million in 2019 , compared with $ 82.1 million in 2018 .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources cash provided by operating activities totaled $ 1,114.4 million in 2019 , an increase of $ 188.9 million or 20.4 % , compared with $ 925.5 million in 2018. the increase in cash provided by operating activities for 2019 was primarily due to higher net income of $ 83.4 million and lower deferred income taxes . free cash flow ( cash flow provided by operating activities less capital expenditures ) was $ 1,012.1 million in 2019 , compared with $ 843.4 million in 2018. ebitda ( earnings before interest , income taxes , depreciation and amortization ) was $ 1,388.3 million in 2019 , compared with $ 1,267.7 million in 2018. free cash flow and ebitda are presented because the company is aware that they are measures used by third parties in evaluating the company . ( see the “ notes to selected financial data ” included in item 6 in this annual report on form 10-k for a reconciliation of u.s. gaap measures to comparable non-gaap measures ) . cash used for investing activities totaled $ 1,150.9 million in 2019 , compared with $ 1,210.0 million in 2018. in 2019 , the company paid $ 1,061.9 , net of cash acquired , to acquire pdt in september 2019 and gatan in october 2019. in 2018 , the company paid $ 1,129.3 million , net of cash acquired , to acquire spectro scientific in november 2018 , telular and forza in october 2018 , motec in june 2018 , soundcom in april 2018 and fmh in january 2018. additions to property , plant and equipment totaled $ 102.3 million in 2019 , compared with $ 82.1 million in 2018 . ``` Suspicious Activity Report : a discussion regarding our financial condition and results of operations for the year ended december 31 , 2018 compared to the year ended december 31 , 2017 can be found under item 7 in our annual report on form 10-k for the fiscal year ended december 31 , 2018 , filed with the securities and exchange commission on february 21 , 2019. results of operations for the year ended december 31 , 2019 compared with the year ended december 31 , 2018 in 2019 , the company posted record sales , operating income , net income , diluted earnings per share , orders , backlog and operating cash flow . the company achieved these results from organic sales growth in both eig and emg , contributions from the 2019 acquisitions of gatan and pdt and 2018 acquisitions of spectro scientific , telular , forza , motec and soundcom , as well as from the company 's operational excellence initiatives . 25 the company 's record backlog , the full year impact of the 2019 acquisitions and continued focus on and implementation of operational excellence initiatives are expected to have a positive impact on the company 's 2020 results . net sales for 2019 were $ 5,158.6 million , an increase of $ 312.7 million or 6.5 % , compared with net sales of $ 4,845.9 million in 2018. the increase in net sales for 2019 was due to 2 % organic sales growth , a 5 % increase from acquisitions , partially offset by unfavorable foreign currency translation . eig net sales were $ 3,322.9 million in 2019 , an increase of 9.7 % , compared with $ 3,029.0 million in 2018. emg net sales were $ 1,835.7 million in 2019 , an increase of 1.0 % , compared with $ 1,816.9 million in 2018. total international sales for 2019 were $ 2,474.9 million or 48.0 % of net sales , an increase of $ 26.4 million or 1.1 % , compared with international sales of $ 2,448.5 million or 50.5 % of net sales in 2018. the increase in international sales was primarily driven by recent acquisitions . export shipments from the united states , which are included in total international sales , were $ 1,306.2 million in 2019 , an increase of $ 36.8 million or 2.9 % , compared with $ 1,269.4 million in 2018. orders for 2019 were $ 5,274.3 million , an increase of $ 222.5 million or 4.4 % , compared with $ 5,051.8 million in 2018. the increase in orders for 2019 was driven by the 2018 and 2019 acquisitions . the company 's backlog of unfilled orders at december 31 , 2019 was $ 1,717.9 million , an increase of $ 115.8 million or 7.2 % , compared with $ 1,602.1 million at december 31 , 2018. segment operating income for 2019 was $ 1,253.2 million , an increase of $ 107.3 million or 9.4 % , compared with segment operating income of $ 1,145.9 million in 2018. segment operating income , as a percentage of net sales , increased to 24.3 % in 2019 , compared with 23.6 % in 2018. the increase in segment operating income and segment operating margins for 2019 resulted primarily from the increase in net sales , as well as the benefits of the company 's operational excellence initiatives . cost of sales for 2019 was $ 3,370.9 million or 65.3 % of net sales , an increase of $ 184.6 million or 5.8 % , compared with $ 3,186.3 million or 65.8 % of net sales for 2018. cost of sales increased primarily due to the increase in net sales noted above . selling , general and administrative expenses for 2019 were $ 610.3 million or 11.8 % of net sales , an increase of $ 26.3 million or 4.5 % , compared with $ 584.0 million or 12.1 % of net sales in 2018. selling , general and administrative expenses increased primarily due to the increase in net sales noted above . consolidated operating income was $ 1,177.4 million or 22.8 % of net sales for 2019 , an increase of $ 101.9 million or 9.5 % , compared with $ 1,075.5 million or 22.2 % of net sales in 2018. interest expense was $ 88.5 million for 2019 , an increase of $ 6.3 million or 7.7 % , compared with $ 82.2 million in 2018. the interest expense increase for 2019 was primarily driven by the 2018 private placement senior notes issued in december 2018 ( $ 475 million and 75 million euros ) and january 2019 ( $ 100 million ) , partially offset by a decrease related to the repayment in full , at maturity , of $ 80 million in aggregate principal amount of 6.35 % private placement senior notes and $ 160 million in aggregate principal amount of 7.08 % private placement senior notes in the third quarter of 2018 , $ 65 million in aggregate principal amount of 7.18 % private placement senior notes in the fourth quarter of 2018 , and $ 100 million in aggregate principal amount of 6.03 % private placement senior notes in the fourth quarter of 2019. other expense , net was $ 19.2 million for 2019 , an increase of $ 13.6 million , compared with $ 5.6 million in 2018. the other expense , net increase for 2019 was primarily due to lower defined benefit pension income included in other expenses . 26 the effective tax rate for 2019 was 19.5 % , compared with 21.2 % in 2018. the lower rate for 2019 mainly reflects higher year over year tax benefits related to share-based payment transactions as well as lower tax cost on foreign source income . story_separator_special_tag in order to evaluate the sensitivity of the goodwill impairment test to changes in the fair value calculations , the company applied a hypothetical 10 % decrease in fair values of each reporting unit . the 2019 results ( expressed as a percentage of carrying value for the respective reporting unit ) showed that , despite the hypothetical 10 % decrease in fair value , the fair values of the company 's reporting units still exceeded their respective carrying values by 77 % to 1,074 % for each of the company 's reporting units . the impairment test for indefinite-lived intangibles other than goodwill ( primarily trademarks and trade names ) consists of a comparison of the fair value of the indefinite-lived intangible asset to the carrying value of the asset as of the impairment testing date . the company can elect to perform a qualitative analysis to determine if it is more likely than not that the fair values of its indefinite-lived intangible assets are less than the respective carrying values of those assets . the company elected to bypass performing the qualitative screen . the company may elect to perform the qualitative analysis in future periods . the company estimates the fair value of its indefinite-lived intangibles using the relief from royalty method using level 3 inputs . the company believes the relief from royalty method is a widely used valuation technique for such assets . the fair value derived from the relief from royalty method is measured as the discounted cash flow savings realized from owning such trademarks and trade names and not having to pay a royalty for their use . 32 the company 's acquisitions have generally included a significant goodwill component and the company expects to continue to make acquisitions . at december 31 , 2019 , goodwill and other indefinite-lived intangible assets totaled $ 4,789.4 million or 48.7 % of the company 's total assets . the company completed its required annual impairment tests in the fourth quarter of 2019 and determined that the carrying values of the company 's goodwill and indefinite-lived intangibles were not impaired . there can be no assurance that goodwill or indefinite-lived intangibles impairment will not occur in the future . other intangible assets with finite lives are evaluated for impairment when events or changes in circumstances indicate the carrying value may not be recoverable . the carrying value of other intangible assets with finite lives is considered impaired when the total projected undiscounted cash flows from those assets are separately identifiable and are less than the carrying value . in that event , a loss is recognized based on the amount by which the carrying value exceeds the fair value of those assets . fair value is determined primarily using present value techniques based on projected cash flows from the asset group . pensions . the company has u.s. and foreign defined benefit and defined contribution pension plans . the most significant elements in determining the company 's pension income or expense are the assumed pension liability discount rate and the expected return on plan assets . the pension discount rate reflects the current interest rate at which the pension liabilities could be settled at the valuation date . at the end of each year , the company determines the assumed discount rate to be used to discount plan liabilities . in estimating this rate for 2019 , the company considered rates of return on high-quality , fixed-income investments that have maturities consistent with the anticipated funding requirements of the plan . in estimating the u.s. and foreign discount rates , the company 's actuaries developed a customized discount rate appropriate to the plans ' projected benefit cash flow based on yields derived from a database of long-term bonds at consistent maturity dates . the company determines the expected long-term rate of return based primarily on its expectation of future returns for the pension plans ' investments . additionally , the company considers historical returns on comparable fixed-income and equity investments and adjusts its estimate as deemed appropriate . income taxes . the process of providing for income taxes and determining the related balance sheet accounts requires management to assess uncertainties , make judgments regarding outcomes and utilize estimates . the company conducts a broad range of operations around the world and is therefore subject to complex tax regulations in numerous international taxing jurisdictions , resulting at times in tax audits , disputes and potential litigation , the outcome of which is uncertain . management must make judgments currently about such uncertainties and determine estimates of the company 's tax assets and liabilities . to the extent the final outcome differs , future adjustments to the company 's tax assets and liabilities may be necessary . the company assesses the realizability of its deferred tax assets , taking into consideration the company 's forecast of future taxable income , available net operating loss carryforwards and available tax planning strategies that could be implemented to realize the deferred tax assets . based on this assessment , management must evaluate the need for , and the amount of , valuation allowances against the company 's deferred tax assets . to the extent facts and circumstances change in the future , adjustments to the valuation allowances may be required . the company assesses the uncertainty in its tax positions , by applying a minimum recognition threshold which a tax position is required to meet before a tax benefit is recognized in the financial statements . once the minimum threshold is met , using a more likely than not standard , a series of probability estimates is made for each item to properly measure and record a tax benefit . the tax benefit recorded is generally equal to the highest probable outcome that is more than 50 % likely to be realized after full disclosure and resolution of a tax examination . the underlying probabilities are determined based on the best

electric utility 's total margin represents total revenues less total cost of sales and electric utility gross receipts taxes , of $ 4.8 million and $ 5.6 million during fiscal 2016 and fiscal 2015 , respectively . gross receipt taxes are included in taxes other than income taxes on the consolidated statements of income . ( b ) deviation from average heating degree days for the 15-year period 2000-2014 based upon weather statistics provided by the national oceanic and atmospheric administration ( “ noaa ” ) for airports located within gas utility 's service territory . ( c ) amounts exclude png gas ' heating , ventilation and air-conditioning service business sold in june 2015 ( see note 16 to consolidated financial statements ) . temperatures in gas utility 's service territory during fiscal 2016 based upon heating degree days were 13.6 % warmer than normal and 17.8 % warmer than fiscal 2015. in particular , gas utility temperatures in the critical heating-season month of december were 37 % warmer than normal . gas utility core market volumes declined 15.1 bcf ( 18.6 % ) reflecting the effects of the significantly warmer weather . total gas utility fiscal 2016 distribution system throughput was about equal to fiscal 2015 as the lower core market volumes were substantially offset by higher large firm delivery service volumes . gas utility 's core market customers comprise firm- residential , commercial and industrial ( “ retail core-market ” ) customers who purchase their gas from gas utility and , to a much lesser extent , residential and small commercial customers who purchase their gas from others . electric utility kilowatt-hour sales were 4.8 % lower than in the prior year principally reflecting the impact of the warmer weather on heating-related sales . ugi utilities revenues decreased $ 273.1 million principally reflecting a $ 255.7 million decrease in gas utility revenues and a $ 16.5 million decrease in electric utility revenues . the lower gas utility revenues principally reflect a decrease in core market revenues ( $ 203.1 million ) and lower off-system sales revenues ( $ 51.4 million ) . the $ 203.1 million decrease in fiscal 2016 gas utility core market revenues reflects the effects of the lower core market throughput ( $ 135.4 million ) and lower average pgc rates ( $ 67.7 million ) . the lower electric utility revenues principally resulted from lower ds rates ( $ 8.0 million ) , lower sales 15 volumes ( $ 5.4 million ) and lower transmission revenue ( $ 2.6 million ) . because gas utility and electric utility are subject to reconcilable pgc and ds recovery mechanisms , increases or decreases in the actual cost of gas or electricity associated with customers who purchase their gas or electricity from ugi utilities impact revenues and cost of sales but have no direct effect on retail core-market margin ( see note 4 to consolidated financial statements for a discussion of these recovery mechanisms ) . ugi utilities cost of sales was $ 289.8 million in fiscal 2016 compared with $ 510.8 million in fiscal 2015 principally reflecting the combined effects of the lower average gas utility pgc rates ( $ 92.3 million ) , lower cost of sales associated with gas utility off-system sales ( $ 51.4 million ) and lower gas utility retail core-market volumes sold ( $ 67.5 million ) . electric utility cost of sales was $ 11.5 million lower reflecting lower ds rates ( $ 8.5 million ) and the lower volumes sold . ugi utilities fiscal 2016 total margin decreased $ 51.3 million principally reflecting lower gas utility total margin from core market customers ( $ 43.3 million ) . the decrease in gas utility core market margin reflects the lower core market throughput . electric utility total margin decreased $ 4.2 million principally reflecting the lower volume sales as a result of the warmer fiscal 2016 weather and the lower transmission revenue . ugi utilities operating income and income before income taxes decreased $ 40.8 million and $ 37.3 million , respectively . the decreases in operating income and income before income taxes principally reflects the decrease in total margin ( $ 51.3 million ) , higher depreciation expense ( $ 4.4 million ) and lower other operating income ( $ 10.9 million ) which includes , among other things , higher environmental matters expense ( $ 4.1 million ) , lower margin from off-system sales ( $ 2.2 million ) , lower revenue from construction services ( $ 2.1 million ) and higher interest on pgc overcollections ( $ 1.1 million ) . these were partially offset by operating and administrative expenses that were $ 25.6 million lower than the prior year primarily reflecting lower net preliminary development stage expenses associated with an information technology ( “ it ” ) project ( $ 8.6 million ) , including the year-over-year impact of the current year capitalization of $ 5.4 million of such it costs expensed in prior years ( see note 4 to consolidated financial statements ) , and , to a lesser extent , lower uncollectible accounts ( $ 5.7 million ) , system maintenance expenses ( $ 4.8 million ) and employee benefits ( $ 4.7 million ) . interest expense and income taxes . our interest expense in fiscal 2016 was $ 3.5 million lower than in fiscal 2015 principally reflecting ugi utilities ' lower average long-term debt outstanding and lower average interest rates . our effective income tax rate in fiscal 2016 was slightly higher than in the prior year . fiscal 2015 compared with fiscal 2014 replace_table_token_1_th ( a ) gas utility 's total margin represents total revenues less total cost of sales . electric utility 's total margin represents total revenues less total cost of sales and electric utility gross receipts taxes , of $ 5.6 million and $ 5.8 million during fiscal 2015 and fiscal 2014 , respectively . story_separator_special_tag ugi utilities also transferred certain associated storage inventories upon the commencement of the scaas , receives a transfer of storage inventories at the end of the scaas , and makes payments associated with refilling storage inventories during the term of the scaas . energy services , in turn , provides a firm delivery service and makes certain payments to ugi utilities for its various obligations under the scaas . during fiscal 2016 , fiscal 2015 and fiscal 2014 , these payments were not material . ugi utilities incurred costs associated with energy services ' scaas totaling $ 12.7 million , $ 16.8 million and $ 38.3 million in fiscal 2016 , fiscal 2015 and fiscal 2014 , respectively . in conjunction with the scaas , ugi utilities received security deposits from energy services . the amounts of such security deposits , which are included in other current liabilities on the consolidated balance sheets , were $ 8.1 million and $ 10.7 million at september 30 , 2016 and 2015 , respectively . ugi utilities reflects the historical cost of the gas storage inventories and any exchange receivable from energy services ( representing amounts of natural gas inventories used but not yet replenished by energy services ) on its balance sheet under the caption inventories . the carrying values of these gas storage inventories at september 30 , 2016 and 2015 , comprising approximately 4.6 bcf and 5.0 bcf of natural gas , were $ 11.1 million and $ 12.9 million , respectively . ugi utilities has gas supply and delivery service agreements with energy services pursuant to which energy services provides certain gas supply and related delivery service to gas utility primarily during the heating season months of november through march . the aggregate amount of these transactions ( exclusive of transactions pursuant to the scaas ) during fiscal 2016 , fiscal 2015 and fiscal 2014 totaled $ 63.3 million , $ 47.8 million and $ 35.8 million , respectively . 21 from time to time , the company sells natural gas or pipeline capacity to energy services . during fiscal 2016 , fiscal 2015 and fiscal 2014 , revenues associated with sales to energy services totaled $ 30.7 million , $ 79.2 million and $ 109.9 million , respectively . also from time to time , the company purchases natural gas , pipeline capacity and electricity from energy services ( in addition to those transactions already described above ) and purchases a firm storage service from ugi storage company , a subsidiary of energy services , under one-year agreements . during fiscal 2016 , fiscal 2015 and fiscal 2014 , such purchases totaled $ 35.1 million , $ 85.4 million and $ 128.1 million , respectively . off-balance-sheet arrangements we do not have any off-balance-sheet arrangements that are expected to have an effect on the company 's financial condition , revenues and expenses , results of operations , liquidity , capital expenditures or capital resources . market risk disclosures our primary market risk exposures are ( 1 ) commodity price risk and ( 2 ) interest rate risk . although we use derivative financial and commodity instruments to reduce market price risk associated with forecasted transactions , we do not use derivative financial and commodity instruments for speculative or trading purposes . commodity price risk gas utility 's tariffs contain clauses that permit recovery of all of the prudently incurred costs of natural gas it sells to its retail core-market customers , including the cost of financial instruments used to hedge purchased gas costs . the recovery clauses provide for periodic adjustments for the difference between the total amounts actually collected from customers through pgc rates and the recoverable costs incurred . because of this ratemaking mechanism , there is limited commodity price risk associated with our gas utility operations . gas utility uses derivative financial instruments including natural gas futures and option contracts traded on the new york mercantile exchange ( “ nymex ” ) to reduce volatility in the cost of gas it purchases for its retail core-market customers . the cost of these derivative financial instruments , net of any associated gains or losses , is included in gas utility 's pgc recovery mechanism . the change in market value of natural gas futures contracts can require daily deposits of cash in futures accounts . at september 30 , 2016 and 2015 , gas utility had $ 0.6 million and $ 6.6 million of restricted cash in brokerage accounts , respectively . at september 30 , 2016 and 2015 , the fair values of our natural gas futures and option contracts were gains and ( losses ) of $ 4.3 million and $ ( 3.3 ) million , respectively . electric utility 's ds tariffs contain clauses which permit recovery of all prudently incurred power costs , including the cost of financial instruments used to hedge electricity costs , through the application of ds rates . because of this ratemaking mechanism , there is limited power cost risk , including the cost of financial transmission rights ( “ ftrs ” ) and forward electricity purchase contracts , associated with our electric utility operations . at september 30 , 2016 , all of our electric utility 's forward electricity purchase contracts were subject to the normal purchase and normal sale ( “ npns ” ) exception . in addition , gas utility and electric utility from time to time enter into exchange-traded gasoline futures contracts for a portion of gasoline volumes expected to be used in their operations . these gasoline futures contracts are recorded at fair value with changes in fair value reflected in operating expenses and other income . the amount of unrealized gains on these contracts and associated volumes under contract at september 30 , 2016 and 2015 , were not material . interest rate risk we have both fixed-rate debt and variable rate debt . changes in interest rates impact the cash flows

capitalization and liquidity ugi utilities ' total debt outstanding was $ 783.9 million at september 30 , 2016 , which includes $ 112.5 million of short-term borrowings , compared with total debt outstanding of $ 691.5 million at september 30 , 2015 , which includes $ 71.7 million of short-term borrowings . ugi utilities ' total long-term debt outstanding at september 30 , 2016 , comprises $ 575.0 million of senior notes and $ 100.0 million of medium-term notes , and is net of $ 3.6 million of unamortized debt issuance costs . in april 2016 , ugi utilities entered into a note purchase agreement ( the “ 2016 note purchase agreement ” ) with a consortium of lenders . pursuant to the 2016 note purchase agreement , ugi utilities issued $ 100 million aggregate principal amount of 2.95 % senior notes due june 2026 and $ 200 million aggregate principal amount of 4.12 % senior notes due september 2046 in june 2016 and september 2016 , respectively . in october 2016 , ugi utilities issued $ 100 million aggregate principal amount of 4.12 % senior notes due in october 2046. the net proceeds of the issuance of these senior notes were used 1 ) to repay ugi utilities ' maturing 5.75 % senior notes , 7.37 % medium-term notes and 5.64 % medium-term notes ; 2 ) to provide additional financing for ugi utilities ' infrastructure replacement and betterment capital program and information technology initiatives ; and 3 ) for general corporate purposes . 17 ugi utilities has a credit agreement ( the “ credit agreement ” ) with a group of banks providing for borrowings of up to $ 300 million ( including a $ 100 million sublimit for letters of credit ) which expires in march 2020. borrowings under the credit agreement are classified as short-term borrowings on the consolidated balance sheets . during fiscal 2016 and fiscal 2015 , average daily short-term borrowings under the credit agreement were $ 150.8 million and $ 61.7 million , respectively , and peak short-term borrowings totaled $ 232.0 million and $ 163.6 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. ```capitalization and liquidity ugi utilities ' total debt outstanding was $ 783.9 million at september 30 , 2016 , which includes $ 112.5 million of short-term borrowings , compared with total debt outstanding of $ 691.5 million at september 30 , 2015 , which includes $ 71.7 million of short-term borrowings . ugi utilities ' total long-term debt outstanding at september 30 , 2016 , comprises $ 575.0 million of senior notes and $ 100.0 million of medium-term notes , and is net of $ 3.6 million of unamortized debt issuance costs . in april 2016 , ugi utilities entered into a note purchase agreement ( the “ 2016 note purchase agreement ” ) with a consortium of lenders . pursuant to the 2016 note purchase agreement , ugi utilities issued $ 100 million aggregate principal amount of 2.95 % senior notes due june 2026 and $ 200 million aggregate principal amount of 4.12 % senior notes due september 2046 in june 2016 and september 2016 , respectively . in october 2016 , ugi utilities issued $ 100 million aggregate principal amount of 4.12 % senior notes due in october 2046. the net proceeds of the issuance of these senior notes were used 1 ) to repay ugi utilities ' maturing 5.75 % senior notes , 7.37 % medium-term notes and 5.64 % medium-term notes ; 2 ) to provide additional financing for ugi utilities ' infrastructure replacement and betterment capital program and information technology initiatives ; and 3 ) for general corporate purposes . 17 ugi utilities has a credit agreement ( the “ credit agreement ” ) with a group of banks providing for borrowings of up to $ 300 million ( including a $ 100 million sublimit for letters of credit ) which expires in march 2020. borrowings under the credit agreement are classified as short-term borrowings on the consolidated balance sheets . during fiscal 2016 and fiscal 2015 , average daily short-term borrowings under the credit agreement were $ 150.8 million and $ 61.7 million , respectively , and peak short-term borrowings totaled $ 232.0 million and $ 163.6 million , respectively . ``` Suspicious Activity Report : electric utility 's total margin represents total revenues less total cost of sales and electric utility gross receipts taxes , of $ 4.8 million and $ 5.6 million during fiscal 2016 and fiscal 2015 , respectively . gross receipt taxes are included in taxes other than income taxes on the consolidated statements of income . ( b ) deviation from average heating degree days for the 15-year period 2000-2014 based upon weather statistics provided by the national oceanic and atmospheric administration ( “ noaa ” ) for airports located within gas utility 's service territory . ( c ) amounts exclude png gas ' heating , ventilation and air-conditioning service business sold in june 2015 ( see note 16 to consolidated financial statements ) . temperatures in gas utility 's service territory during fiscal 2016 based upon heating degree days were 13.6 % warmer than normal and 17.8 % warmer than fiscal 2015. in particular , gas utility temperatures in the critical heating-season month of december were 37 % warmer than normal . gas utility core market volumes declined 15.1 bcf ( 18.6 % ) reflecting the effects of the significantly warmer weather . total gas utility fiscal 2016 distribution system throughput was about equal to fiscal 2015 as the lower core market volumes were substantially offset by higher large firm delivery service volumes . gas utility 's core market customers comprise firm- residential , commercial and industrial ( “ retail core-market ” ) customers who purchase their gas from gas utility and , to a much lesser extent , residential and small commercial customers who purchase their gas from others . electric utility kilowatt-hour sales were 4.8 % lower than in the prior year principally reflecting the impact of the warmer weather on heating-related sales . ugi utilities revenues decreased $ 273.1 million principally reflecting a $ 255.7 million decrease in gas utility revenues and a $ 16.5 million decrease in electric utility revenues . the lower gas utility revenues principally reflect a decrease in core market revenues ( $ 203.1 million ) and lower off-system sales revenues ( $ 51.4 million ) . the $ 203.1 million decrease in fiscal 2016 gas utility core market revenues reflects the effects of the lower core market throughput ( $ 135.4 million ) and lower average pgc rates ( $ 67.7 million ) . the lower electric utility revenues principally resulted from lower ds rates ( $ 8.0 million ) , lower sales 15 volumes ( $ 5.4 million ) and lower transmission revenue ( $ 2.6 million ) . because gas utility and electric utility are subject to reconcilable pgc and ds recovery mechanisms , increases or decreases in the actual cost of gas or electricity associated with customers who purchase their gas or electricity from ugi utilities impact revenues and cost of sales but have no direct effect on retail core-market margin ( see note 4 to consolidated financial statements for a discussion of these recovery mechanisms ) . ugi utilities cost of sales was $ 289.8 million in fiscal 2016 compared with $ 510.8 million in fiscal 2015 principally reflecting the combined effects of the lower average gas utility pgc rates ( $ 92.3 million ) , lower cost of sales associated with gas utility off-system sales ( $ 51.4 million ) and lower gas utility retail core-market volumes sold ( $ 67.5 million ) . electric utility cost of sales was $ 11.5 million lower reflecting lower ds rates ( $ 8.5 million ) and the lower volumes sold . ugi utilities fiscal 2016 total margin decreased $ 51.3 million principally reflecting lower gas utility total margin from core market customers ( $ 43.3 million ) . the decrease in gas utility core market margin reflects the lower core market throughput . electric utility total margin decreased $ 4.2 million principally reflecting the lower volume sales as a result of the warmer fiscal 2016 weather and the lower transmission revenue . ugi utilities operating income and income before income taxes decreased $ 40.8 million and $ 37.3 million , respectively . the decreases in operating income and income before income taxes principally reflects the decrease in total margin ( $ 51.3 million ) , higher depreciation expense ( $ 4.4 million ) and lower other operating income ( $ 10.9 million ) which includes , among other things , higher environmental matters expense ( $ 4.1 million ) , lower margin from off-system sales ( $ 2.2 million ) , lower revenue from construction services ( $ 2.1 million ) and higher interest on pgc overcollections ( $ 1.1 million ) . these were partially offset by operating and administrative expenses that were $ 25.6 million lower than the prior year primarily reflecting lower net preliminary development stage expenses associated with an information technology ( “ it ” ) project ( $ 8.6 million ) , including the year-over-year impact of the current year capitalization of $ 5.4 million of such it costs expensed in prior years ( see note 4 to consolidated financial statements ) , and , to a lesser extent , lower uncollectible accounts ( $ 5.7 million ) , system maintenance expenses ( $ 4.8 million ) and employee benefits ( $ 4.7 million ) . interest expense and income taxes . our interest expense in fiscal 2016 was $ 3.5 million lower than in fiscal 2015 principally reflecting ugi utilities ' lower average long-term debt outstanding and lower average interest rates . our effective income tax rate in fiscal 2016 was slightly higher than in the prior year . fiscal 2015 compared with fiscal 2014 replace_table_token_1_th ( a ) gas utility 's total margin represents total revenues less total cost of sales . electric utility 's total margin represents total revenues less total cost of sales and electric utility gross receipts taxes , of $ 5.6 million and $ 5.8 million during fiscal 2015 and fiscal 2014 , respectively . story_separator_special_tag ugi utilities also transferred certain associated storage inventories upon the commencement of the scaas , receives a transfer of storage inventories at the end of the scaas , and makes payments associated with refilling storage inventories during the term of the scaas . energy services , in turn , provides a firm delivery service and makes certain payments to ugi utilities for its various obligations under the scaas . during fiscal 2016 , fiscal 2015 and fiscal 2014 , these payments were not material . ugi utilities incurred costs associated with energy services ' scaas totaling $ 12.7 million , $ 16.8 million and $ 38.3 million in fiscal 2016 , fiscal 2015 and fiscal 2014 , respectively . in conjunction with the scaas , ugi utilities received security deposits from energy services . the amounts of such security deposits , which are included in other current liabilities on the consolidated balance sheets , were $ 8.1 million and $ 10.7 million at september 30 , 2016 and 2015 , respectively . ugi utilities reflects the historical cost of the gas storage inventories and any exchange receivable from energy services ( representing amounts of natural gas inventories used but not yet replenished by energy services ) on its balance sheet under the caption inventories . the carrying values of these gas storage inventories at september 30 , 2016 and 2015 , comprising approximately 4.6 bcf and 5.0 bcf of natural gas , were $ 11.1 million and $ 12.9 million , respectively . ugi utilities has gas supply and delivery service agreements with energy services pursuant to which energy services provides certain gas supply and related delivery service to gas utility primarily during the heating season months of november through march . the aggregate amount of these transactions ( exclusive of transactions pursuant to the scaas ) during fiscal 2016 , fiscal 2015 and fiscal 2014 totaled $ 63.3 million , $ 47.8 million and $ 35.8 million , respectively . 21 from time to time , the company sells natural gas or pipeline capacity to energy services . during fiscal 2016 , fiscal 2015 and fiscal 2014 , revenues associated with sales to energy services totaled $ 30.7 million , $ 79.2 million and $ 109.9 million , respectively . also from time to time , the company purchases natural gas , pipeline capacity and electricity from energy services ( in addition to those transactions already described above ) and purchases a firm storage service from ugi storage company , a subsidiary of energy services , under one-year agreements . during fiscal 2016 , fiscal 2015 and fiscal 2014 , such purchases totaled $ 35.1 million , $ 85.4 million and $ 128.1 million , respectively . off-balance-sheet arrangements we do not have any off-balance-sheet arrangements that are expected to have an effect on the company 's financial condition , revenues and expenses , results of operations , liquidity , capital expenditures or capital resources . market risk disclosures our primary market risk exposures are ( 1 ) commodity price risk and ( 2 ) interest rate risk . although we use derivative financial and commodity instruments to reduce market price risk associated with forecasted transactions , we do not use derivative financial and commodity instruments for speculative or trading purposes . commodity price risk gas utility 's tariffs contain clauses that permit recovery of all of the prudently incurred costs of natural gas it sells to its retail core-market customers , including the cost of financial instruments used to hedge purchased gas costs . the recovery clauses provide for periodic adjustments for the difference between the total amounts actually collected from customers through pgc rates and the recoverable costs incurred . because of this ratemaking mechanism , there is limited commodity price risk associated with our gas utility operations . gas utility uses derivative financial instruments including natural gas futures and option contracts traded on the new york mercantile exchange ( “ nymex ” ) to reduce volatility in the cost of gas it purchases for its retail core-market customers . the cost of these derivative financial instruments , net of any associated gains or losses , is included in gas utility 's pgc recovery mechanism . the change in market value of natural gas futures contracts can require daily deposits of cash in futures accounts . at september 30 , 2016 and 2015 , gas utility had $ 0.6 million and $ 6.6 million of restricted cash in brokerage accounts , respectively . at september 30 , 2016 and 2015 , the fair values of our natural gas futures and option contracts were gains and ( losses ) of $ 4.3 million and $ ( 3.3 ) million , respectively . electric utility 's ds tariffs contain clauses which permit recovery of all prudently incurred power costs , including the cost of financial instruments used to hedge electricity costs , through the application of ds rates . because of this ratemaking mechanism , there is limited power cost risk , including the cost of financial transmission rights ( “ ftrs ” ) and forward electricity purchase contracts , associated with our electric utility operations . at september 30 , 2016 , all of our electric utility 's forward electricity purchase contracts were subject to the normal purchase and normal sale ( “ npns ” ) exception . in addition , gas utility and electric utility from time to time enter into exchange-traded gasoline futures contracts for a portion of gasoline volumes expected to be used in their operations . these gasoline futures contracts are recorded at fair value with changes in fair value reflected in operating expenses and other income . the amount of unrealized gains on these contracts and associated volumes under contract at september 30 , 2016 and 2015 , were not material . interest rate risk we have both fixed-rate debt and variable rate debt . changes in interest rates impact the cash flows

please refer to part i , item 2 , properties , of this report for further discussion on any updates at our principal producing and development properties . 36 operators ' production estimate by royalty for calendar year 2013 and reported production principal producing properties for the period january 1 , 2013 through june 30 , 2013 replace_table_token_15_th ( 1 ) there can be no assurance that production estimates received from our operators will be achieved . please refer to our cautionary language regarding forward-looking statements following this md & a , as well as the risk factors identified in part i , item 1a , of this report for information regarding factors that could affect actual results . ( 2 ) reported production relates to the amount of metal sales , subject to our royalty interests , for the period january 1 , 2013 through june 30 , 2013 , as reported to us by the operators of the mines . ( 3 ) the company did not receive calendar 2013 production guidance from the operator . 37 historical production the following table discloses historical production for the past three fiscal years for the principal producing properties that are subject to our royalty interests , as reported to us by the operators of the mines : historical production ( 1 ) by royalty principal producing properties for the fiscal years ended june 30 , 2013 , 2012 and 2011 replace_table_token_16_th ( 1 ) historical production relates to the amount of metal sales , subject to our royalty interests for each fiscal year presented , as reported to us by the operators of the mines . critical accounting policies listed below are the accounting policies that the company believes are critical to its financial statements due to the degree of uncertainty regarding the estimates or assumptions involved and the magnitude of the asset , liability , revenue or expense being reported . please refer to note 2 of the notes to consolidated financial statements for a discussion on recently adopted accounting pronouncements . use of estimates the preparation of our financial statements , in conformity with accounting principles generally accepted in the united states of america , requires management to make estimates and assumptions . these estimates and assumptions affect the reported amounts of assets and liabilities , at the date of the financial statements , as well as the reported amounts of revenues and expenses during the reporting period . 38 our most critical accounting estimates relate to our assumptions regarding future gold , silver , nickel , copper and other metal prices and the estimates of reserves and recoveries of third-party mine operators . we rely on reserve estimates reported by the operators on the properties in which we have royalty interests . these estimates and the underlying assumptions affect the potential impairments of long-lived assets and the ability to realize income tax benefits associated with deferred tax assets . these estimates and assumptions also affect the rate at which we charge depreciation , depletion and amortization to earnings . on an ongoing basis , management evaluates these estimates and assumptions ; however , actual amounts could differ from these estimates and assumptions . royalty interests in mineral properties royalty interests in mineral properties include acquired royalty interests in production , development and exploration stage properties . the costs of acquired royalty interests in mineral properties are capitalized as tangible assets as such interests do not meet the definition of a financial asset under the accounting standards codification ( `` asc `` ) guidance . acquisition costs of production stage royalty interests are depleted using the units of production method over the life of the mineral property , which is estimated using proven and probable reserves as provided by the operator . acquisition costs of royalty interests on development stage mineral properties , which are not yet in production , are not amortized until the property begins production . acquisition costs of royalty interests on exploration stage mineral properties , where there are no proven and probable reserves , are not amortized . at such time as the associated exploration stage mineral interests are converted to proven and probable reserves , the cost basis is amortized over the remaining life of the mineral property , using proven and probable reserves . the carrying values of exploration stage mineral interests are evaluated for impairment at such time as information becomes available indicating that the production will not occur in the future . exploration costs are expensed when incurred . asset impairment we evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the related carrying amounts of an asset or group of assets may not be recoverable . the recoverability of the carrying value of royalty interests in production and development stage mineral properties is evaluated based upon estimated future undiscounted net cash flows from each royalty interest property using estimates of proven and probable reserves and other relevant information received from the operators . we evaluate the recoverability of the carrying value of royalty interests in exploration stage mineral properties in the event of significant decreases in the price of gold , silver , copper , nickel and other metals , and whenever new information regarding the mineral properties is obtained from the operator indicating that production will not likely occur or may be reduced in the future , thus affecting the future recoverability of our royalty interests . impairments in the carrying value of each property are measured and recorded to the extent that the carrying value in each property exceeds its estimated fair value , which is generally calculated using estimated future discounted cash flows . story_separator_special_tag fiscal year ended june 30 , 2012 , compared with fiscal year ended june 30 , 2011 for the fiscal year ended june 30 , 2012 , we recorded net income available to royal gold common stockholders of $ 92.5 million , or $ 1.61 per basic share and diluted share , compared to net income available to royal gold common stockholders of $ 71.4 million , or $ 1.29 per basic and diluted share , for the fiscal year ended june 30 , 2011. the increase in our earnings per share was primarily attributable to an increase in royalty revenue , as discussed further below . this increase was partially offset by an increase in production taxes , depletion expense , income tax expense and the royalty restructuring charge during the period , each of which are discussed further below . for fiscal year ended june 30 , 2012 , we recognized total royalty revenue of $ 263.1 million , at an average gold price of $ 1,673 per ounce , an average silver price of $ 33.26 per ounce , an average nickel 46 price of $ 8.77 per pound and an average copper price of $ 3.71 per pound , compared to total royalty revenue of $ 216.5 million , at an average gold price of $ 1,369 per ounce , an average silver price of $ 28.61 per ounce , an average nickel price of $ 10.86 per pound and an average copper price of $ 3.92 per pound , for fiscal year ended june 30 , 2011. royalty revenue and the corresponding production , attributable to our royalty interests , for the fiscal year ended june 30 , 2012 compared to the fiscal year ended june 30 , 2011 is as follows : royalty revenue and production subject to our royalty interests fiscal years ended june 30 , 2012 and 2011 ( in thousands , except reported production in ozs . and lbs . ) replace_table_token_19_th ( 1 ) reported production relates to the amount of metal sales , subject to our royalty interests , for the twelve months ended june 30 , 2012 and june 30 , 2011 , as reported to us by the operators of the mines . ( 2 ) individually , no royalty included within the `` other `` category contributed greater than 5 % of our total royalty revenue for either period . the increase in royalty revenue for the fiscal year ended june 30 , 2012 , compared with the fiscal year ended june 30 , 2011 , resulted primarily from an increase in the average gold and silver prices , increased reported production at andacollo , voisey 's bay , mulatos and dolores , the continued ramp-up 47 at peñasquito , holt , las cruces , canadian malartic and wolverine . these increases were partially offset during the period due to decreases in reported production at cortez , leeville and robinson . refer to part i , item 2 , properties , for discussion and any updates on our principal producing properties . depreciation , depletion and amortization expense increased to $ 75.0 million for the fiscal year ended june 30 , 2012 , from $ 67.4 million for the fiscal year ended june 30 , 2011. the increase was primarily attributable to an increase in production at andacollo , voisey 's bay and las cruces , which resulted in additional depletion expense of approximately $ 8.3 million during the period . the increase was also attributable to the continued ramp-up at holt and canadian malartic , which resulted in additional depletion expense of approximately $ 4.3 million during the period . these increases were partially offset by a decrease in depletion at taparko of approximately $ 4.3 million , which was due to the dollar cap being met during fiscal year 2011. during the fiscal year ended june 30 , 2012 , we recognized income tax expense totaling $ 54.7 million compared with $ 39.0 million during the fiscal year ended june 30 , 2011. this resulted in an effective tax rate of 35.8 % during the current period , compared with 33.5 % in the prior period . the increase in the effective tax rate for the twelve months ended june 30 , 2012 is primarily related to an increase in tax expense and valuation allowances related to earnings from non-u.s. subsidiaries offset by a decrease in tax expense associated with the decrease in foreign currency exchange gains and the effect of excess depletion . forward-looking statements cautionary `` safe harbor `` statement under the private securities litigation reform act of 1995 : with the exception of historical matters , the matters discussed in this annual report on form 10-k are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from projections or estimates contained herein . such forward-looking statements include , without limitation , statements regarding projected production estimates and estimates pertaining to timing and commencement of production from the operators of properties where we hold royalty interests ; the adequacy of financial resources and funds to cover anticipated expenditures for general and administrative expenses as well as costs associated with exploration and business development and capital expenditures , and our expectation that substantially all our revenues will be derived from royalty interests . words such as `` may , `` `` could , `` `` should , `` `` would , `` `` believe , `` `` estimate , `` `` expect , `` `` anticipate , `` `` plan , `` `` forecast , `` `` potential , `` `` intend , `` `` continue , `` `` project `` and variations of these words , comparable words and similar expressions generally indicate forward-looking statements , which speak only as of the date the statement is made . do not unduly rely on forward-looking statements . actual results may differ materially from those expressed or implied

liquidity and capital resources overview at june 30 , 2013 , we had current assets of $ 744.5 million compared to current liabilities of $ 35.1 million for a current ratio of 21 to 1. this compares to current assets of $ 445.2 million and current liabilities of $ 15.2 million at june 30 , 2012 , resulting in a current ratio of approximately 29 to 1. the decrease in our current ratio was primarily attributable to an increase in the amount of foreign withholding taxes payable on certain of our foreign royalty interests . the increase in our foreign withholding taxes payable was partially offset by an increase in our cash and equivalents during the period due to our october 2012 common stock offering as discussed below . during the fiscal year ended june 30 , 2013 , liquidity needs were met from $ 289.2 million in royalty revenues and our available cash resources . as of june 30 , 2013 , the company had $ 350 million available and no amounts outstanding under its revolving credit facility . the company was in 41 compliance with each financial covenant under its revolving credit facility as of june 30 , 2013. refer to note 6 of our notes to consolidated financial statements for further discussion on our debt . we believe that our current financial resources and funds generated from operations will be adequate to cover anticipated expenditures for debt service , general and administrative expense costs , exploration costs and capital expenditures for the foreseeable future . our current financial resources are also available to fund dividends and for acquisitions of royalty interests , including the remaining commitments incurred in connection with the mt . milligan and tulsequah chief acquisitions . our long-term capital requirements are primarily affected by our ongoing acquisition activities . the company currently , and generally at any time , has acquisition opportunities in various stages of active review . in the event of one or more substantial royalty interest or other acquisitions , we may seek additional debt or equity financing as necessary .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources overview at june 30 , 2013 , we had current assets of $ 744.5 million compared to current liabilities of $ 35.1 million for a current ratio of 21 to 1. this compares to current assets of $ 445.2 million and current liabilities of $ 15.2 million at june 30 , 2012 , resulting in a current ratio of approximately 29 to 1. the decrease in our current ratio was primarily attributable to an increase in the amount of foreign withholding taxes payable on certain of our foreign royalty interests . the increase in our foreign withholding taxes payable was partially offset by an increase in our cash and equivalents during the period due to our october 2012 common stock offering as discussed below . during the fiscal year ended june 30 , 2013 , liquidity needs were met from $ 289.2 million in royalty revenues and our available cash resources . as of june 30 , 2013 , the company had $ 350 million available and no amounts outstanding under its revolving credit facility . the company was in 41 compliance with each financial covenant under its revolving credit facility as of june 30 , 2013. refer to note 6 of our notes to consolidated financial statements for further discussion on our debt . we believe that our current financial resources and funds generated from operations will be adequate to cover anticipated expenditures for debt service , general and administrative expense costs , exploration costs and capital expenditures for the foreseeable future . our current financial resources are also available to fund dividends and for acquisitions of royalty interests , including the remaining commitments incurred in connection with the mt . milligan and tulsequah chief acquisitions . our long-term capital requirements are primarily affected by our ongoing acquisition activities . the company currently , and generally at any time , has acquisition opportunities in various stages of active review . in the event of one or more substantial royalty interest or other acquisitions , we may seek additional debt or equity financing as necessary . ``` Suspicious Activity Report : please refer to part i , item 2 , properties , of this report for further discussion on any updates at our principal producing and development properties . 36 operators ' production estimate by royalty for calendar year 2013 and reported production principal producing properties for the period january 1 , 2013 through june 30 , 2013 replace_table_token_15_th ( 1 ) there can be no assurance that production estimates received from our operators will be achieved . please refer to our cautionary language regarding forward-looking statements following this md & a , as well as the risk factors identified in part i , item 1a , of this report for information regarding factors that could affect actual results . ( 2 ) reported production relates to the amount of metal sales , subject to our royalty interests , for the period january 1 , 2013 through june 30 , 2013 , as reported to us by the operators of the mines . ( 3 ) the company did not receive calendar 2013 production guidance from the operator . 37 historical production the following table discloses historical production for the past three fiscal years for the principal producing properties that are subject to our royalty interests , as reported to us by the operators of the mines : historical production ( 1 ) by royalty principal producing properties for the fiscal years ended june 30 , 2013 , 2012 and 2011 replace_table_token_16_th ( 1 ) historical production relates to the amount of metal sales , subject to our royalty interests for each fiscal year presented , as reported to us by the operators of the mines . critical accounting policies listed below are the accounting policies that the company believes are critical to its financial statements due to the degree of uncertainty regarding the estimates or assumptions involved and the magnitude of the asset , liability , revenue or expense being reported . please refer to note 2 of the notes to consolidated financial statements for a discussion on recently adopted accounting pronouncements . use of estimates the preparation of our financial statements , in conformity with accounting principles generally accepted in the united states of america , requires management to make estimates and assumptions . these estimates and assumptions affect the reported amounts of assets and liabilities , at the date of the financial statements , as well as the reported amounts of revenues and expenses during the reporting period . 38 our most critical accounting estimates relate to our assumptions regarding future gold , silver , nickel , copper and other metal prices and the estimates of reserves and recoveries of third-party mine operators . we rely on reserve estimates reported by the operators on the properties in which we have royalty interests . these estimates and the underlying assumptions affect the potential impairments of long-lived assets and the ability to realize income tax benefits associated with deferred tax assets . these estimates and assumptions also affect the rate at which we charge depreciation , depletion and amortization to earnings . on an ongoing basis , management evaluates these estimates and assumptions ; however , actual amounts could differ from these estimates and assumptions . royalty interests in mineral properties royalty interests in mineral properties include acquired royalty interests in production , development and exploration stage properties . the costs of acquired royalty interests in mineral properties are capitalized as tangible assets as such interests do not meet the definition of a financial asset under the accounting standards codification ( `` asc `` ) guidance . acquisition costs of production stage royalty interests are depleted using the units of production method over the life of the mineral property , which is estimated using proven and probable reserves as provided by the operator . acquisition costs of royalty interests on development stage mineral properties , which are not yet in production , are not amortized until the property begins production . acquisition costs of royalty interests on exploration stage mineral properties , where there are no proven and probable reserves , are not amortized . at such time as the associated exploration stage mineral interests are converted to proven and probable reserves , the cost basis is amortized over the remaining life of the mineral property , using proven and probable reserves . the carrying values of exploration stage mineral interests are evaluated for impairment at such time as information becomes available indicating that the production will not occur in the future . exploration costs are expensed when incurred . asset impairment we evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the related carrying amounts of an asset or group of assets may not be recoverable . the recoverability of the carrying value of royalty interests in production and development stage mineral properties is evaluated based upon estimated future undiscounted net cash flows from each royalty interest property using estimates of proven and probable reserves and other relevant information received from the operators . we evaluate the recoverability of the carrying value of royalty interests in exploration stage mineral properties in the event of significant decreases in the price of gold , silver , copper , nickel and other metals , and whenever new information regarding the mineral properties is obtained from the operator indicating that production will not likely occur or may be reduced in the future , thus affecting the future recoverability of our royalty interests . impairments in the carrying value of each property are measured and recorded to the extent that the carrying value in each property exceeds its estimated fair value , which is generally calculated using estimated future discounted cash flows . story_separator_special_tag fiscal year ended june 30 , 2012 , compared with fiscal year ended june 30 , 2011 for the fiscal year ended june 30 , 2012 , we recorded net income available to royal gold common stockholders of $ 92.5 million , or $ 1.61 per basic share and diluted share , compared to net income available to royal gold common stockholders of $ 71.4 million , or $ 1.29 per basic and diluted share , for the fiscal year ended june 30 , 2011. the increase in our earnings per share was primarily attributable to an increase in royalty revenue , as discussed further below . this increase was partially offset by an increase in production taxes , depletion expense , income tax expense and the royalty restructuring charge during the period , each of which are discussed further below . for fiscal year ended june 30 , 2012 , we recognized total royalty revenue of $ 263.1 million , at an average gold price of $ 1,673 per ounce , an average silver price of $ 33.26 per ounce , an average nickel 46 price of $ 8.77 per pound and an average copper price of $ 3.71 per pound , compared to total royalty revenue of $ 216.5 million , at an average gold price of $ 1,369 per ounce , an average silver price of $ 28.61 per ounce , an average nickel price of $ 10.86 per pound and an average copper price of $ 3.92 per pound , for fiscal year ended june 30 , 2011. royalty revenue and the corresponding production , attributable to our royalty interests , for the fiscal year ended june 30 , 2012 compared to the fiscal year ended june 30 , 2011 is as follows : royalty revenue and production subject to our royalty interests fiscal years ended june 30 , 2012 and 2011 ( in thousands , except reported production in ozs . and lbs . ) replace_table_token_19_th ( 1 ) reported production relates to the amount of metal sales , subject to our royalty interests , for the twelve months ended june 30 , 2012 and june 30 , 2011 , as reported to us by the operators of the mines . ( 2 ) individually , no royalty included within the `` other `` category contributed greater than 5 % of our total royalty revenue for either period . the increase in royalty revenue for the fiscal year ended june 30 , 2012 , compared with the fiscal year ended june 30 , 2011 , resulted primarily from an increase in the average gold and silver prices , increased reported production at andacollo , voisey 's bay , mulatos and dolores , the continued ramp-up 47 at peñasquito , holt , las cruces , canadian malartic and wolverine . these increases were partially offset during the period due to decreases in reported production at cortez , leeville and robinson . refer to part i , item 2 , properties , for discussion and any updates on our principal producing properties . depreciation , depletion and amortization expense increased to $ 75.0 million for the fiscal year ended june 30 , 2012 , from $ 67.4 million for the fiscal year ended june 30 , 2011. the increase was primarily attributable to an increase in production at andacollo , voisey 's bay and las cruces , which resulted in additional depletion expense of approximately $ 8.3 million during the period . the increase was also attributable to the continued ramp-up at holt and canadian malartic , which resulted in additional depletion expense of approximately $ 4.3 million during the period . these increases were partially offset by a decrease in depletion at taparko of approximately $ 4.3 million , which was due to the dollar cap being met during fiscal year 2011. during the fiscal year ended june 30 , 2012 , we recognized income tax expense totaling $ 54.7 million compared with $ 39.0 million during the fiscal year ended june 30 , 2011. this resulted in an effective tax rate of 35.8 % during the current period , compared with 33.5 % in the prior period . the increase in the effective tax rate for the twelve months ended june 30 , 2012 is primarily related to an increase in tax expense and valuation allowances related to earnings from non-u.s. subsidiaries offset by a decrease in tax expense associated with the decrease in foreign currency exchange gains and the effect of excess depletion . forward-looking statements cautionary `` safe harbor `` statement under the private securities litigation reform act of 1995 : with the exception of historical matters , the matters discussed in this annual report on form 10-k are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from projections or estimates contained herein . such forward-looking statements include , without limitation , statements regarding projected production estimates and estimates pertaining to timing and commencement of production from the operators of properties where we hold royalty interests ; the adequacy of financial resources and funds to cover anticipated expenditures for general and administrative expenses as well as costs associated with exploration and business development and capital expenditures , and our expectation that substantially all our revenues will be derived from royalty interests . words such as `` may , `` `` could , `` `` should , `` `` would , `` `` believe , `` `` estimate , `` `` expect , `` `` anticipate , `` `` plan , `` `` forecast , `` `` potential , `` `` intend , `` `` continue , `` `` project `` and variations of these words , comparable words and similar expressions generally indicate forward-looking statements , which speak only as of the date the statement is made . do not unduly rely on forward-looking statements . actual results may differ materially from those expressed or implied

stockholders of newell rubbermaid and former jarden stockholders ( including holders of jarden convertible notes ) owned 55 % and 45 % , respectively , of newell brands upon completion of the merger . the company paid $ 5.2 billion in addition to $ 4.1 billion for the repayment of certain jarden debt , net of $ 661.9 million of cash acquired . a total of $ 222.2 million in cash otherwise payable in connection with the acquisition has not been paid as of december 31 , 2016 , as this amount was payable in respect of shareholders who have exercised their judicial rights of appraisal under delaware law . the total merger consideration otherwise payable to the dissenting stockholders was approximately $ 626.5 million based on the company 's stock price as of the closing date . the company financed the $ 5.4 billion cash portion of the merger consideration and the repayment of $ 4.1 billion of outstanding jarden debt with proceeds from the issuance of $ 8.0 billion of medium-term and long-term notes in march 2016 and $ 1.5 billion of borrowings under a term loan facility . see footnote 10 of the notes to consolidated financial statements for further information . the company is committed to maintaining its investment grade credit rating by using strong cash flow from the combined enterprise to prioritize debt reduction in the short term , while simultaneously investing in the company 's growth platforms and maintaining its dividend per share . 27 the jarden acquisition was accounted for using the purchase method of accounting , and jarden 's assets , liabilities and results of operations are included in the company 's financial statements from the acquisition date of april 15 , 2016. business strategy during 2016 , the company launched the new growth game plan , which is its strategy to simplify the organization and free up resources to invest in growth initiatives and strengthened capabilities in support of the company 's brands . the changes being implemented in the execution of the new growth game plan are considered key enablers to building a bigger , faster-growing , more global and more profitable company . as part of the new growth game plan , in late 2016 the company began to transform from a holding company to an operating company , consolidating its business units into global divisions while investing to extend its design , innovation and brand development capabilities across a broader set of categories . these organization changes were initiated in the third quarter and this major phase of the transformation was completed by year end . these new global divisions will become the key commercial nodes in the company , including a new global ecommerce division , which will have responsibility for all ecommerce activity across the enterprise.the divisions will generally align to the four areas of strategic focus for the company of live , learn , work , and play . the new structure will be effective january 1 , 2017. organizational structure the company 's nine business segments and the key brands included in each segment during 2016 are as follows : segment key brands description of primary products writing sharpie ® , paper mate ® , expo ® , prismacolor ® , mr. sketch ® , elmer 's ® , x-acto ® , parker ® , waterman ® , dymo ® office writing instruments , including markers and highlighters , pens and pencils ; art products ; activity-based adhesive and cutting products ; fine writing instruments ; labeling solutions home solutions rubbermaid ® , contigo ® , bubba ® , calphalon ® , goody ® indoor/outdoor organization , food storage and home storage products ; durable beverage containers ; gourmet cookware , bakeware and cutlery ; hair care accessories tools irwin ® , lenox ® , hilmor , dymo ® industrial hand tools and power tool accessories ; industrial bandsaw blades ; tools for hvac systems ; label makers and printers for industrial use commercial products rubbermaid commercial products ® cleaning and refuse products ; hygiene systems ; material handling solutions baby & parenting graco ® , baby jogger ® , aprica ® , teutonia ® infant and juvenile products such as car seats , strollers , highchairs and playards branded consumables yankee candle ® , waddington , ball ® , diamond ® , first alert ® , nuk ® , quickie ® , pine mountain ® branded consumer products ; consumable and fundamental household staples consumer solutions crock-pot ® , foodsaver ® , holmes ® , mr. coffee ® , oster ® , rainbow ® , sunbeam ® household products , including kitchen appliances and home environment products outdoor solutions coleman ® , jostens ® , berkley ® , shakespeare ® , rawlings ® , völkl ® , k2 ® , marmot ® products for outdoor and outdoor-related activities process solutions jarden plastic solutions , jarden applied materials , jarden zinc products plastic products including container closures , contact lens packaging , medical disposables , plastic cutlery and rigid packaging on april 15 , 2016 , the company acquired jarden for total consideration of $ 18.7 billion including cash paid , shares issued and debt assumed , net of cash acquired . the acquisition was accounted for using the purchase method of accounting , and accordingly , jarden 's results of operations are included in the company 's results of operations since the acquisition date , including net sales of $ 7.3 billion for the year ended december 31 , 2016 . jarden is included in its legacy segments : branded consumables , consumer solutions , outdoor solutions and process solutions . 28 in october 2015 , the company acquired elmer 's products , inc. ( “ elmer 's ” ) for a purchase price of $ 571.4 million . story_separator_special_tag the april 2015 expansion is expected to generate annualized incremental overhead cost savings of approximately $ 150 million when fully implemented by the end of 2017 , which includes savings expected to be realized during 2018 from projects completed in 2017. in connection with the april 2015 expansion , the company expects to incur approximately $ 150 million of additional costs , including cash costs of approximately $ 135 million . the additional costs include pretax restructuring charges in the range of $ 125 to $ 135 million , a majority of which are expected to be facility exit costs and employee-related cash costs , including severance , retirement and other termination benefits . cumulative costs of the expanded project renewal are now expected to be approximately $ 690 to $ 725 million pretax , with cash costs of approximately $ 645 to $ 675 million . project renewal in total is expected to generate annualized cost savings of approximately $ 620 to $ 675 million by the end of 2017 , which includes savings expected to be realized during 2018 from projects completed in 2017. through december 31 , 2016 , the company has realized annualized savings of approximately $ 510 million . the majority of these savings have been , and the majority of future savings from project renewal initiatives are expected to be , reinvested in the business to strengthen brand building and selling capabilities in priority markets around the world . since inception of project renewal through december 31 , 2016 , the company had incurred $ 319.7 million and $ 208.8 million of restructuring and other project-related costs , respectively . the majority of the restructuring costs represent employee-related cash costs , including severance , retirement and other termination benefits and costs . other project-related costs represent organizational change implementation costs , including advisory and consultancy costs , compensation and related costs of personnel dedicated to transformation projects , and other costs associated with the implementation of project renewal . through december 31 , 2016 , the company estimates it has reduced its headcount by approximately 2,900 employees as a result of project renewal initiatives . the following table summarizes the estimated costs and savings relating to project renewal , as well as the actual results through december 31 , 2016 ( amounts in millions ) : replace_table_token_4_th * includes savings expected to be realized during 2018 from projects completed in 2017. in 2016 , the company has continued to execute existing projects as well as initiate new activities relating to project renewal as follows : ongoing reconfiguration and consolidation of the company 's manufacturing footprint and distribution centers to reduce overhead , improve operational efficiencies and better utilize existing assets , including the ongoing implementation of projects to better align the writing segment 's worldwide supply chain footprint . 32 ongoing evaluations of the company 's overhead structure , supply chain organization and processes , customer development organization alignment , and pricing structure to optimize and transform processes , simplify the organization and reduce costs , including the implementation of technology-based solutions to better manage pricing initiatives and merchandising support . initiated a project to enhance the baby & parenting segment 's route-to-market in certain parts of north america . continued implementation of plans to relocate the company 's atlanta business hub within atlanta , georgia in early 2016. the company moved into the new building in april 2016. foreign currency - venezuela until december 31 , 2015 , the company accounted for its venezuelan operations using highly inflationary accounting , and therefore , the company remeasured assets , liabilities , sales and expenses denominated in bolivar fuertes ( “ bolivars ” ) into u.s. dollars using the applicable exchange rate , and the resulting translation adjustments were included in earnings . as of december 31 , 2015 , the company determined it could no longer exercise control over its venezuela operations because the availability of u.s. dollars had declined significantly over the past several years in each of venezuela 's three exchange mechanisms . as a result , the company deconsolidated its venezuelan operations . prior to the deconsolidation of the venezuela operations on december 31 , 2015 , the results of the company 's venezuelan operations have been included in the company 's consolidated statements of operations for 2015 and all prior periods . as of december 31 , 2015 , the company began accounting for its investment in its venezuelan operations using the cost method of accounting , and the cost basis was adjusted to nil as of december 31 , 2015. during the years ended december 31 , 2015 and 2014 , the venezuelan operations generated 2.2 % and 1.4 % of consolidated net sales , respectively and $ 51.1 million and $ 30.0 million of the company 's reported annual operating income , respectively . as a result of deconsolidating its venezuelan operations , the company recorded a charge of $ 172.7 million in 2015. the charge consisted of the write-off of the company 's venezuelan operations ' net assets of $ 74.7 million , as well as $ 58.3 million of venezuela receivable-related assets held by other subsidiaries , resulting in $ 133.0 million of total charges associated with the deconsolidation of venezuela 's net assets . in addition , in accordance with applicable accounting standards for foreign currency and the transition to the cost method for venezuela 's operations , the company was required to write-off the currency translation adjustment that arose prior to the application of hyperinflationary accounting in 2010 that was included in other comprehensive loss in equity . the write-off of the currency translation adjustment resulted in a pre-tax charge of $ 39.7 million . the company plans to continue operating its business in venezuela . since the company holds all of the equity interests but does not have the power to direct the activities that most significantly affect the venezuela entity 's economic

cash provided by operating activities for 2015 was $ 565.8 million compared to $ 634.1 million for 2014 . the decrease in operating cash flow was primarily due to the impact of the following items : a $ 70.0 million voluntary contribution to the company 's primary u.s. pension plan during 2015 , which is included in accrued liabilities and other in the consolidated statements of cash flows ; a $ 69.6 million year-over-year increase in cash used to build inventories in 2015 compared to 2014 , partially attributable to inventory builds in 2015 to support new product launches ; a $ 45.9 million year-over-year increase in project-related costs associated with project renewal and advisory costs for process transformation and optimization , including advisory and consulting costs and personnel costs associated with employees dedicated to project renewal initiatives ; and a $ 67.0 million year-over-year decrease in cash provided by accounts payable , primarily attributable to the timing and management of purchases and payments . partially offset by : a $ 107.1 million year-over-year decrease in cash used for increases in accounts receivable due to the timing of sales in the fourth quarter of 2015 compared to the fourth quarter of 2014 ; and a $ 60.6 million increase in the company 's income tax liability during 2015 , which is included in accrued liabilities and other in the consolidated statements of cash flows , primarily associated with an estimated $ 60.0 million income tax payment due in the first quarter of 2016 associated with the gain realized on the sale of the endicia business . during 2016 , the company had net payments of $ 641.4 million related to its short-term borrowing arrangements compared to net payments of $ 57.0 million related to short-term borrowing arrangements 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 provided by operating activities for 2015 was $ 565.8 million compared to $ 634.1 million for 2014 . the decrease in operating cash flow was primarily due to the impact of the following items : a $ 70.0 million voluntary contribution to the company 's primary u.s. pension plan during 2015 , which is included in accrued liabilities and other in the consolidated statements of cash flows ; a $ 69.6 million year-over-year increase in cash used to build inventories in 2015 compared to 2014 , partially attributable to inventory builds in 2015 to support new product launches ; a $ 45.9 million year-over-year increase in project-related costs associated with project renewal and advisory costs for process transformation and optimization , including advisory and consulting costs and personnel costs associated with employees dedicated to project renewal initiatives ; and a $ 67.0 million year-over-year decrease in cash provided by accounts payable , primarily attributable to the timing and management of purchases and payments . partially offset by : a $ 107.1 million year-over-year decrease in cash used for increases in accounts receivable due to the timing of sales in the fourth quarter of 2015 compared to the fourth quarter of 2014 ; and a $ 60.6 million increase in the company 's income tax liability during 2015 , which is included in accrued liabilities and other in the consolidated statements of cash flows , primarily associated with an estimated $ 60.0 million income tax payment due in the first quarter of 2016 associated with the gain realized on the sale of the endicia business . during 2016 , the company had net payments of $ 641.4 million related to its short-term borrowing arrangements compared to net payments of $ 57.0 million related to short-term borrowing arrangements in 2015 . ``` Suspicious Activity Report : stockholders of newell rubbermaid and former jarden stockholders ( including holders of jarden convertible notes ) owned 55 % and 45 % , respectively , of newell brands upon completion of the merger . the company paid $ 5.2 billion in addition to $ 4.1 billion for the repayment of certain jarden debt , net of $ 661.9 million of cash acquired . a total of $ 222.2 million in cash otherwise payable in connection with the acquisition has not been paid as of december 31 , 2016 , as this amount was payable in respect of shareholders who have exercised their judicial rights of appraisal under delaware law . the total merger consideration otherwise payable to the dissenting stockholders was approximately $ 626.5 million based on the company 's stock price as of the closing date . the company financed the $ 5.4 billion cash portion of the merger consideration and the repayment of $ 4.1 billion of outstanding jarden debt with proceeds from the issuance of $ 8.0 billion of medium-term and long-term notes in march 2016 and $ 1.5 billion of borrowings under a term loan facility . see footnote 10 of the notes to consolidated financial statements for further information . the company is committed to maintaining its investment grade credit rating by using strong cash flow from the combined enterprise to prioritize debt reduction in the short term , while simultaneously investing in the company 's growth platforms and maintaining its dividend per share . 27 the jarden acquisition was accounted for using the purchase method of accounting , and jarden 's assets , liabilities and results of operations are included in the company 's financial statements from the acquisition date of april 15 , 2016. business strategy during 2016 , the company launched the new growth game plan , which is its strategy to simplify the organization and free up resources to invest in growth initiatives and strengthened capabilities in support of the company 's brands . the changes being implemented in the execution of the new growth game plan are considered key enablers to building a bigger , faster-growing , more global and more profitable company . as part of the new growth game plan , in late 2016 the company began to transform from a holding company to an operating company , consolidating its business units into global divisions while investing to extend its design , innovation and brand development capabilities across a broader set of categories . these organization changes were initiated in the third quarter and this major phase of the transformation was completed by year end . these new global divisions will become the key commercial nodes in the company , including a new global ecommerce division , which will have responsibility for all ecommerce activity across the enterprise.the divisions will generally align to the four areas of strategic focus for the company of live , learn , work , and play . the new structure will be effective january 1 , 2017. organizational structure the company 's nine business segments and the key brands included in each segment during 2016 are as follows : segment key brands description of primary products writing sharpie ® , paper mate ® , expo ® , prismacolor ® , mr. sketch ® , elmer 's ® , x-acto ® , parker ® , waterman ® , dymo ® office writing instruments , including markers and highlighters , pens and pencils ; art products ; activity-based adhesive and cutting products ; fine writing instruments ; labeling solutions home solutions rubbermaid ® , contigo ® , bubba ® , calphalon ® , goody ® indoor/outdoor organization , food storage and home storage products ; durable beverage containers ; gourmet cookware , bakeware and cutlery ; hair care accessories tools irwin ® , lenox ® , hilmor , dymo ® industrial hand tools and power tool accessories ; industrial bandsaw blades ; tools for hvac systems ; label makers and printers for industrial use commercial products rubbermaid commercial products ® cleaning and refuse products ; hygiene systems ; material handling solutions baby & parenting graco ® , baby jogger ® , aprica ® , teutonia ® infant and juvenile products such as car seats , strollers , highchairs and playards branded consumables yankee candle ® , waddington , ball ® , diamond ® , first alert ® , nuk ® , quickie ® , pine mountain ® branded consumer products ; consumable and fundamental household staples consumer solutions crock-pot ® , foodsaver ® , holmes ® , mr. coffee ® , oster ® , rainbow ® , sunbeam ® household products , including kitchen appliances and home environment products outdoor solutions coleman ® , jostens ® , berkley ® , shakespeare ® , rawlings ® , völkl ® , k2 ® , marmot ® products for outdoor and outdoor-related activities process solutions jarden plastic solutions , jarden applied materials , jarden zinc products plastic products including container closures , contact lens packaging , medical disposables , plastic cutlery and rigid packaging on april 15 , 2016 , the company acquired jarden for total consideration of $ 18.7 billion including cash paid , shares issued and debt assumed , net of cash acquired . the acquisition was accounted for using the purchase method of accounting , and accordingly , jarden 's results of operations are included in the company 's results of operations since the acquisition date , including net sales of $ 7.3 billion for the year ended december 31 , 2016 . jarden is included in its legacy segments : branded consumables , consumer solutions , outdoor solutions and process solutions . 28 in october 2015 , the company acquired elmer 's products , inc. ( “ elmer 's ” ) for a purchase price of $ 571.4 million . story_separator_special_tag the april 2015 expansion is expected to generate annualized incremental overhead cost savings of approximately $ 150 million when fully implemented by the end of 2017 , which includes savings expected to be realized during 2018 from projects completed in 2017. in connection with the april 2015 expansion , the company expects to incur approximately $ 150 million of additional costs , including cash costs of approximately $ 135 million . the additional costs include pretax restructuring charges in the range of $ 125 to $ 135 million , a majority of which are expected to be facility exit costs and employee-related cash costs , including severance , retirement and other termination benefits . cumulative costs of the expanded project renewal are now expected to be approximately $ 690 to $ 725 million pretax , with cash costs of approximately $ 645 to $ 675 million . project renewal in total is expected to generate annualized cost savings of approximately $ 620 to $ 675 million by the end of 2017 , which includes savings expected to be realized during 2018 from projects completed in 2017. through december 31 , 2016 , the company has realized annualized savings of approximately $ 510 million . the majority of these savings have been , and the majority of future savings from project renewal initiatives are expected to be , reinvested in the business to strengthen brand building and selling capabilities in priority markets around the world . since inception of project renewal through december 31 , 2016 , the company had incurred $ 319.7 million and $ 208.8 million of restructuring and other project-related costs , respectively . the majority of the restructuring costs represent employee-related cash costs , including severance , retirement and other termination benefits and costs . other project-related costs represent organizational change implementation costs , including advisory and consultancy costs , compensation and related costs of personnel dedicated to transformation projects , and other costs associated with the implementation of project renewal . through december 31 , 2016 , the company estimates it has reduced its headcount by approximately 2,900 employees as a result of project renewal initiatives . the following table summarizes the estimated costs and savings relating to project renewal , as well as the actual results through december 31 , 2016 ( amounts in millions ) : replace_table_token_4_th * includes savings expected to be realized during 2018 from projects completed in 2017. in 2016 , the company has continued to execute existing projects as well as initiate new activities relating to project renewal as follows : ongoing reconfiguration and consolidation of the company 's manufacturing footprint and distribution centers to reduce overhead , improve operational efficiencies and better utilize existing assets , including the ongoing implementation of projects to better align the writing segment 's worldwide supply chain footprint . 32 ongoing evaluations of the company 's overhead structure , supply chain organization and processes , customer development organization alignment , and pricing structure to optimize and transform processes , simplify the organization and reduce costs , including the implementation of technology-based solutions to better manage pricing initiatives and merchandising support . initiated a project to enhance the baby & parenting segment 's route-to-market in certain parts of north america . continued implementation of plans to relocate the company 's atlanta business hub within atlanta , georgia in early 2016. the company moved into the new building in april 2016. foreign currency - venezuela until december 31 , 2015 , the company accounted for its venezuelan operations using highly inflationary accounting , and therefore , the company remeasured assets , liabilities , sales and expenses denominated in bolivar fuertes ( “ bolivars ” ) into u.s. dollars using the applicable exchange rate , and the resulting translation adjustments were included in earnings . as of december 31 , 2015 , the company determined it could no longer exercise control over its venezuela operations because the availability of u.s. dollars had declined significantly over the past several years in each of venezuela 's three exchange mechanisms . as a result , the company deconsolidated its venezuelan operations . prior to the deconsolidation of the venezuela operations on december 31 , 2015 , the results of the company 's venezuelan operations have been included in the company 's consolidated statements of operations for 2015 and all prior periods . as of december 31 , 2015 , the company began accounting for its investment in its venezuelan operations using the cost method of accounting , and the cost basis was adjusted to nil as of december 31 , 2015. during the years ended december 31 , 2015 and 2014 , the venezuelan operations generated 2.2 % and 1.4 % of consolidated net sales , respectively and $ 51.1 million and $ 30.0 million of the company 's reported annual operating income , respectively . as a result of deconsolidating its venezuelan operations , the company recorded a charge of $ 172.7 million in 2015. the charge consisted of the write-off of the company 's venezuelan operations ' net assets of $ 74.7 million , as well as $ 58.3 million of venezuela receivable-related assets held by other subsidiaries , resulting in $ 133.0 million of total charges associated with the deconsolidation of venezuela 's net assets . in addition , in accordance with applicable accounting standards for foreign currency and the transition to the cost method for venezuela 's operations , the company was required to write-off the currency translation adjustment that arose prior to the application of hyperinflationary accounting in 2010 that was included in other comprehensive loss in equity . the write-off of the currency translation adjustment resulted in a pre-tax charge of $ 39.7 million . the company plans to continue operating its business in venezuela . since the company holds all of the equity interests but does not have the power to direct the activities that most significantly affect the venezuela entity 's economic

deposits grew $ 167.8 million , or 7 % , to $ 2.504 billion at december 31 , 2020 , compared to $ 2.336 billion at december 31 , 2019. non-interest bearing deposits grew by $ 225.8 million in 2020 , or 20 % , and made up 54 % of total deposits at year-end . cost of deposits remained low at 0.11 % in 2020 , compared to 0.20 % in 2019. net interest income totaled $ 96.7 million and $ 95.7 million in 2020 and 2019 , respectively . the $ 1.0 million increase in 2020 was primarily due to sba ppp loans and lower rates on interest-bearing deposits , largely offset by lower yields on earning-assets . the tax-equivalent net interest margin decreased to 3.55 % in 2020 , compared to 3.98 % in 2019. the 43 basis point decrease was primarily due to lower yields across interest-earning asset categories , partially offset by lower rates on interest-bearing deposits . the efficiency ratio was 57.06 % in 2020 , up from 55.33 % in 2019. contributing to this increase was the decrease in net interest margin , higher provision for credit losses on unfunded loan commitments , and lower income from s ervice charges on deposit accounts and atm fees in 2020. for the year ended december 31 , 2020 , return on assets and return on equity were 1.04 % and 8.60 % , respectively , compared to 1.34 % and 10.49 % in the prior year . all capital ratios exceeded regulatory requirements . the total risk-based capital ratio for bancorp was 16.0 % at december 31 , 2020 up from 15.1 % at december 31 , 2019. tangible common equity to tangible assets was 11.3 % at both december 31 , 2020 and december 31 , 2019 ( see footnote 8 , item 6 , selected financial data , for the definition of this non-gaap financial measure ) . the total risk-based capital ratio for the bank was 15.8 % at december 31 , 2020 and 14.6 % at december 31 , 2019. the board of directors declared a cash dividend of $ 0.23 per share on january 22 , 2021. this was the 63 rd consecutive quarterly dividend paid by bank of marin bancorp . the cash dividend was paid on february 12 , 2021 to shareholders of record at the close of business on february 5 , 2021. our strong capital and liquidity position afforded us the opportunity to eliminate a high cost funding source . on march 15 , 2021 we redeemed the $ 2.8 million subordinated debenture , which carried a rate of 5.68 % in 2020. the redemption consisted of $ 4.1 million principal balance , quarterly interest due , and $ 1.3 million in accelerated accretion of purchase discount . the contractual interest rate on the subordinated debenture was 3-month libor plus 1.40 % , or 1.62 % as of december 31 , 2020. covid-19 pandemic-related response update - we have remained open and responded to customer needs throughout 2020. we more than doubled our charitable contributions to non-profit organizations in our community to over $ 1.0 million in 2020. in march 2020 , we began waiving all atm and overdraft fees and cancelling early withdrawal penalties for time certificate of deposits when allowed by law . we accommodated loan payment relief requests for borrowers with financial hardships and lowered interest rate floors on commercial prime rate loans . under the provisions of the coronavirus aid , relief and economic security act ( `` cares act `` ) of 2020 , bank of marin originated over 1,800 ppp loans to small businesses , reaching nearly 28,000 employees in our markets . in 2021 , we are once again diligently working with our customers to accommodate requests for round two of ppp 26 loans under the economic aid to hard-hit small businesses , nonprofits , and venues act ( `` economic aid act `` ) , which became law in december of 2020. paycheck protection program - while the ppp affords us an opportunity to assist our customers and community and requires a large of amount of human resources , the ppp loans do not pose a significant amount of risk of loss to the bank as they are 100 % guaranteed by the sba . as of december 31 , 2020 , there were 1,777 ppp loans outstanding totaling $ 291.6 million , net of $ 5.4 million in unearned fees . during the fourth quarter bank of marin opened a secure ppp loan forgiveness application portal and gave all ppp borrowers access to apply . as of december 31 , 2020 we received sba loan forgiveness payments totaling $ 10.9 million for 35 loans that were forgiven . of the total ppp loans rem aining , 74 % ( 1,309 loans ) totaling $ 58.7 million are less than or equal to $ 150 thousand and have access to streamlined forgiveness processing . on january 19 , 2021 , the bank launched the application process and began accepting loan requests for the second round of ppp , as revised by the economic aid act . as of march 11 , 2021 , we have received 974 loan applications totaling $ 131.6 million . payment relief - during 2020 , in accordance with section 4013 of the cares act , subsequently amended by the economic aid act , we elected to apply the temporary accounting relief provisions for loan modifications that met certain criteria , which would otherwise be designated as tdrs under existing gaap . of the 269 loans totaling $ 402.9 million granted payment relief since the onset of the pandemic , 222 loans or $ 324.2 million have resumed normal payments and 18 loans or $ 7.7 million paid off . as of december 31 , 2020 , 21 borrowing relationships with 29 loans totaling $ 71.0 million had requested additional payment relief . story_separator_special_tag the decrease was primarily due to $ 1.0 million in consulting expenses related to core processing contract negotiations in 2018 , lower data processing expenses in 2019 as a result of the renegotiation of the bank 's core systems contract , and lower federal deposit insurance corporation ( `` fdic `` ) deposit insurance expenses due to the fdic deposit insurance fund reserve exceeding its billing threshold in 2019. the decreases in non-interest expense were partially offset by $ 918 thousand higher salaries and related benefits as a result of annual merit increases , three additional full-time equivalent employees ( on average ) , and personnel severance , as well as higher recruiting fees recorded in other expenses . provision for income taxes income tax provisions reflect accruals for taxes at the applicable rates for federal income tax and california franchise tax based upon reported pre-tax income . provisions also reflect permanent differences between income for tax and financial reporting purposes ( such as earnings on tax exempt loans and municipal securities , boli , low-income housing tax credits , and stock-based compensation from the exercise of stock options , disqualifying dispositions of incentive stock options and vesting of restricted stock awards ) . the provision for income taxes totaled $ 10.3 million at an effective tax rate of 25.5 % in 2020 , compared to $ 11.7 million at an effective tax rate of 25.4 % in 2019 and $ 10.8 million at an effective tax rate of 24.9 % in 2018. the decrease in the provision in 2020 compared to 2019 reflected lower pre-tax income and higher tax-exempt interest income on municipal securities . the slight increase in the effective tax rate in 2020 as compared to 2019 was due to a favorable deferred tax liability true-up recognized in 2019 and a lower tax benefit from boli income in 2020. the increase in the effective tax rate in 2019 compared to 2018 was due to a higher level of tax benefits in 2018 from the exercise of non-qualified stock options and disqualifying dispositions of incentive stock options by former employees of bank of napa post-acquisition . we file a consolidated return in the u.s. federal tax jurisdiction and a combined return in the state of california tax jurisdiction . there were no ongoing federal or state income tax examinations at the issuance of this report . at december 31 , 2020 and 2019 , neither the bank nor bancorp had accruals for interest or penalties related to unrecognized tax benefits . financial condition our assets increased $ 204.6 million from december 31 , 2019 to december 31 , 2020 , mainly due to loan growth of $ 245.3 million , primarily driven by ppp loan originations , which were offset by a $ 68.3 million decrease in investment security balances . investment securities we maintain an investment securities portfolio to provide liquidity and to generate earnings on funds that have not been loaned to customers . management determines the maturities and types of securities to be purchased based on liquidity and interest rate risk position , and the desire to attain a reasonable investment yield balanced with risk exposure . table 5 shows the composition of the debt securities portfolio by expected maturity at december 31 , 2020 and 2019. expected maturities differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties . we estimate and update expected maturity dates regularly based on current and historical prepayment speeds . the weighted average life of the investment portfolio at december 31 , 2020 and 2019 was approximately five and six years , respectively . 32 table 5 investment securities replace_table_token_5_th 1 book value reflects cost , adjusted for accumulated amortization and accretion . 2 weighted average calculation is based on amortized cost of securities . 3 yields on tax-exempt municipal bonds are presented on a taxable equivalent basis , using federal tax rate of 21 % . the amortized cost of our investment securities portfolio decreased $ 79.3 million or 14 % during 2020. we purchased $ 97.5 million in securities in 2020 designated as available-for-sale to provide flexibility for liquidity and interest rate risk management . these purchases were offset by $ 143.1 million of paydowns , calls and maturities , and $ 32.8 million of sales during 2020. during 2020 , we purchased $ 57.6 million in obligations of state and political subdivisions , $ 31.0 million in collateralized mortgage obligations ( `` cmos `` ) and $ 9.0 million in debentures of government sponsored agencies . we consider agency debentures and cmos issued by u.s. government sponsored entities to have low credit risk as they carry the credit support of the u.s. federal government . the debentures , cmos and mbs issued by u.s. government sponsored agencies , state and municipal securities , and sba-backed securities made up 70.1 % , 22.1 % and 7.8 % of the portfolio at december 31 , 2020 , compared to 79.6 % , 12.4 % and 7.8 % , respectively at december 31 , 2019. see the discussion in the section captioned “ securities may lose value due to credit quality of the issuers ” in item 1a risk factors above . 33 at december 31 , 2020 , distribution of our investment in obligations of state and political subdivisions was as follows : replace_table_token_6_th the portion of the portfolio outside the state of california is distributed among 10 states . the largest concentrations outside california are in texas ( 55.3 % ) , washington ( 9.3 % ) , and maryland ( 6.4 % ) . during march 2020 , we strategically increased our credit exposure to obligations issued by high credit quality issuers in texas that are either guaranteed by the aaa-rated texas permanent school fund ( `` psf `` ) or backed by revenue sources from essential services such as

liquidity the goal of liquidity management is to provide adequate funds to meet loan demand and to fund operating activities and deposit withdrawals . we accomplish this goal by maintaining an appropriate level of liquid assets and formal lines of credit with the fhlb , frbsf and correspondent banks that enable us to borrow funds as discussed in note 7 to the consolidated financial statement in item 8 of this report . our asset liability management committee ( `` alco '' ) , which is comprised of independent bank directors and the bank 's chief executive officer , is responsible for approving and monitoring our liquidity targets and strategies . alco has adopted a contingency funding plan that provides early detection of potential liquidity issues in the market or the bank and institutes prompt responses that may prevent or alleviate a potential liquidity crisis . management monitors liquidity daily and regularly adjusts our position based on current and future liquidity needs . we also have relationships with third-party deposit networks and can adjust the placement of our deposits via reciprocal or one-way sales as part of our cash management strategy , as discussed in note 6 to the consolidated financial statements in item 8 of this report . we obtain funds from the repayment and maturity of loans , deposit inflows , investment security maturities and paydowns , federal funds purchases , fhlb advances , other borrowings , and cash flow from operations . our primary uses of funds are the origination of loans , the purchase of investment securities , withdrawals of deposits , maturity of certificates of deposit , repayment of borrowings , and dividends to common 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 the goal of liquidity management is to provide adequate funds to meet loan demand and to fund operating activities and deposit withdrawals . we accomplish this goal by maintaining an appropriate level of liquid assets and formal lines of credit with the fhlb , frbsf and correspondent banks that enable us to borrow funds as discussed in note 7 to the consolidated financial statement in item 8 of this report . our asset liability management committee ( `` alco '' ) , which is comprised of independent bank directors and the bank 's chief executive officer , is responsible for approving and monitoring our liquidity targets and strategies . alco has adopted a contingency funding plan that provides early detection of potential liquidity issues in the market or the bank and institutes prompt responses that may prevent or alleviate a potential liquidity crisis . management monitors liquidity daily and regularly adjusts our position based on current and future liquidity needs . we also have relationships with third-party deposit networks and can adjust the placement of our deposits via reciprocal or one-way sales as part of our cash management strategy , as discussed in note 6 to the consolidated financial statements in item 8 of this report . we obtain funds from the repayment and maturity of loans , deposit inflows , investment security maturities and paydowns , federal funds purchases , fhlb advances , other borrowings , and cash flow from operations . our primary uses of funds are the origination of loans , the purchase of investment securities , withdrawals of deposits , maturity of certificates of deposit , repayment of borrowings , and dividends to common stockholders . ``` Suspicious Activity Report : deposits grew $ 167.8 million , or 7 % , to $ 2.504 billion at december 31 , 2020 , compared to $ 2.336 billion at december 31 , 2019. non-interest bearing deposits grew by $ 225.8 million in 2020 , or 20 % , and made up 54 % of total deposits at year-end . cost of deposits remained low at 0.11 % in 2020 , compared to 0.20 % in 2019. net interest income totaled $ 96.7 million and $ 95.7 million in 2020 and 2019 , respectively . the $ 1.0 million increase in 2020 was primarily due to sba ppp loans and lower rates on interest-bearing deposits , largely offset by lower yields on earning-assets . the tax-equivalent net interest margin decreased to 3.55 % in 2020 , compared to 3.98 % in 2019. the 43 basis point decrease was primarily due to lower yields across interest-earning asset categories , partially offset by lower rates on interest-bearing deposits . the efficiency ratio was 57.06 % in 2020 , up from 55.33 % in 2019. contributing to this increase was the decrease in net interest margin , higher provision for credit losses on unfunded loan commitments , and lower income from s ervice charges on deposit accounts and atm fees in 2020. for the year ended december 31 , 2020 , return on assets and return on equity were 1.04 % and 8.60 % , respectively , compared to 1.34 % and 10.49 % in the prior year . all capital ratios exceeded regulatory requirements . the total risk-based capital ratio for bancorp was 16.0 % at december 31 , 2020 up from 15.1 % at december 31 , 2019. tangible common equity to tangible assets was 11.3 % at both december 31 , 2020 and december 31 , 2019 ( see footnote 8 , item 6 , selected financial data , for the definition of this non-gaap financial measure ) . the total risk-based capital ratio for the bank was 15.8 % at december 31 , 2020 and 14.6 % at december 31 , 2019. the board of directors declared a cash dividend of $ 0.23 per share on january 22 , 2021. this was the 63 rd consecutive quarterly dividend paid by bank of marin bancorp . the cash dividend was paid on february 12 , 2021 to shareholders of record at the close of business on february 5 , 2021. our strong capital and liquidity position afforded us the opportunity to eliminate a high cost funding source . on march 15 , 2021 we redeemed the $ 2.8 million subordinated debenture , which carried a rate of 5.68 % in 2020. the redemption consisted of $ 4.1 million principal balance , quarterly interest due , and $ 1.3 million in accelerated accretion of purchase discount . the contractual interest rate on the subordinated debenture was 3-month libor plus 1.40 % , or 1.62 % as of december 31 , 2020. covid-19 pandemic-related response update - we have remained open and responded to customer needs throughout 2020. we more than doubled our charitable contributions to non-profit organizations in our community to over $ 1.0 million in 2020. in march 2020 , we began waiving all atm and overdraft fees and cancelling early withdrawal penalties for time certificate of deposits when allowed by law . we accommodated loan payment relief requests for borrowers with financial hardships and lowered interest rate floors on commercial prime rate loans . under the provisions of the coronavirus aid , relief and economic security act ( `` cares act `` ) of 2020 , bank of marin originated over 1,800 ppp loans to small businesses , reaching nearly 28,000 employees in our markets . in 2021 , we are once again diligently working with our customers to accommodate requests for round two of ppp 26 loans under the economic aid to hard-hit small businesses , nonprofits , and venues act ( `` economic aid act `` ) , which became law in december of 2020. paycheck protection program - while the ppp affords us an opportunity to assist our customers and community and requires a large of amount of human resources , the ppp loans do not pose a significant amount of risk of loss to the bank as they are 100 % guaranteed by the sba . as of december 31 , 2020 , there were 1,777 ppp loans outstanding totaling $ 291.6 million , net of $ 5.4 million in unearned fees . during the fourth quarter bank of marin opened a secure ppp loan forgiveness application portal and gave all ppp borrowers access to apply . as of december 31 , 2020 we received sba loan forgiveness payments totaling $ 10.9 million for 35 loans that were forgiven . of the total ppp loans rem aining , 74 % ( 1,309 loans ) totaling $ 58.7 million are less than or equal to $ 150 thousand and have access to streamlined forgiveness processing . on january 19 , 2021 , the bank launched the application process and began accepting loan requests for the second round of ppp , as revised by the economic aid act . as of march 11 , 2021 , we have received 974 loan applications totaling $ 131.6 million . payment relief - during 2020 , in accordance with section 4013 of the cares act , subsequently amended by the economic aid act , we elected to apply the temporary accounting relief provisions for loan modifications that met certain criteria , which would otherwise be designated as tdrs under existing gaap . of the 269 loans totaling $ 402.9 million granted payment relief since the onset of the pandemic , 222 loans or $ 324.2 million have resumed normal payments and 18 loans or $ 7.7 million paid off . as of december 31 , 2020 , 21 borrowing relationships with 29 loans totaling $ 71.0 million had requested additional payment relief . story_separator_special_tag the decrease was primarily due to $ 1.0 million in consulting expenses related to core processing contract negotiations in 2018 , lower data processing expenses in 2019 as a result of the renegotiation of the bank 's core systems contract , and lower federal deposit insurance corporation ( `` fdic `` ) deposit insurance expenses due to the fdic deposit insurance fund reserve exceeding its billing threshold in 2019. the decreases in non-interest expense were partially offset by $ 918 thousand higher salaries and related benefits as a result of annual merit increases , three additional full-time equivalent employees ( on average ) , and personnel severance , as well as higher recruiting fees recorded in other expenses . provision for income taxes income tax provisions reflect accruals for taxes at the applicable rates for federal income tax and california franchise tax based upon reported pre-tax income . provisions also reflect permanent differences between income for tax and financial reporting purposes ( such as earnings on tax exempt loans and municipal securities , boli , low-income housing tax credits , and stock-based compensation from the exercise of stock options , disqualifying dispositions of incentive stock options and vesting of restricted stock awards ) . the provision for income taxes totaled $ 10.3 million at an effective tax rate of 25.5 % in 2020 , compared to $ 11.7 million at an effective tax rate of 25.4 % in 2019 and $ 10.8 million at an effective tax rate of 24.9 % in 2018. the decrease in the provision in 2020 compared to 2019 reflected lower pre-tax income and higher tax-exempt interest income on municipal securities . the slight increase in the effective tax rate in 2020 as compared to 2019 was due to a favorable deferred tax liability true-up recognized in 2019 and a lower tax benefit from boli income in 2020. the increase in the effective tax rate in 2019 compared to 2018 was due to a higher level of tax benefits in 2018 from the exercise of non-qualified stock options and disqualifying dispositions of incentive stock options by former employees of bank of napa post-acquisition . we file a consolidated return in the u.s. federal tax jurisdiction and a combined return in the state of california tax jurisdiction . there were no ongoing federal or state income tax examinations at the issuance of this report . at december 31 , 2020 and 2019 , neither the bank nor bancorp had accruals for interest or penalties related to unrecognized tax benefits . financial condition our assets increased $ 204.6 million from december 31 , 2019 to december 31 , 2020 , mainly due to loan growth of $ 245.3 million , primarily driven by ppp loan originations , which were offset by a $ 68.3 million decrease in investment security balances . investment securities we maintain an investment securities portfolio to provide liquidity and to generate earnings on funds that have not been loaned to customers . management determines the maturities and types of securities to be purchased based on liquidity and interest rate risk position , and the desire to attain a reasonable investment yield balanced with risk exposure . table 5 shows the composition of the debt securities portfolio by expected maturity at december 31 , 2020 and 2019. expected maturities differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties . we estimate and update expected maturity dates regularly based on current and historical prepayment speeds . the weighted average life of the investment portfolio at december 31 , 2020 and 2019 was approximately five and six years , respectively . 32 table 5 investment securities replace_table_token_5_th 1 book value reflects cost , adjusted for accumulated amortization and accretion . 2 weighted average calculation is based on amortized cost of securities . 3 yields on tax-exempt municipal bonds are presented on a taxable equivalent basis , using federal tax rate of 21 % . the amortized cost of our investment securities portfolio decreased $ 79.3 million or 14 % during 2020. we purchased $ 97.5 million in securities in 2020 designated as available-for-sale to provide flexibility for liquidity and interest rate risk management . these purchases were offset by $ 143.1 million of paydowns , calls and maturities , and $ 32.8 million of sales during 2020. during 2020 , we purchased $ 57.6 million in obligations of state and political subdivisions , $ 31.0 million in collateralized mortgage obligations ( `` cmos `` ) and $ 9.0 million in debentures of government sponsored agencies . we consider agency debentures and cmos issued by u.s. government sponsored entities to have low credit risk as they carry the credit support of the u.s. federal government . the debentures , cmos and mbs issued by u.s. government sponsored agencies , state and municipal securities , and sba-backed securities made up 70.1 % , 22.1 % and 7.8 % of the portfolio at december 31 , 2020 , compared to 79.6 % , 12.4 % and 7.8 % , respectively at december 31 , 2019. see the discussion in the section captioned “ securities may lose value due to credit quality of the issuers ” in item 1a risk factors above . 33 at december 31 , 2020 , distribution of our investment in obligations of state and political subdivisions was as follows : replace_table_token_6_th the portion of the portfolio outside the state of california is distributed among 10 states . the largest concentrations outside california are in texas ( 55.3 % ) , washington ( 9.3 % ) , and maryland ( 6.4 % ) . during march 2020 , we strategically increased our credit exposure to obligations issued by high credit quality issuers in texas that are either guaranteed by the aaa-rated texas permanent school fund ( `` psf `` ) or backed by revenue sources from essential services such as

in fiscal 2015 , we launched a five-year transformational strategy designed to improve the performance of our business segments and strengthen our shared service capabilities . this strategy has driven our decisions on where we will operate and how we will achieve our goals in markets around the world . the 25 overall design of our business and organizational plan is intended to create sustainable and profitable growth and improve organizational capability . fiscal 2019 marked the completion of phase i of our multi-year transformation strategy , which delivered performance across a wide range of measures . we improved core sales growth by focusing on our leadership brands , made strategic acquisitions , became a more efficient operating company with strong global shared services , upgraded our organization and culture , improved inventory turns and return on invested capital , and returned capital to shareholders . fiscal 2020 begins phase ii of our transformation and is designed to drive the next five years of progress . the long-term objectives of phase ii include improved organic sales growth , continued margin expansion , and strategic and effective capital deployment . we expect phase ii will include continued investment in our leadership brands , with a focus on growing them through consumer-centric innovation , expanding them more aggressively outside the united states , and adding new brands through acquisition . we anticipate building further shared service capability and operating efficiency , as well as attracting , retaining , unifying and training the best people . in fiscal 2018 , we announced a restructuring plan ( referred to as “ project refuel ” ) intended to enhance the performance primarily in the beauty and former nutritional supplements segments . project refuel includes charges for a reduction-in-force and the elimination of certain contracts . during the first quarter of fiscal 2019 , we expanded project refuel to include the realignment and streamlining of our supply chain structure . we are targeting total annualized profit improvements of approximately $ 8.0 million to $ 10.0 million over the duration of the plan . we estimate the plan to be completed during fiscal 2020 and expect to incur total restructuring charges of approximately $ 7.0 million . restructuring provisions are determined based on estimates prepared at the time the restructuring actions are approved by management and are revised periodically . see note 12 to the accompanying consolidated financial statements for additional information . significant trends impacting the business potential impact of tariffs during fiscal 2019 , the office of the u.s. trade representative ( ‘ ‘ ustr `` ) imposed additional tariffs on products imported from china . we purchase a high concentration of our products from unaffiliated manufacturers located in china . this concentration exposes us to risks associated with doing business globally , including changes in tariffs . the tariff increases that have been implemented by the ustr began to impact our cost of goods sold in the third quarter of fiscal 2019. in total , the net unmitigated tariff impact that unfavorably impacted cost of sales during fiscal 2019 was approximately $ 4.0 million . our implemented pricing actions became partially effective during the fourth quarter of fiscal 2019 and will continue into the first quarter of fiscal 2020. this is due to the negotiation and notice periods involved in taking pricing actions with our retail customers . although our pricing actions are intended to offset the full gross profit impact of tariff increases , there are no assurances that the pricing action will not reduce retail consumption or customer orders in the short-term . potential impact of brexit the potential exit of the united kingdom ( the `` u.k. `` ) from european union ( `` e.u . `` ) membership ( commonly referred to as `` brexit `` ) could cause disruptions to and create uncertainty surrounding our business , including affecting our relationships with our existing and future customers , suppliers and employees , which could have an adverse effect on our business , financial results and operations . negotiations are ongoing to determine the future terms of the u.k. 's relationship with the e.u . , including the terms of trade between the u.k. and the e.u . the effects of brexit will depend on any agreements the u.k. makes to retain access to e.u . markets either during a transitional period or more permanently . these measures could potentially disrupt the markets we serve and the tax jurisdictions in which we 26 operate , adversely change tax benefits or liabilities in these or other jurisdictions , and cause us to lose customers , suppliers , and employees . in addition , brexit could lead to legal uncertainty and potentially divergent national laws and regulations as the u.k. determines which e.u . laws to replace or replicate . foreign currency exchange rate fluctuations due to the nature of our operations , we have exposure to the impact of fluctuations in exchange rates from transactions that are denominated in a currency other than our reporting currency ( the u.s. dollar ) . the most significant currencies affecting our operating results are the british pound , euro , canadian dollar , and mexican peso . for fiscal 2019 , changes in foreign currency exchange rates had an unfavorable impact on consolidated u.s. dollar reported net sales revenue of approximately $ 1.2 million , or 0.1 % . for fiscal 2018 , changes in foreign currency exchange rates had a favorable impact on consolidated u.s. dollar reported net sales revenue of approximately $ 5.2 million , or 0.4 % . consumer spending and changes in shopping preferences our business depends upon discretionary consumer demand for most of our products and primarily operates within mature and highly developed consumer markets . the principal driver of our operating performance is the strength of the u.s. retail economy . story_separator_special_tag 33 selling general and administrative expense comparison of fiscal 2019 to 2018 consolidated sg & a ratio decreased 0.7 percentage points to 28.0 % in fiscal 2019 , compared to 28.7 % in fiscal 2018. the decrease in the consolidated sg & a ratio was primarily due to : lower amortization expense ; the favorable impact from foreign currency exchange and forward contract settlements the favorable comparative impact of a $ 3.6 million charge related to the bankruptcy of tru in the same period last year ; the favorable impact of a higher mix of shipments made on a direct import basis ; and the impact that higher overall net sales had on operating leverage . these factors were partially offset by : higher advertising expense ; higher share-based compensation expense ; and higher freight expense . comparison of fiscal 2018 to 2017 consolidated sg & a ratio remained flat at 28.7 % in fiscal 2018 and 2017. fiscal 2018 included a $ 3.6 million charge related to the bankruptcy of tru , higher overall marketing , advertising and new product development expense in support of our leadership brands and an unfavorable impact from foreign currency exchange and forward contract settlements . these factors were offset by the favorable comparison from a $ 1.5 million patent litigation charge in fiscal 2017 , improved distribution and logistics efficiency and lower outbound freight expense , and the favorable impact that higher overall sales had on operating leverage . asset impairment charges fiscal 2019 we did not record any asset impairment charges in fiscal 2019. fiscal 2018 as a result of our interim and annual testing of indefinite-lived trademarks , we recorded non-cash asset impairment charges of $ 15.4 million ( $ 13.8 million after tax ) in continuing operations . the charges were related to certain trademarks in our beauty segment . fiscal 2017 as a result of our testing of indefinite-lived trademarks , we recorded non-cash asset impairment charges of $ 2.9 million ( $ 2.5 million after tax ) in continuing operations . these charges were related to certain trademarks in our beauty segment . restructuring charges fiscal 2019 we incurred $ 3.6 million of pre-tax restructuring costs related to employee severance and termination benefits under project refuel . during fiscal 2019 , we made total cash restructuring payments of $ 3.1 million and had a remaining liability of $ 1.2 million as of february 28 , 2019. fiscal 2018 we incurred $ 1.9 million of pre-tax restructuring costs related to employee severance and termination benefits and contract termination costs under project refuel . during fiscal 2018 , we made cash restructuring payments of $ 1.3 million and had a remaining liability of $ 0.5 million as of february 28 , 2018 . 34 fiscal 2017 we did not record any restructuring charges in fiscal 2017 . 35 operating income , operating margin , adjusted operating income ( non-gaap ) , and adjusted operating margin ( non-gaap ) by segment in order to provide a better understanding of the impact of certain items on our operating income , the below tables report the comparative after tax impact of non‐cash asset impairment charges , restructuring charges , patent litigation charges , the tru bankruptcy charge , amortization of intangible assets , and non‐cash share‐based compensation , as applicable , on operating income and operating margin for each segment and in total for the periods covered below . adjusted operating income and adjusted operating margin may be considered non-gaap financial measures as contemplated by sec regulation g , rule 100. for additional information regarding management 's decision to present this non-gaap financial information , see the introduction to this item 7. , “ management 's discussion and analysis of financial condition and results of operation . ” replace_table_token_11_th replace_table_token_12_th replace_table_token_13_th ( 1 ) fiscal 2017 includes eleven and one-half months of incremental operating results for hydro flask , acquired on march 18 , 2016. fiscal 2018 includes a full year of operating results for hydro flask . 36 consolidated operating income comparison of fiscal 2019 to 2018 consolidated operating income was $ 199.4 million , or 12.7 % of net sales , in fiscal 2019 , compared to consolidated operating income of $ 169.1 million , or 11.4 % of net sales , in fiscal 2018. fiscal 2019 includes pre-tax restructuring charges of $ 3.6 million associated with project refuel . fiscal 2018 included pre-tax non-cash asset impairment charges of $ 15.4 million , a $ 3.6 million charge related to the tru bankruptcy and pre-tax restructuring charges of $ 1.9 million . the effect of these items in both years favorably impacted the year-over-year comparison of operating margin by a combined 1.1 percentage points . the remaining improvement in fiscal 2019 consolidated operating margin was driven by : a higher mix of leadership brand sales at a higher operating margin ; lower amortization expense ; and the favorable impact of increased operating leverage from net sales growth . these factors were partially offset by : a less favorable channel and product mix ; higher advertising expense ; the impact of tariff increases ; and higher share-based compensation expense . consolidated adjusted operating income increased 6.9 % , or $ 15.4 million , to $ 239.2 million in fiscal 2019 compared to $ 223.9 million in fiscal 2018 . consolidated adjusted operating margin increased 0.2 percentage points to 15.3 % of consolidated net sales revenue in fiscal 2019 , compared to 15.1 % in fiscal 2018 . comparison of fiscal 2018 to 2017 consolidated operating income was $ 169.1 million in fiscal 2018 compared to $ 169.7 million in fiscal 2017 . consolidated operating margin was 11.4 % in fiscal 2018 compared to 12.1 % in fiscal 2017 . fiscal 2018 included pre-tax non-cash asset impairment charges totaling $ 15.4 million , a $ 3.6 million charge related to the tru bankruptcy and pre-tax restructuring charges of $ 1.9 million associated with

total current and long term debt ( 2 ) ÷ ebitda ( 1 ) + pro forma effect of acquisitions maximum currently allowed : 3.50 to 1.00 ( 3 ) key definitions : ebit : earnings before non-cash charges , interest expense and taxes ebitda : ebit + depreciation and amortization expense + share-based compensation pro forma effect of acquisitions : for any acquisition , pre-acquisition ebitda of the acquired business is included so that the ebitda of the acquired business included in the computation equals its twelve month trailing total . notes : ( 1 ) computed using totals for the latest reported four consecutive fiscal quarters . ( 2 ) computed using the ending balances as of the latest reported fiscal quarter . ( 3 ) in the event a qualified acquisition is consumated , the maximum leverage ratio is 4.25 to 1.00. contractual obligations our contractual obligations and commercial commitments in effect as of the end of fiscal 2019 were : replace_table_token_18_th ( 1 ) we estimate our future obligations for interest on our floating rate debt by assuming the weighted average interest rates in effect on each floating rate debt obligation at february 28 , 2019 remain constant into the future . this is an estimate , as actual rates will vary over time . in addition , for the credit agreement , we assume that the balance outstanding as of february 28 , 2019 remains the same for the remaining term of the agreement . the actual balance outstanding under the credit agreement may fluctuate significantly in future periods , depending on the availability of cash flow from operations and future investing and financing considerations . ( 2 ) in addition to the contractual obligations and commercial commitments in the table above , as of february 28 , 2019 , we have recorded a provision for uncertain tax positions of $ 3.2 million . we are unable to reliably estimate the timing of most of the future payments , if any , related to uncertain tax positions ; therefore , we have excluded these tax liabilities from the table above .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```total current and long term debt ( 2 ) ÷ ebitda ( 1 ) + pro forma effect of acquisitions maximum currently allowed : 3.50 to 1.00 ( 3 ) key definitions : ebit : earnings before non-cash charges , interest expense and taxes ebitda : ebit + depreciation and amortization expense + share-based compensation pro forma effect of acquisitions : for any acquisition , pre-acquisition ebitda of the acquired business is included so that the ebitda of the acquired business included in the computation equals its twelve month trailing total . notes : ( 1 ) computed using totals for the latest reported four consecutive fiscal quarters . ( 2 ) computed using the ending balances as of the latest reported fiscal quarter . ( 3 ) in the event a qualified acquisition is consumated , the maximum leverage ratio is 4.25 to 1.00. contractual obligations our contractual obligations and commercial commitments in effect as of the end of fiscal 2019 were : replace_table_token_18_th ( 1 ) we estimate our future obligations for interest on our floating rate debt by assuming the weighted average interest rates in effect on each floating rate debt obligation at february 28 , 2019 remain constant into the future . this is an estimate , as actual rates will vary over time . in addition , for the credit agreement , we assume that the balance outstanding as of february 28 , 2019 remains the same for the remaining term of the agreement . the actual balance outstanding under the credit agreement may fluctuate significantly in future periods , depending on the availability of cash flow from operations and future investing and financing considerations . ( 2 ) in addition to the contractual obligations and commercial commitments in the table above , as of february 28 , 2019 , we have recorded a provision for uncertain tax positions of $ 3.2 million . we are unable to reliably estimate the timing of most of the future payments , if any , related to uncertain tax positions ; therefore , we have excluded these tax liabilities from the table above . ``` Suspicious Activity Report : in fiscal 2015 , we launched a five-year transformational strategy designed to improve the performance of our business segments and strengthen our shared service capabilities . this strategy has driven our decisions on where we will operate and how we will achieve our goals in markets around the world . the 25 overall design of our business and organizational plan is intended to create sustainable and profitable growth and improve organizational capability . fiscal 2019 marked the completion of phase i of our multi-year transformation strategy , which delivered performance across a wide range of measures . we improved core sales growth by focusing on our leadership brands , made strategic acquisitions , became a more efficient operating company with strong global shared services , upgraded our organization and culture , improved inventory turns and return on invested capital , and returned capital to shareholders . fiscal 2020 begins phase ii of our transformation and is designed to drive the next five years of progress . the long-term objectives of phase ii include improved organic sales growth , continued margin expansion , and strategic and effective capital deployment . we expect phase ii will include continued investment in our leadership brands , with a focus on growing them through consumer-centric innovation , expanding them more aggressively outside the united states , and adding new brands through acquisition . we anticipate building further shared service capability and operating efficiency , as well as attracting , retaining , unifying and training the best people . in fiscal 2018 , we announced a restructuring plan ( referred to as “ project refuel ” ) intended to enhance the performance primarily in the beauty and former nutritional supplements segments . project refuel includes charges for a reduction-in-force and the elimination of certain contracts . during the first quarter of fiscal 2019 , we expanded project refuel to include the realignment and streamlining of our supply chain structure . we are targeting total annualized profit improvements of approximately $ 8.0 million to $ 10.0 million over the duration of the plan . we estimate the plan to be completed during fiscal 2020 and expect to incur total restructuring charges of approximately $ 7.0 million . restructuring provisions are determined based on estimates prepared at the time the restructuring actions are approved by management and are revised periodically . see note 12 to the accompanying consolidated financial statements for additional information . significant trends impacting the business potential impact of tariffs during fiscal 2019 , the office of the u.s. trade representative ( ‘ ‘ ustr `` ) imposed additional tariffs on products imported from china . we purchase a high concentration of our products from unaffiliated manufacturers located in china . this concentration exposes us to risks associated with doing business globally , including changes in tariffs . the tariff increases that have been implemented by the ustr began to impact our cost of goods sold in the third quarter of fiscal 2019. in total , the net unmitigated tariff impact that unfavorably impacted cost of sales during fiscal 2019 was approximately $ 4.0 million . our implemented pricing actions became partially effective during the fourth quarter of fiscal 2019 and will continue into the first quarter of fiscal 2020. this is due to the negotiation and notice periods involved in taking pricing actions with our retail customers . although our pricing actions are intended to offset the full gross profit impact of tariff increases , there are no assurances that the pricing action will not reduce retail consumption or customer orders in the short-term . potential impact of brexit the potential exit of the united kingdom ( the `` u.k. `` ) from european union ( `` e.u . `` ) membership ( commonly referred to as `` brexit `` ) could cause disruptions to and create uncertainty surrounding our business , including affecting our relationships with our existing and future customers , suppliers and employees , which could have an adverse effect on our business , financial results and operations . negotiations are ongoing to determine the future terms of the u.k. 's relationship with the e.u . , including the terms of trade between the u.k. and the e.u . the effects of brexit will depend on any agreements the u.k. makes to retain access to e.u . markets either during a transitional period or more permanently . these measures could potentially disrupt the markets we serve and the tax jurisdictions in which we 26 operate , adversely change tax benefits or liabilities in these or other jurisdictions , and cause us to lose customers , suppliers , and employees . in addition , brexit could lead to legal uncertainty and potentially divergent national laws and regulations as the u.k. determines which e.u . laws to replace or replicate . foreign currency exchange rate fluctuations due to the nature of our operations , we have exposure to the impact of fluctuations in exchange rates from transactions that are denominated in a currency other than our reporting currency ( the u.s. dollar ) . the most significant currencies affecting our operating results are the british pound , euro , canadian dollar , and mexican peso . for fiscal 2019 , changes in foreign currency exchange rates had an unfavorable impact on consolidated u.s. dollar reported net sales revenue of approximately $ 1.2 million , or 0.1 % . for fiscal 2018 , changes in foreign currency exchange rates had a favorable impact on consolidated u.s. dollar reported net sales revenue of approximately $ 5.2 million , or 0.4 % . consumer spending and changes in shopping preferences our business depends upon discretionary consumer demand for most of our products and primarily operates within mature and highly developed consumer markets . the principal driver of our operating performance is the strength of the u.s. retail economy . story_separator_special_tag 33 selling general and administrative expense comparison of fiscal 2019 to 2018 consolidated sg & a ratio decreased 0.7 percentage points to 28.0 % in fiscal 2019 , compared to 28.7 % in fiscal 2018. the decrease in the consolidated sg & a ratio was primarily due to : lower amortization expense ; the favorable impact from foreign currency exchange and forward contract settlements the favorable comparative impact of a $ 3.6 million charge related to the bankruptcy of tru in the same period last year ; the favorable impact of a higher mix of shipments made on a direct import basis ; and the impact that higher overall net sales had on operating leverage . these factors were partially offset by : higher advertising expense ; higher share-based compensation expense ; and higher freight expense . comparison of fiscal 2018 to 2017 consolidated sg & a ratio remained flat at 28.7 % in fiscal 2018 and 2017. fiscal 2018 included a $ 3.6 million charge related to the bankruptcy of tru , higher overall marketing , advertising and new product development expense in support of our leadership brands and an unfavorable impact from foreign currency exchange and forward contract settlements . these factors were offset by the favorable comparison from a $ 1.5 million patent litigation charge in fiscal 2017 , improved distribution and logistics efficiency and lower outbound freight expense , and the favorable impact that higher overall sales had on operating leverage . asset impairment charges fiscal 2019 we did not record any asset impairment charges in fiscal 2019. fiscal 2018 as a result of our interim and annual testing of indefinite-lived trademarks , we recorded non-cash asset impairment charges of $ 15.4 million ( $ 13.8 million after tax ) in continuing operations . the charges were related to certain trademarks in our beauty segment . fiscal 2017 as a result of our testing of indefinite-lived trademarks , we recorded non-cash asset impairment charges of $ 2.9 million ( $ 2.5 million after tax ) in continuing operations . these charges were related to certain trademarks in our beauty segment . restructuring charges fiscal 2019 we incurred $ 3.6 million of pre-tax restructuring costs related to employee severance and termination benefits under project refuel . during fiscal 2019 , we made total cash restructuring payments of $ 3.1 million and had a remaining liability of $ 1.2 million as of february 28 , 2019. fiscal 2018 we incurred $ 1.9 million of pre-tax restructuring costs related to employee severance and termination benefits and contract termination costs under project refuel . during fiscal 2018 , we made cash restructuring payments of $ 1.3 million and had a remaining liability of $ 0.5 million as of february 28 , 2018 . 34 fiscal 2017 we did not record any restructuring charges in fiscal 2017 . 35 operating income , operating margin , adjusted operating income ( non-gaap ) , and adjusted operating margin ( non-gaap ) by segment in order to provide a better understanding of the impact of certain items on our operating income , the below tables report the comparative after tax impact of non‐cash asset impairment charges , restructuring charges , patent litigation charges , the tru bankruptcy charge , amortization of intangible assets , and non‐cash share‐based compensation , as applicable , on operating income and operating margin for each segment and in total for the periods covered below . adjusted operating income and adjusted operating margin may be considered non-gaap financial measures as contemplated by sec regulation g , rule 100. for additional information regarding management 's decision to present this non-gaap financial information , see the introduction to this item 7. , “ management 's discussion and analysis of financial condition and results of operation . ” replace_table_token_11_th replace_table_token_12_th replace_table_token_13_th ( 1 ) fiscal 2017 includes eleven and one-half months of incremental operating results for hydro flask , acquired on march 18 , 2016. fiscal 2018 includes a full year of operating results for hydro flask . 36 consolidated operating income comparison of fiscal 2019 to 2018 consolidated operating income was $ 199.4 million , or 12.7 % of net sales , in fiscal 2019 , compared to consolidated operating income of $ 169.1 million , or 11.4 % of net sales , in fiscal 2018. fiscal 2019 includes pre-tax restructuring charges of $ 3.6 million associated with project refuel . fiscal 2018 included pre-tax non-cash asset impairment charges of $ 15.4 million , a $ 3.6 million charge related to the tru bankruptcy and pre-tax restructuring charges of $ 1.9 million . the effect of these items in both years favorably impacted the year-over-year comparison of operating margin by a combined 1.1 percentage points . the remaining improvement in fiscal 2019 consolidated operating margin was driven by : a higher mix of leadership brand sales at a higher operating margin ; lower amortization expense ; and the favorable impact of increased operating leverage from net sales growth . these factors were partially offset by : a less favorable channel and product mix ; higher advertising expense ; the impact of tariff increases ; and higher share-based compensation expense . consolidated adjusted operating income increased 6.9 % , or $ 15.4 million , to $ 239.2 million in fiscal 2019 compared to $ 223.9 million in fiscal 2018 . consolidated adjusted operating margin increased 0.2 percentage points to 15.3 % of consolidated net sales revenue in fiscal 2019 , compared to 15.1 % in fiscal 2018 . comparison of fiscal 2018 to 2017 consolidated operating income was $ 169.1 million in fiscal 2018 compared to $ 169.7 million in fiscal 2017 . consolidated operating margin was 11.4 % in fiscal 2018 compared to 12.1 % in fiscal 2017 . fiscal 2018 included pre-tax non-cash asset impairment charges totaling $ 15.4 million , a $ 3.6 million charge related to the tru bankruptcy and pre-tax restructuring charges of $ 1.9 million associated with

leveraging our scientific insights and clinical experience , we have acquired or in-licensed three proprietary compounds that are currently in development . we believe these compounds have innovative mechanisms of action and therapeutic profiles that potentially address the unmet needs of patients with these diseases . our product portfolio and potential indications include : roluperidone for the treatment of schizophrenia ; seltorexant ( also known as min-202 or jnj-42847922 ) , which we are co-developing with janssen pharmaceutica nv ( “ janssen ” ) , for the treatment of insomnia disorder and major depressive disorder ( “ mdd ” ) ; and min-301 for the treatment of parkinson 's disease . we believe our product candidates have significant potential to improve the lives of a large number of affected patients and their families who are currently not well-served by available therapies . in november 2013 , cyrenaic pharmaceuticals , inc. ( “ cyrenaic ” ) , and sonkei pharmaceuticals , inc. ( “ sonkei ” ) , merged , and the combined company was renamed minerva neurosciences , inc. cyrenaic had been incorporated in 2007 and had exclusively licensed roluperidone from mitsubishi tanabe pharma corporation ( “ mtpc ” ) . sonkei had been incorporated in 2008 and had exclusively licensed min-117 from mtpc . we executed the merger as we saw an opportunity to better serve an underserved patient population through combining a portfolio of promising product candidates targeting cns diseases . as a result of the merger , we have the rights to develop and commercialize roluperidone and min-117 globally , excluding most of asia . we further expanded our product candidate portfolio in february 2014 by acquiring the shares of mind-nrg sa ( “ mind-nrg ” ) , which had exclusive rights to develop and commercialize min-301 . in addition , in february 2014 we entered into a co-development and license agreement with janssen , one of the janssen pharmaceutical companies of johnson & johnson , for the co-development of seltorexant . we entered into an amendment to this agreement in june 2017 that took effect on august 29 , 2017. under the amended agreement , we gained global strategic control of the development of seltorexant to treat insomnia , and janssen waived its right to royalties on seltorexant insomnia sales in the minerva territory , which includes the european union , switzerland , liechtenstein , iceland and norway ( the “ minerva territory ” ) . we retain our rights to seltorexant as adjunctive therapy for mdd , which include an exclusive license in the minerva territory with royalties payable by us to janssen , and royalties on sales payable by janssen to minerva elsewhere worldwide . ( see seltorexant – amendment to co-development and license agreement below . ) we have not received regulatory approvals to commercialize any of our product candidates , and we have not generated any revenue from the sales or license of our product candidates . we have incurred significant operating losses since inception . we expect to incur net losses and negative cash flow from operating activities for the foreseeable future in connection with the clinical development and the potential regulatory approval , infrastructure development and commercialization of our product candidates . financial overview revenue none of our product candidates have been approved for commercialization and we have not received any revenue in connection with the sale or license of our product candidates . as a result of the amendment to our co-development and license agreement with janssen , we have deferred revenue that will be recognized in future periods , the timing of which is subject to certain future events that will be evaluated in conjunction with the relevant revenue recognition pronouncements . 56 research and development expenses research and development expenses consists of costs incurred in connection with the development of our product candidates , including : fees paid to consultants and clinical research organizations , or cros , including in connection with our non-clinical and clinical trials , and other related clinical trial fees , such as for investigator grants , patient screening , laboratory work , clinical trial database management , clinical trial material management and statistical compilation and analysis ; licensing fees ; costs related to acquiring clinical trial materials ; costs related to compliance with regulatory requirements ; and costs related to salaries , benefits , bonuses and stock-based compensation granted to employees in research and development functions . we expense research and development costs as they are incurred . the historic direct costs relating to each of our product candidates are summarized as follows ( in thousands ) : replace_table_token_1_th ( 1 ) the expense for the years ended december 31 , 2019 and 2018 excludes non cash stock-based compensation expense of $ 2.646 million and $ 2.257 million , respectively . ( 2 ) the min-117 expenses for the year ended december 31 , 2019 includes a $ 19.0 million expense for the impairment of the min-117 in-process research and development asset . ( 3 ) as a result of the amendment with janssen , we did not incur any development expense during the year ended december 31 , 2019 or 2018. completion dates and completion costs can vary significantly for each product candidate and are difficult to predict . we anticipate we will make determinations as to which programs to pursue and how much funding to direct to each program on an ongoing basis in response to the scientific and clinical success or failure of each product candidate , the estimated costs to continue the development program relative to our available resources , as well as an ongoing assessment as to each product candidate 's commercialpotential . story_separator_special_tag an ipr & d asset is considered abandoned when it ceases to be used ( that is , research and development efforts associated with the asset have ceased , and there are no plans to sell or license the asset or derive defensive value from the asset ) . at that point , the asset is considered to be disposed of and is written off . upon successful completion of each project , we will make a determination about the then remaining useful life of the intangible asset and begin amortization . we test our indefinite-lived intangibles , ipr & d assets , for impairment annually on november 30 and more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired . in estimating the fair value of ipr & d , an income approach was used with a discounted cash flow analysis . many assumptions and estimates are included in this analysis including revenue and expense projections , probability of success factors , expected product launch date and a weighted average cost of capital of 20.0 % . 62 potential triggering e vents that could indicate whether an impairment to the ipr & d may have occurred include : clinical trial results where the compound under investigation did not meet pre ‑established criteria or clinical endpoints , failure to obtain regulatory approval , the in ability to fund future clinical trials , failure to obtain patent protection , adverse changes in the regulatory environment , the approval of competing therapies or compounds , adverse changes in applicable laws or regulations and a variety of other circumsta nces . the impairment of ipr & d could have a material adverse impact on our financial condition . in order to determine whether an impairment has occurred , management must evaluate the events and incorporate multiple assumptions including : costs associated wi th continuing the development program , competing therapies or compounds , potential market size , estimated future cash flows and other factors . when testing indefinite-lived intangibles for impairment , we may assess qualitative factors for our indefinite-li ved intangibles to determine whether it is more likely than not ( that is , a likelihood of more than 50 percent ) that the asset is impaired . alternatively , we may bypass this qualitative assessment for some or all of our indefinite-lived intangibles and per form the quantitative impairment test that compares the fair value of the indefinite-lived intangible asset with the asset 's carrying amount . we test our ipr & d for impairment as of november 30. there was no impairment of the mind-nrg ipr & d asset for the ye ars ended december 31 , 2019 or 2018. impairment of min-117 in-process research and development asset . as a result of our phase 2b trial of min-117 in adult patients suffering from moderate to severe mdd not meeting its primary and key secondary endpoints and our decision not to further the clinical development of min-117 in mdd , we determined that the min-117 ipr & d is fully impaired and recognized a $ 19.0 million expense , which was included as a component of research and development expense , during the year ended december 31 , 2019. there was no impairment of the min-117 ipr & d for the year ended december 31 , 2018. goodwill we test our goodwill for impairment annually , or whenever events or changes in circumstances indicate an impairment may have occurred , by comparing our reporting unit 's carrying value to its fair value . impairment may result from , among other things , deterioration in the performance of the acquired business , adverse market conditions , adverse changes in applicable laws or regulations and a variety of other circumstances . if we determine that an impairment has occurred , we are required to record a write-down of the carrying value and charge the impairment as an operating expense in the period the determination is made . in evaluating the recoverability of the carrying value of goodwill , we must make assumptions regarding estimated future cash flows and other factors to determine the fair value of the acquired assets . changes in strategy or market conditions could significantly impact those judgments in the future and require an adjustment to the recorded balances . we test our goodwill for impairment as of november 30. there was no impairment of goodwill for the years ended december 31 , 2019 or 2018. income taxes deferred tax assets and liabilities are determined based on differences between financial reporting and tax reporting bases of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse . uncertain tax positions are evaluated and if appropriate , the amount of unrecognized tax benefits are recorded within deferred tax assets . deferred tax assets are evaluated for realization based on a more-likely-than-not criterion in determining if a valuation allowance should be provided . valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized . we use a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken , or expected to be taken , in a tax return . we have elected to treat interest and penalties , to the extent they arise , as a component of income taxes . there was no interest or penalties related to income taxes for the years ended december 31 , 2019 or 2018. income tax years beginning in 2012 for federal and state purposes are generally subject to examination by taxing authorities , although net operating losses from all prior years are subject to examinations and adjustments for at least three years following the year in which the tax attributes are utilized . recent accounting pronouncements from time to time ,

cash flows the tables below set forth our significant sources and uses of cash for the periods set forth below . replace_table_token_3_th net cash used in operating activities net cash used in operating activities of approximately $ 43.4 million during the year ended december 31 , 2019 was primarily due to our net loss of $ 72.2 million , a decrease of $ 2.2 million in deferred taxes , and amortization of investments of $ 0.8 million , partially offset by an impairment expense of in-process research and development assets of $ 19.0 million , stock-based compensation expense of $ 9.2 million , an increase in accrued expenses $ 2.3 million , a decrease in prepaid expenses of $ 0.7 million , and an increase in accounts payable of $ 0.6 million . net cash used in operating activities of approximately $ 41.9 million during the year ended december 31 , 2018 was primarily due to our net loss of $ 50.2 million , an increase in prepaid expenses of $ 0.6 million and amortization of investments of $ 0.1 million , partially offset by stock-based compensation expense of $ 8.2 million , an increase in accounts payable of $ 0.4 million and an increase in accrued expenses $ 0.4 million . net cash provided by investing activities net cash provided by investing activities of approximately $ 14.1 million during the year ended december 31 , 2019 was primarily due to the maturity and redemption of marketable securities of $ 75.2 million , partially offset by the purchase of marketable securities of $ 61.1 million . net cash provided by investing activities of approximately $ 69.5 million during the year ended december 31 , 2018 was primarily due to the maturity and redemption of marketable securities of $ 110.2 million , partially offset by the purchase of marketable securities of $ 40.7 million .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash flows the tables below set forth our significant sources and uses of cash for the periods set forth below . replace_table_token_3_th net cash used in operating activities net cash used in operating activities of approximately $ 43.4 million during the year ended december 31 , 2019 was primarily due to our net loss of $ 72.2 million , a decrease of $ 2.2 million in deferred taxes , and amortization of investments of $ 0.8 million , partially offset by an impairment expense of in-process research and development assets of $ 19.0 million , stock-based compensation expense of $ 9.2 million , an increase in accrued expenses $ 2.3 million , a decrease in prepaid expenses of $ 0.7 million , and an increase in accounts payable of $ 0.6 million . net cash used in operating activities of approximately $ 41.9 million during the year ended december 31 , 2018 was primarily due to our net loss of $ 50.2 million , an increase in prepaid expenses of $ 0.6 million and amortization of investments of $ 0.1 million , partially offset by stock-based compensation expense of $ 8.2 million , an increase in accounts payable of $ 0.4 million and an increase in accrued expenses $ 0.4 million . net cash provided by investing activities net cash provided by investing activities of approximately $ 14.1 million during the year ended december 31 , 2019 was primarily due to the maturity and redemption of marketable securities of $ 75.2 million , partially offset by the purchase of marketable securities of $ 61.1 million . net cash provided by investing activities of approximately $ 69.5 million during the year ended december 31 , 2018 was primarily due to the maturity and redemption of marketable securities of $ 110.2 million , partially offset by the purchase of marketable securities of $ 40.7 million . ``` Suspicious Activity Report : leveraging our scientific insights and clinical experience , we have acquired or in-licensed three proprietary compounds that are currently in development . we believe these compounds have innovative mechanisms of action and therapeutic profiles that potentially address the unmet needs of patients with these diseases . our product portfolio and potential indications include : roluperidone for the treatment of schizophrenia ; seltorexant ( also known as min-202 or jnj-42847922 ) , which we are co-developing with janssen pharmaceutica nv ( “ janssen ” ) , for the treatment of insomnia disorder and major depressive disorder ( “ mdd ” ) ; and min-301 for the treatment of parkinson 's disease . we believe our product candidates have significant potential to improve the lives of a large number of affected patients and their families who are currently not well-served by available therapies . in november 2013 , cyrenaic pharmaceuticals , inc. ( “ cyrenaic ” ) , and sonkei pharmaceuticals , inc. ( “ sonkei ” ) , merged , and the combined company was renamed minerva neurosciences , inc. cyrenaic had been incorporated in 2007 and had exclusively licensed roluperidone from mitsubishi tanabe pharma corporation ( “ mtpc ” ) . sonkei had been incorporated in 2008 and had exclusively licensed min-117 from mtpc . we executed the merger as we saw an opportunity to better serve an underserved patient population through combining a portfolio of promising product candidates targeting cns diseases . as a result of the merger , we have the rights to develop and commercialize roluperidone and min-117 globally , excluding most of asia . we further expanded our product candidate portfolio in february 2014 by acquiring the shares of mind-nrg sa ( “ mind-nrg ” ) , which had exclusive rights to develop and commercialize min-301 . in addition , in february 2014 we entered into a co-development and license agreement with janssen , one of the janssen pharmaceutical companies of johnson & johnson , for the co-development of seltorexant . we entered into an amendment to this agreement in june 2017 that took effect on august 29 , 2017. under the amended agreement , we gained global strategic control of the development of seltorexant to treat insomnia , and janssen waived its right to royalties on seltorexant insomnia sales in the minerva territory , which includes the european union , switzerland , liechtenstein , iceland and norway ( the “ minerva territory ” ) . we retain our rights to seltorexant as adjunctive therapy for mdd , which include an exclusive license in the minerva territory with royalties payable by us to janssen , and royalties on sales payable by janssen to minerva elsewhere worldwide . ( see seltorexant – amendment to co-development and license agreement below . ) we have not received regulatory approvals to commercialize any of our product candidates , and we have not generated any revenue from the sales or license of our product candidates . we have incurred significant operating losses since inception . we expect to incur net losses and negative cash flow from operating activities for the foreseeable future in connection with the clinical development and the potential regulatory approval , infrastructure development and commercialization of our product candidates . financial overview revenue none of our product candidates have been approved for commercialization and we have not received any revenue in connection with the sale or license of our product candidates . as a result of the amendment to our co-development and license agreement with janssen , we have deferred revenue that will be recognized in future periods , the timing of which is subject to certain future events that will be evaluated in conjunction with the relevant revenue recognition pronouncements . 56 research and development expenses research and development expenses consists of costs incurred in connection with the development of our product candidates , including : fees paid to consultants and clinical research organizations , or cros , including in connection with our non-clinical and clinical trials , and other related clinical trial fees , such as for investigator grants , patient screening , laboratory work , clinical trial database management , clinical trial material management and statistical compilation and analysis ; licensing fees ; costs related to acquiring clinical trial materials ; costs related to compliance with regulatory requirements ; and costs related to salaries , benefits , bonuses and stock-based compensation granted to employees in research and development functions . we expense research and development costs as they are incurred . the historic direct costs relating to each of our product candidates are summarized as follows ( in thousands ) : replace_table_token_1_th ( 1 ) the expense for the years ended december 31 , 2019 and 2018 excludes non cash stock-based compensation expense of $ 2.646 million and $ 2.257 million , respectively . ( 2 ) the min-117 expenses for the year ended december 31 , 2019 includes a $ 19.0 million expense for the impairment of the min-117 in-process research and development asset . ( 3 ) as a result of the amendment with janssen , we did not incur any development expense during the year ended december 31 , 2019 or 2018. completion dates and completion costs can vary significantly for each product candidate and are difficult to predict . we anticipate we will make determinations as to which programs to pursue and how much funding to direct to each program on an ongoing basis in response to the scientific and clinical success or failure of each product candidate , the estimated costs to continue the development program relative to our available resources , as well as an ongoing assessment as to each product candidate 's commercialpotential . story_separator_special_tag an ipr & d asset is considered abandoned when it ceases to be used ( that is , research and development efforts associated with the asset have ceased , and there are no plans to sell or license the asset or derive defensive value from the asset ) . at that point , the asset is considered to be disposed of and is written off . upon successful completion of each project , we will make a determination about the then remaining useful life of the intangible asset and begin amortization . we test our indefinite-lived intangibles , ipr & d assets , for impairment annually on november 30 and more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired . in estimating the fair value of ipr & d , an income approach was used with a discounted cash flow analysis . many assumptions and estimates are included in this analysis including revenue and expense projections , probability of success factors , expected product launch date and a weighted average cost of capital of 20.0 % . 62 potential triggering e vents that could indicate whether an impairment to the ipr & d may have occurred include : clinical trial results where the compound under investigation did not meet pre ‑established criteria or clinical endpoints , failure to obtain regulatory approval , the in ability to fund future clinical trials , failure to obtain patent protection , adverse changes in the regulatory environment , the approval of competing therapies or compounds , adverse changes in applicable laws or regulations and a variety of other circumsta nces . the impairment of ipr & d could have a material adverse impact on our financial condition . in order to determine whether an impairment has occurred , management must evaluate the events and incorporate multiple assumptions including : costs associated wi th continuing the development program , competing therapies or compounds , potential market size , estimated future cash flows and other factors . when testing indefinite-lived intangibles for impairment , we may assess qualitative factors for our indefinite-li ved intangibles to determine whether it is more likely than not ( that is , a likelihood of more than 50 percent ) that the asset is impaired . alternatively , we may bypass this qualitative assessment for some or all of our indefinite-lived intangibles and per form the quantitative impairment test that compares the fair value of the indefinite-lived intangible asset with the asset 's carrying amount . we test our ipr & d for impairment as of november 30. there was no impairment of the mind-nrg ipr & d asset for the ye ars ended december 31 , 2019 or 2018. impairment of min-117 in-process research and development asset . as a result of our phase 2b trial of min-117 in adult patients suffering from moderate to severe mdd not meeting its primary and key secondary endpoints and our decision not to further the clinical development of min-117 in mdd , we determined that the min-117 ipr & d is fully impaired and recognized a $ 19.0 million expense , which was included as a component of research and development expense , during the year ended december 31 , 2019. there was no impairment of the min-117 ipr & d for the year ended december 31 , 2018. goodwill we test our goodwill for impairment annually , or whenever events or changes in circumstances indicate an impairment may have occurred , by comparing our reporting unit 's carrying value to its fair value . impairment may result from , among other things , deterioration in the performance of the acquired business , adverse market conditions , adverse changes in applicable laws or regulations and a variety of other circumstances . if we determine that an impairment has occurred , we are required to record a write-down of the carrying value and charge the impairment as an operating expense in the period the determination is made . in evaluating the recoverability of the carrying value of goodwill , we must make assumptions regarding estimated future cash flows and other factors to determine the fair value of the acquired assets . changes in strategy or market conditions could significantly impact those judgments in the future and require an adjustment to the recorded balances . we test our goodwill for impairment as of november 30. there was no impairment of goodwill for the years ended december 31 , 2019 or 2018. income taxes deferred tax assets and liabilities are determined based on differences between financial reporting and tax reporting bases of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse . uncertain tax positions are evaluated and if appropriate , the amount of unrecognized tax benefits are recorded within deferred tax assets . deferred tax assets are evaluated for realization based on a more-likely-than-not criterion in determining if a valuation allowance should be provided . valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized . we use a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken , or expected to be taken , in a tax return . we have elected to treat interest and penalties , to the extent they arise , as a component of income taxes . there was no interest or penalties related to income taxes for the years ended december 31 , 2019 or 2018. income tax years beginning in 2012 for federal and state purposes are generally subject to examination by taxing authorities , although net operating losses from all prior years are subject to examinations and adjustments for at least three years following the year in which the tax attributes are utilized . recent accounting pronouncements from time to time ,

accounting principles , policies and guidelines , and changes in the assumptions used in making such forward-looking statements . in addition , the factors described under `` risk factors `` in item 1a of this annual report on form 10-k , may result in these differences . you should carefully review all of these factors , and you should be aware that there may be other factors that could cause these differences . these forward-looking statements were based on information , plans and estimates at the date of this annual report , and we assume no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors , new information , future events or other changes . although the company believes that the expectations reflected in such forward-looking statements are reasonable , actual results may differ materially from the results discussed in these forward-looking statements . readers are cautioned not to place undue reliance on these forward-looking statements , which speak only as of the date hereof . the company undertakes no obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events . readers are also urged to carefully review and consider the various disclosures made by the company , which attempt to advise interested parties of the factors that affect the company 's business . critical accounting policies management 's discussion and analysis of the company 's financial condition and results of operations is based on the consolidated financial statements which are prepared in accordance with accounting principles generally accepted in the united states of america . the preparation of such financial statements requires management to make estimates and assumptions that affect the reported amounts of assets , liabilities , revenues and expenses and related disclosure of contingent assets and liabilities . on an ongoing basis , management evaluates its estimates , including those related to the allowance for loan losses , goodwill , the valuation of mortgage servicing rights , and other-than-temporary impairment on securities . management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances , the results of which form the basis in making judgments about the carrying values of assets that are not readily apparent from the first bancorp - 2013 form 10-k - page 24 other sources . actual results could differ from the amounts derived from management 's estimates and assumptions under different assumptions or conditions . allowance for loan losses . management believes the allowance for loan losses requires the most significant estimates and assumptions used in the preparation of the consolidated financial statements . the allowance for loan losses is based on management 's evaluation of the level of the allowance required in relation to the estimated loss exposure in the loan portfolio . management believes the allowance for loan losses is a significant estimate and therefore regularly evaluates it to determine the appropriate level by taking into consideration factors such as prior loan loss experience , the character and size of the loan portfolio , business and economic conditions and management 's estimation of potential losses . the use of different estimates or assumptions could produce different provisions for loan losses . goodwill . management utilizes numerous techniques to estimate the value of various assets held by the company , including methods to determine the appropriate carrying value of goodwill as required under financial accounting standards board ( `` fasb `` ) accounting standards codification ( `` asc `` ) topic 350 `` intangibles – goodwill and other . `` goodwill from purchase acquisitions is subject to ongoing periodic evaluation for impairment . mortgage servicing rights . the valuation of mortgage servicing rights is a critical accounting policy which requires significant estimates and assumptions . the bank often sells mortgage loans it originates and retains the ongoing servicing of such loans , receiving a fee for these services , generally 0.25 % of the outstanding balance of the loan per annum . mortgage servicing rights are recognized at fair value when they are acquired through the sale of loans , and are reported in other assets . they are amortized into non-interest income in proportion to , and over the period of , the estimated future net servicing income of the underlying financial assets . the rights are subsequently carried at the lower of amortized cost or fair value . management uses an independent firm which specializes in the valuation of mortgage servicing rights to determine the fair value . the most important assumption is the anticipated loan prepayment rate , and increases in prepayment speed results in lower valuations of mortgage servicing rights . the valuation also includes an evaluation for impairment based upon the fair value of the rights , which can vary depending upon current interest rates and prepayment expectations , as compared to amortized cost . impairment is determined by stratifying rights by predominant characteristics , such as interest rates and terms . the use of different assumptions could produce a different valuation . all of the assumptions are based on standards the company believes would be utilized by market participants in valuing mortgage servicing rights and are consistently derived and or benchmarked against independent public sources . other-than-temporary impairment on securities . one of the significant estimates related to investment securities is the evaluation of other-than-temporary impairments . the evaluation of securities for other-than-temporary impairments is a quantitative and qualitative process , which is subject to risks and uncertainties and is intended to determine whether declines in the fair value of investments should be recognized in current period earnings . the risks and uncertainties include changes in general economic conditions , the issuer 's financial condition and or future prospects , the effects of changes in interest rates or credit spreads and the expected recovery period of unrealized losses . story_separator_special_tag the company 's efficiency ratio – a benchmark measure of the amount spent to generate a dollar of income – was 55.44 % in 2013 compared to 67.18 % for the bank 's peer group , on average . in 2012 , the company 's efficiency ratio was 51.01 % compared to 66.37 % for the bank 's peer group , on average . investment management and fiduciary activities as of december 31 , 2013 , first advisors , the bank 's private banking and investment management division , had assets under management with a market value of $ 700.8 million , consisting of 845 trust accounts , estate accounts , agency accounts , and self-directed individual retirement accounts . this compares to december 31 , 2012 , when 834 accounts with a market value of $ 651.3 million were under management . assets and asset quality total assets of $ 1.464 billion increased 3.5 % or $ 49.0 million in 2013 from $ 1.415 billion at december 31 , 2012 . the investment portfolio increased $ 39.6 million or 8.8 % over december 31 , 2012 , and the loan portfolio increased $ 7.1 million or 0.8 % . year-over-year , average assets were up $ 16.0 million in 2013 over 2012 . average loans in 2013 were $ 8.2 million lower than in 2012 , but average investments in 2013 were $ 14.0 million higher than in 2012 . credit quality improved significantly in 2013 . non-performing assets to total assets stood at 1.44 % at december 31 , 2013 , well below 1.89 % of total assets at december 31 , 2012 and 2.32 % of total assets at december 31 , 2011 . in management 's opinion , the company 's long-standing approach to working with borrowers and ethical loan underwriting standards helps alleviate some of the payment problems on customers ' loans and in the end minimizes actual loan losses . the first bancorp - 2013 form 10-k - page 31 net chargeoffs in 2013 were $ 5.2 million or 0.60 % of average loans outstanding . this compares to net chargeoffs in 2012 of $ 8.3 million or 0.95 % of average loans outstanding and net charge offs for our ubpr peer group in 2013 of 0.26 % of average assets . residential real estate term loans represent 43.0 % of the total loan portfolio , and this loan category generally has a lower level of losses in comparison to other loan types . in 2013 , the loss ratio for residential mortgages was 0.30 % compared to 0.60 % for the entire loan portfolio . the company does not have a credit card portfolio or offer dealer consumer loans which generally carry more risk and therefore higher losses . the allowance for loan losses ended the year at $ 11.5 million and stood at 1.31 % of total loans outstanding compared to $ 12.5 million and 1.44 % of total loans outstanding at december 31 , 2012 . a $ 4.2 million provision for losses was made in 2013 and net charge offs totaled $ 5.2 million , resulting in the allowance for loan losses decreasing $ 986,000 or 7.9 % from december 31 , 2012 . management believes the allowance for loan losses is appropriate as of december 31 , 2013. in management 's opinion , the level of the provision for loan losses in 2013 was directionally consistent with the improvement in overall credit quality of our loan portfolio and corresponding levels of nonperforming loans , as well as with the performance of the national and local economies , current levels of unemployment and the outlook for economic recovery continuing for some time to come . investment activities during 2013 , the investment portfolio increased 8.8 % to end the year at $ 489.0 million compared to $ 449.4 million at december 31 , 2012 . average investments in 2013 were $ 14.0 million higher than in 2012 . as of december 31 , 2013 , mortgage-backed securities had a carrying value of $ 213.4 million and a fair value of $ 213.5 million . of this total , securities with a fair value of $ 133.2 million or 62.4 % of the mortgage-backed portfolio were issued by the government national mortgage association and securities with a fair value of $ 80.3 million or 37.6 % of the mortgage-backed portfolio were issued by the federal home loan mortgage corporation and the federal national mortgage association . the company 's investment securities are classified into two categories : securities available for sale and securities to be held to maturity . securities available for sale consist primarily of debt securities which management intends to hold for indefinite periods of time . they may be used as part of the company 's funds management strategy , and may be sold in response to changes in interest rates , prepayment risk and liquidity needs , to increase capital ratios , or for other similar reasons . securities to be held to maturity consist primarily of debt securities that the company has acquired solely for long-term investment purposes , rather than for trading or future sale . for securities to be categorized as held to maturity , management must have the intent and the company must have the ability to hold such investments until their respective maturity dates . the company does not hold trading account securities . all investment securities are managed in accordance with a written investment policy adopted by the board of directors . it is the company 's general policy that investments for either portfolio be limited to government debt obligations , time deposits , and corporate bonds or commercial paper with one of the three highest ratings given by a nationally recognized rating agency . the portfolio is currently invested primarily in u.s. government sponsored agency securities and tax-exempt obligations of states and political subdivisions . the individual securities have been

capital resources shareholders ' equity as of december 31 , 2013 was $ 146.1 million , compared to $ 156.3 million as of december 31 , 2012 . the decline in 2013 was attributable to the unrealized loss on securities available for sale as a result of changes in the u.s. treasury yield curve . capital at december 31 , 2013 was sufficient to meet the requirements of regulatory authorities . leverage capital of the company , or total shareholders ' equity divided by average total assets for the current quarter less goodwill and any net unrealized gain or loss on securities available for sale and postretirement benefits , stood at 8.67 % on december 31 , 2013 and 8.46 % at december 31 , 2012 . to be rated `` well-capitalized '' , regulatory requirements call for a minimum leverage capital ratio the first bancorp - 2013 form 10-k - page 49 of 5.00 % . at december 31 , 2013 , the company had tier-one risk-based capital of 14.78 % and tier-two risk-based capital of 16.03 % , versus 14.80 % and 16.05 % , respectively , at december 31 , 2012 . to be rated `` well-capitalized '' , regulatory requirements call for minimum tier-one and tier-two risk-based capital ratios of 6.00 % and 10.00 % , respectively . the company 's actual levels of capitalization were comfortably above the standards to be rated `` well-capitalized '' by regulatory authorities . during 2013 , the company declared cash dividends of $ 0.195 per share in the first three quarters and $ 0.20 in the fourth quarter or $ 0.785 per share for the 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. ```capital resources shareholders ' equity as of december 31 , 2013 was $ 146.1 million , compared to $ 156.3 million as of december 31 , 2012 . the decline in 2013 was attributable to the unrealized loss on securities available for sale as a result of changes in the u.s. treasury yield curve . capital at december 31 , 2013 was sufficient to meet the requirements of regulatory authorities . leverage capital of the company , or total shareholders ' equity divided by average total assets for the current quarter less goodwill and any net unrealized gain or loss on securities available for sale and postretirement benefits , stood at 8.67 % on december 31 , 2013 and 8.46 % at december 31 , 2012 . to be rated `` well-capitalized '' , regulatory requirements call for a minimum leverage capital ratio the first bancorp - 2013 form 10-k - page 49 of 5.00 % . at december 31 , 2013 , the company had tier-one risk-based capital of 14.78 % and tier-two risk-based capital of 16.03 % , versus 14.80 % and 16.05 % , respectively , at december 31 , 2012 . to be rated `` well-capitalized '' , regulatory requirements call for minimum tier-one and tier-two risk-based capital ratios of 6.00 % and 10.00 % , respectively . the company 's actual levels of capitalization were comfortably above the standards to be rated `` well-capitalized '' by regulatory authorities . during 2013 , the company declared cash dividends of $ 0.195 per share in the first three quarters and $ 0.20 in the fourth quarter or $ 0.785 per share for the year . ``` Suspicious Activity Report : accounting principles , policies and guidelines , and changes in the assumptions used in making such forward-looking statements . in addition , the factors described under `` risk factors `` in item 1a of this annual report on form 10-k , may result in these differences . you should carefully review all of these factors , and you should be aware that there may be other factors that could cause these differences . these forward-looking statements were based on information , plans and estimates at the date of this annual report , and we assume no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors , new information , future events or other changes . although the company believes that the expectations reflected in such forward-looking statements are reasonable , actual results may differ materially from the results discussed in these forward-looking statements . readers are cautioned not to place undue reliance on these forward-looking statements , which speak only as of the date hereof . the company undertakes no obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events . readers are also urged to carefully review and consider the various disclosures made by the company , which attempt to advise interested parties of the factors that affect the company 's business . critical accounting policies management 's discussion and analysis of the company 's financial condition and results of operations is based on the consolidated financial statements which are prepared in accordance with accounting principles generally accepted in the united states of america . the preparation of such financial statements requires management to make estimates and assumptions that affect the reported amounts of assets , liabilities , revenues and expenses and related disclosure of contingent assets and liabilities . on an ongoing basis , management evaluates its estimates , including those related to the allowance for loan losses , goodwill , the valuation of mortgage servicing rights , and other-than-temporary impairment on securities . management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances , the results of which form the basis in making judgments about the carrying values of assets that are not readily apparent from the first bancorp - 2013 form 10-k - page 24 other sources . actual results could differ from the amounts derived from management 's estimates and assumptions under different assumptions or conditions . allowance for loan losses . management believes the allowance for loan losses requires the most significant estimates and assumptions used in the preparation of the consolidated financial statements . the allowance for loan losses is based on management 's evaluation of the level of the allowance required in relation to the estimated loss exposure in the loan portfolio . management believes the allowance for loan losses is a significant estimate and therefore regularly evaluates it to determine the appropriate level by taking into consideration factors such as prior loan loss experience , the character and size of the loan portfolio , business and economic conditions and management 's estimation of potential losses . the use of different estimates or assumptions could produce different provisions for loan losses . goodwill . management utilizes numerous techniques to estimate the value of various assets held by the company , including methods to determine the appropriate carrying value of goodwill as required under financial accounting standards board ( `` fasb `` ) accounting standards codification ( `` asc `` ) topic 350 `` intangibles – goodwill and other . `` goodwill from purchase acquisitions is subject to ongoing periodic evaluation for impairment . mortgage servicing rights . the valuation of mortgage servicing rights is a critical accounting policy which requires significant estimates and assumptions . the bank often sells mortgage loans it originates and retains the ongoing servicing of such loans , receiving a fee for these services , generally 0.25 % of the outstanding balance of the loan per annum . mortgage servicing rights are recognized at fair value when they are acquired through the sale of loans , and are reported in other assets . they are amortized into non-interest income in proportion to , and over the period of , the estimated future net servicing income of the underlying financial assets . the rights are subsequently carried at the lower of amortized cost or fair value . management uses an independent firm which specializes in the valuation of mortgage servicing rights to determine the fair value . the most important assumption is the anticipated loan prepayment rate , and increases in prepayment speed results in lower valuations of mortgage servicing rights . the valuation also includes an evaluation for impairment based upon the fair value of the rights , which can vary depending upon current interest rates and prepayment expectations , as compared to amortized cost . impairment is determined by stratifying rights by predominant characteristics , such as interest rates and terms . the use of different assumptions could produce a different valuation . all of the assumptions are based on standards the company believes would be utilized by market participants in valuing mortgage servicing rights and are consistently derived and or benchmarked against independent public sources . other-than-temporary impairment on securities . one of the significant estimates related to investment securities is the evaluation of other-than-temporary impairments . the evaluation of securities for other-than-temporary impairments is a quantitative and qualitative process , which is subject to risks and uncertainties and is intended to determine whether declines in the fair value of investments should be recognized in current period earnings . the risks and uncertainties include changes in general economic conditions , the issuer 's financial condition and or future prospects , the effects of changes in interest rates or credit spreads and the expected recovery period of unrealized losses . story_separator_special_tag the company 's efficiency ratio – a benchmark measure of the amount spent to generate a dollar of income – was 55.44 % in 2013 compared to 67.18 % for the bank 's peer group , on average . in 2012 , the company 's efficiency ratio was 51.01 % compared to 66.37 % for the bank 's peer group , on average . investment management and fiduciary activities as of december 31 , 2013 , first advisors , the bank 's private banking and investment management division , had assets under management with a market value of $ 700.8 million , consisting of 845 trust accounts , estate accounts , agency accounts , and self-directed individual retirement accounts . this compares to december 31 , 2012 , when 834 accounts with a market value of $ 651.3 million were under management . assets and asset quality total assets of $ 1.464 billion increased 3.5 % or $ 49.0 million in 2013 from $ 1.415 billion at december 31 , 2012 . the investment portfolio increased $ 39.6 million or 8.8 % over december 31 , 2012 , and the loan portfolio increased $ 7.1 million or 0.8 % . year-over-year , average assets were up $ 16.0 million in 2013 over 2012 . average loans in 2013 were $ 8.2 million lower than in 2012 , but average investments in 2013 were $ 14.0 million higher than in 2012 . credit quality improved significantly in 2013 . non-performing assets to total assets stood at 1.44 % at december 31 , 2013 , well below 1.89 % of total assets at december 31 , 2012 and 2.32 % of total assets at december 31 , 2011 . in management 's opinion , the company 's long-standing approach to working with borrowers and ethical loan underwriting standards helps alleviate some of the payment problems on customers ' loans and in the end minimizes actual loan losses . the first bancorp - 2013 form 10-k - page 31 net chargeoffs in 2013 were $ 5.2 million or 0.60 % of average loans outstanding . this compares to net chargeoffs in 2012 of $ 8.3 million or 0.95 % of average loans outstanding and net charge offs for our ubpr peer group in 2013 of 0.26 % of average assets . residential real estate term loans represent 43.0 % of the total loan portfolio , and this loan category generally has a lower level of losses in comparison to other loan types . in 2013 , the loss ratio for residential mortgages was 0.30 % compared to 0.60 % for the entire loan portfolio . the company does not have a credit card portfolio or offer dealer consumer loans which generally carry more risk and therefore higher losses . the allowance for loan losses ended the year at $ 11.5 million and stood at 1.31 % of total loans outstanding compared to $ 12.5 million and 1.44 % of total loans outstanding at december 31 , 2012 . a $ 4.2 million provision for losses was made in 2013 and net charge offs totaled $ 5.2 million , resulting in the allowance for loan losses decreasing $ 986,000 or 7.9 % from december 31 , 2012 . management believes the allowance for loan losses is appropriate as of december 31 , 2013. in management 's opinion , the level of the provision for loan losses in 2013 was directionally consistent with the improvement in overall credit quality of our loan portfolio and corresponding levels of nonperforming loans , as well as with the performance of the national and local economies , current levels of unemployment and the outlook for economic recovery continuing for some time to come . investment activities during 2013 , the investment portfolio increased 8.8 % to end the year at $ 489.0 million compared to $ 449.4 million at december 31 , 2012 . average investments in 2013 were $ 14.0 million higher than in 2012 . as of december 31 , 2013 , mortgage-backed securities had a carrying value of $ 213.4 million and a fair value of $ 213.5 million . of this total , securities with a fair value of $ 133.2 million or 62.4 % of the mortgage-backed portfolio were issued by the government national mortgage association and securities with a fair value of $ 80.3 million or 37.6 % of the mortgage-backed portfolio were issued by the federal home loan mortgage corporation and the federal national mortgage association . the company 's investment securities are classified into two categories : securities available for sale and securities to be held to maturity . securities available for sale consist primarily of debt securities which management intends to hold for indefinite periods of time . they may be used as part of the company 's funds management strategy , and may be sold in response to changes in interest rates , prepayment risk and liquidity needs , to increase capital ratios , or for other similar reasons . securities to be held to maturity consist primarily of debt securities that the company has acquired solely for long-term investment purposes , rather than for trading or future sale . for securities to be categorized as held to maturity , management must have the intent and the company must have the ability to hold such investments until their respective maturity dates . the company does not hold trading account securities . all investment securities are managed in accordance with a written investment policy adopted by the board of directors . it is the company 's general policy that investments for either portfolio be limited to government debt obligations , time deposits , and corporate bonds or commercial paper with one of the three highest ratings given by a nationally recognized rating agency . the portfolio is currently invested primarily in u.s. government sponsored agency securities and tax-exempt obligations of states and political subdivisions . the individual securities have been

the current ratio was 2.7 to 1 at june 30 , 2019 and 2.4 to 1 at june 30 , 2018 . applied monitors several economic indices that have been key indicators for industrial economic activity in the united states . these include the industrial production ( ip ) and manufacturing capacity utilization ( mcu ) indices published by the federal reserve board and the purchasing managers index ( pmi ) published by the institute for supply management ( ism ) . historically , our performance correlates well with the mcu , which measures productivity and calculates a ratio of actual manufacturing output versus potential full capacity output . when manufacturing plants are running at a high rate of capacity , they tend to wear out machinery and require replacement parts . 15 the mcu ( total industry ) and ip indices have gradually decreased during the second half of fiscal 2019 correlating with an overall decline in the industrial economy in the same period . the ism pmi registered 51.7 in june 2019 , a decrease from the june 2018 revised reading of 60.0. a reading above 50 generally indicates expansion . the index readings for the months during the current quarter , along with the revised indices for previous quarter ends , were as follows : replace_table_token_1_th results of operations this discussion and analysis deals with comparisons of material changes in the consolidated financial statements for the years ended june 30 , 2019 and 2018 . for the comparison of the years ended june 30 , 2018 and 2017 , see the management 's discussion and analysis of financial condition and results of operations in part ii , item 7 of our 2018 annual report on form 10-k. the following table is included to aid in review of applied 's statements of consolidated income . replace_table_token_2_th sales in fiscal 2019 were $ 3.5 billion , which was $ 399.5 million or 13.0 % above the prior year , with sales from acquisitions accounting for $ 360.0 million or 11.7 % of the increase , and unfavorable foreign currency translation accounting for a decrease of $ 19.2 million or 0.6 % . there were 251.5 selling days in both fiscal 2019 and fiscal 2018 . excluding the impact of businesses acquired and the impact of foreign currency translation , sales were up $ 58.7 million or 1.9 % during the year , which is driven by growth of 3.5 % from the service center based distribution segment , offset by a 1.6 % decline from the fluid power & flow control segment . the following table shows changes in sales by reportable segment . replace_table_token_3_th sales of our service center based distribution segment , which operates primarily in mro markets , increased $ 106.5 million , or 4.5 % . acquisitions within this segment increased sales by $ 17.6 million or 0.7 % , and unfavorable foreign currency translation decreased sales by $ 19.2 million or 0.8 % . excluding the impact of businesses acquired and the impact of foreign currency translation , sales increased $ 108.1 million or 4.6 % due to overall growth in the industrial economy . 16 sales of our fluid power & flow control segment increased $ 293.0 million or 40.3 % . acquisitions within this segment , primarily fcx , increased sales $ 342.4 million or 47.1 % . excluding the impact of businesses acquired , sales decreased $ 49.4 million or 6.8 % . the decrease from operations is primarily due to softness and project delays in our fluid power businesses tied to technology markets , specifically electronic equipment and component manufacturers , as well as slower demand in our flow control operations . the following table shows changes in sales by geographical area . other countries includes mexico , australia , new zealand , and singapore . replace_table_token_4_th sales in our u.s. operations increased $ 401.7 million or 15.4 % , with acquisitions adding $ 360.0 million or 13.8 % . excluding the impact of businesses acquired , u.s. sales were up $ 41.7 million or 1.6 % . sales from our canadian operations decreased $ 2.3 million or 0.8 % , and unfavorable foreign currency translation decreased canadian sales by $ 11.5 million or 4.2 % . excluding the impact of foreign currency translation , canadian sales were up $ 9.2 million or 3.4 % , of which 4.2 % is growth from operations , offset by a 0.8 % decrease due to two less sales days . consolidated sales from our other country operations increased $ 0.1 million compared to the prior year . unfavorable foreign currency translation decreased other country sales by $ 7.7 million or 4.2 % . excluding the impact of foreign currency translation , other country sales were up $ 7.8 million or 4.2 % compared to the prior year . our gross profit margin increased to 29.0 % in fiscal 2019 compared to 28.8 % in fiscal 2018 primarily due to the impact of acquisitions , which favorably impacted the gross profit margin by 48 basis points in fiscal 2019 , offset by an unfavorable impact of 26 basis points from the change in lifo expense in fiscal 2019 compared to fiscal 2018 . the following table shows the changes in selling , distribution , and administrative expense ( sd & a ) . replace_table_token_5_th sd & a consists of associate compensation , benefits and other expenses associated with selling , purchasing , warehousing , supply chain management , and marketing and distribution of the company 's products , as well as costs associated with a variety of administrative functions such as human resources , information technology , treasury , accounting , insurance , legal , facility related expenses and expenses incurred in acquiring businesses . story_separator_special_tag goodwill for acquired businesses is accounted for using the acquisition method of accounting which requires that the assets acquired and liabilities assumed be recorded at the date of the acquisition at their respective estimated fair values . the determination of the value of the intangible assets acquired involves certain judgments and estimates . these judgments can include , but are not limited to , the cash flows that an asset is expected to generate in the future and the appropriate weighted average cost of capital . the judgments made in determining the estimated fair value assigned to each class of assets acquired , as well as the estimated life of each asset , can materially impact the net income of the periods subsequent to the acquisition through depreciation and amortization , and in certain instances through impairment charges , if the asset becomes impaired in the future . as part of acquisition accounting , we recognize acquired identifiable intangible assets such as customer relationships , vendor relationships , trade names , and non-competition agreements apart from goodwill . finite-lived identifiable intangibles are evaluated for impairment when changes in conditions indicate carrying value may not be recoverable . we evaluate goodwill for impairment at the reporting unit level annually as of january 1 , and whenever an event occurs or circumstances change that would indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount . events or circumstances that may result in an impairment review include changes in macroeconomic conditions , industry and market considerations , cost factors , overall financial performance , other relevant entity-specific events , specific events affecting the reporting unit or sustained decrease in share price . each year , the company may elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value . if impairment is indicated in the qualitative assessment , or , if management elects to initially perform a quantitative assessment of goodwill , the impairment test uses a one-step approach . the fair value of a reporting unit is compared with its carrying amount , 22 including goodwill . if the fair value of the reporting unit exceeds its carrying amount , goodwill of the reporting unit is not impaired . if the carrying amount of a reporting unit exceeds its fair value , an impairment charge would be recognized for the amount by which the carrying amount exceeds the reporting unit 's fair value , not to exceed the total amount of goodwill allocated to that reporting unit . goodwill on our consolidated financial statements relates to both the service center based distribution segment and the fluid power & flow control segment . the company has seven reporting units for which an annual goodwill impairment assessment was performed as of january 1 , 2019. the company concluded that all of the reporting units ' fair value exceeded their carrying amounts by at least 20 % as of january 1 , 2019. as of june 30 , 2019 , the company 's goodwill balance was $ 662.0 million , of which $ 28.3 million relates to the canada reporting unit . as of january 1 , 2019 , the fair value of the canada reporting unit exceeded the carrying value by 25.0 % . if the company does not achieve the forecasted sales growth and margin improvements goodwill could be impaired . the fair values of the reporting units in accordance with the goodwill impairment test were determined using the income and market approaches . the income approach employs the discounted cash flow method reflecting projected cash flows expected to be generated by market participants and then adjusted for time value of money factors , and requires management to make significant estimates and assumptions related to forecasts of future revenues , operating margins , and discount rates . the market approach utilizes an analysis of comparable publicly traded companies and requires management to make significant estimates and assumptions related to the forecasts of future revenues , earnings before interest , taxes , depreciation , and amortization ( ebitda ) and multiples that are applied to management 's forecasted revenues and ebitda estimates . changes in future results , assumptions , and estimates after the measurement date may lead to an outcome where additional impairment charges would be required in future periods . specifically , actual results may vary from the company 's forecasts and such variations may be material and unfavorable , thereby triggering the need for future impairment tests where the conclusions may differ in reflection of prevailing market conditions . further , continued adverse market conditions could result in the recognition of additional impairment if the company determines that the fair values of its reporting units have fallen below their carrying values . income taxes deferred income taxes are recorded for estimated future tax effects of differences between the bases of assets and liabilities for financial reporting and income tax purposes , giving consideration to enacted tax laws . as of june 30 , 2019 , the company had recognized $ 54.5 million of net deferred tax liabilities . valuation allowances are provided against deferred tax assets where it is considered more-likely-than-not that the company will not realize the benefit of such assets on a jurisdiction by jurisdiction basis . the remaining net deferred tax asset is the amount management believes is more-likely-than-not of being realized . the realization of these deferred tax assets can be impacted by changes to tax laws , statutory rates and future taxable income levels . 23 cautionary statement under private securities litigation reform act this form 10-k , including management 's discussion and analysis , contains statements that are forward-looking based on management 's current expectations about the future . forward-looking statements are often identified by qualifiers , such as “ guidance ” ,

liquidity and capital resources our primary source of capital is cash flow from operations , supplemented as necessary by bank borrowings or other sources of debt . at june 30 , 2019 we had total debt obligations outstanding of $ 959.8 million compared to $ 966.1 million at june 30 , 2018 . management expects that our existing cash , cash equivalents , funds available under the revolving credit facility , and cash provided from operations , will be sufficient to finance normal working capital needs in each of the countries we operate in , payment of dividends , acquisitions , investments in properties , facilities and equipment , debt service , and the purchase of additional company common stock . management also believes that additional long-term debt and line of credit financing could be obtained based on the company 's credit standing and financial strength . the company 's working capital at june 30 , 2019 was $ 724.3 million compared to $ 625.5 million at june 30 , 2018 . the current ratio was 2.7 to 1 at june 30 , 2019 and 2.4 to 1 at june 30 , 2018 . the increase is primarily driven by a higher cash balance at june 30 , 2019 . 18 net cash flows the following table is included to aid in review of applied 's statements of consolidated cash flows ; all amounts are in thousands . replace_table_token_6_th the increase in cash provided by operating activities during fiscal 2019 is primarily due to the impact of acquisitions along with improved operating results , offset by changes in working capital . net cash used in investing activities in fiscal 2019 included $ 37.5 million used for the acquisitions of fps , milroc and woodward , and $ 19.0 million used for capital expenditures .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources our primary source of capital is cash flow from operations , supplemented as necessary by bank borrowings or other sources of debt . at june 30 , 2019 we had total debt obligations outstanding of $ 959.8 million compared to $ 966.1 million at june 30 , 2018 . management expects that our existing cash , cash equivalents , funds available under the revolving credit facility , and cash provided from operations , will be sufficient to finance normal working capital needs in each of the countries we operate in , payment of dividends , acquisitions , investments in properties , facilities and equipment , debt service , and the purchase of additional company common stock . management also believes that additional long-term debt and line of credit financing could be obtained based on the company 's credit standing and financial strength . the company 's working capital at june 30 , 2019 was $ 724.3 million compared to $ 625.5 million at june 30 , 2018 . the current ratio was 2.7 to 1 at june 30 , 2019 and 2.4 to 1 at june 30 , 2018 . the increase is primarily driven by a higher cash balance at june 30 , 2019 . 18 net cash flows the following table is included to aid in review of applied 's statements of consolidated cash flows ; all amounts are in thousands . replace_table_token_6_th the increase in cash provided by operating activities during fiscal 2019 is primarily due to the impact of acquisitions along with improved operating results , offset by changes in working capital . net cash used in investing activities in fiscal 2019 included $ 37.5 million used for the acquisitions of fps , milroc and woodward , and $ 19.0 million used for capital expenditures . ``` Suspicious Activity Report : the current ratio was 2.7 to 1 at june 30 , 2019 and 2.4 to 1 at june 30 , 2018 . applied monitors several economic indices that have been key indicators for industrial economic activity in the united states . these include the industrial production ( ip ) and manufacturing capacity utilization ( mcu ) indices published by the federal reserve board and the purchasing managers index ( pmi ) published by the institute for supply management ( ism ) . historically , our performance correlates well with the mcu , which measures productivity and calculates a ratio of actual manufacturing output versus potential full capacity output . when manufacturing plants are running at a high rate of capacity , they tend to wear out machinery and require replacement parts . 15 the mcu ( total industry ) and ip indices have gradually decreased during the second half of fiscal 2019 correlating with an overall decline in the industrial economy in the same period . the ism pmi registered 51.7 in june 2019 , a decrease from the june 2018 revised reading of 60.0. a reading above 50 generally indicates expansion . the index readings for the months during the current quarter , along with the revised indices for previous quarter ends , were as follows : replace_table_token_1_th results of operations this discussion and analysis deals with comparisons of material changes in the consolidated financial statements for the years ended june 30 , 2019 and 2018 . for the comparison of the years ended june 30 , 2018 and 2017 , see the management 's discussion and analysis of financial condition and results of operations in part ii , item 7 of our 2018 annual report on form 10-k. the following table is included to aid in review of applied 's statements of consolidated income . replace_table_token_2_th sales in fiscal 2019 were $ 3.5 billion , which was $ 399.5 million or 13.0 % above the prior year , with sales from acquisitions accounting for $ 360.0 million or 11.7 % of the increase , and unfavorable foreign currency translation accounting for a decrease of $ 19.2 million or 0.6 % . there were 251.5 selling days in both fiscal 2019 and fiscal 2018 . excluding the impact of businesses acquired and the impact of foreign currency translation , sales were up $ 58.7 million or 1.9 % during the year , which is driven by growth of 3.5 % from the service center based distribution segment , offset by a 1.6 % decline from the fluid power & flow control segment . the following table shows changes in sales by reportable segment . replace_table_token_3_th sales of our service center based distribution segment , which operates primarily in mro markets , increased $ 106.5 million , or 4.5 % . acquisitions within this segment increased sales by $ 17.6 million or 0.7 % , and unfavorable foreign currency translation decreased sales by $ 19.2 million or 0.8 % . excluding the impact of businesses acquired and the impact of foreign currency translation , sales increased $ 108.1 million or 4.6 % due to overall growth in the industrial economy . 16 sales of our fluid power & flow control segment increased $ 293.0 million or 40.3 % . acquisitions within this segment , primarily fcx , increased sales $ 342.4 million or 47.1 % . excluding the impact of businesses acquired , sales decreased $ 49.4 million or 6.8 % . the decrease from operations is primarily due to softness and project delays in our fluid power businesses tied to technology markets , specifically electronic equipment and component manufacturers , as well as slower demand in our flow control operations . the following table shows changes in sales by geographical area . other countries includes mexico , australia , new zealand , and singapore . replace_table_token_4_th sales in our u.s. operations increased $ 401.7 million or 15.4 % , with acquisitions adding $ 360.0 million or 13.8 % . excluding the impact of businesses acquired , u.s. sales were up $ 41.7 million or 1.6 % . sales from our canadian operations decreased $ 2.3 million or 0.8 % , and unfavorable foreign currency translation decreased canadian sales by $ 11.5 million or 4.2 % . excluding the impact of foreign currency translation , canadian sales were up $ 9.2 million or 3.4 % , of which 4.2 % is growth from operations , offset by a 0.8 % decrease due to two less sales days . consolidated sales from our other country operations increased $ 0.1 million compared to the prior year . unfavorable foreign currency translation decreased other country sales by $ 7.7 million or 4.2 % . excluding the impact of foreign currency translation , other country sales were up $ 7.8 million or 4.2 % compared to the prior year . our gross profit margin increased to 29.0 % in fiscal 2019 compared to 28.8 % in fiscal 2018 primarily due to the impact of acquisitions , which favorably impacted the gross profit margin by 48 basis points in fiscal 2019 , offset by an unfavorable impact of 26 basis points from the change in lifo expense in fiscal 2019 compared to fiscal 2018 . the following table shows the changes in selling , distribution , and administrative expense ( sd & a ) . replace_table_token_5_th sd & a consists of associate compensation , benefits and other expenses associated with selling , purchasing , warehousing , supply chain management , and marketing and distribution of the company 's products , as well as costs associated with a variety of administrative functions such as human resources , information technology , treasury , accounting , insurance , legal , facility related expenses and expenses incurred in acquiring businesses . story_separator_special_tag goodwill for acquired businesses is accounted for using the acquisition method of accounting which requires that the assets acquired and liabilities assumed be recorded at the date of the acquisition at their respective estimated fair values . the determination of the value of the intangible assets acquired involves certain judgments and estimates . these judgments can include , but are not limited to , the cash flows that an asset is expected to generate in the future and the appropriate weighted average cost of capital . the judgments made in determining the estimated fair value assigned to each class of assets acquired , as well as the estimated life of each asset , can materially impact the net income of the periods subsequent to the acquisition through depreciation and amortization , and in certain instances through impairment charges , if the asset becomes impaired in the future . as part of acquisition accounting , we recognize acquired identifiable intangible assets such as customer relationships , vendor relationships , trade names , and non-competition agreements apart from goodwill . finite-lived identifiable intangibles are evaluated for impairment when changes in conditions indicate carrying value may not be recoverable . we evaluate goodwill for impairment at the reporting unit level annually as of january 1 , and whenever an event occurs or circumstances change that would indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount . events or circumstances that may result in an impairment review include changes in macroeconomic conditions , industry and market considerations , cost factors , overall financial performance , other relevant entity-specific events , specific events affecting the reporting unit or sustained decrease in share price . each year , the company may elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value . if impairment is indicated in the qualitative assessment , or , if management elects to initially perform a quantitative assessment of goodwill , the impairment test uses a one-step approach . the fair value of a reporting unit is compared with its carrying amount , 22 including goodwill . if the fair value of the reporting unit exceeds its carrying amount , goodwill of the reporting unit is not impaired . if the carrying amount of a reporting unit exceeds its fair value , an impairment charge would be recognized for the amount by which the carrying amount exceeds the reporting unit 's fair value , not to exceed the total amount of goodwill allocated to that reporting unit . goodwill on our consolidated financial statements relates to both the service center based distribution segment and the fluid power & flow control segment . the company has seven reporting units for which an annual goodwill impairment assessment was performed as of january 1 , 2019. the company concluded that all of the reporting units ' fair value exceeded their carrying amounts by at least 20 % as of january 1 , 2019. as of june 30 , 2019 , the company 's goodwill balance was $ 662.0 million , of which $ 28.3 million relates to the canada reporting unit . as of january 1 , 2019 , the fair value of the canada reporting unit exceeded the carrying value by 25.0 % . if the company does not achieve the forecasted sales growth and margin improvements goodwill could be impaired . the fair values of the reporting units in accordance with the goodwill impairment test were determined using the income and market approaches . the income approach employs the discounted cash flow method reflecting projected cash flows expected to be generated by market participants and then adjusted for time value of money factors , and requires management to make significant estimates and assumptions related to forecasts of future revenues , operating margins , and discount rates . the market approach utilizes an analysis of comparable publicly traded companies and requires management to make significant estimates and assumptions related to the forecasts of future revenues , earnings before interest , taxes , depreciation , and amortization ( ebitda ) and multiples that are applied to management 's forecasted revenues and ebitda estimates . changes in future results , assumptions , and estimates after the measurement date may lead to an outcome where additional impairment charges would be required in future periods . specifically , actual results may vary from the company 's forecasts and such variations may be material and unfavorable , thereby triggering the need for future impairment tests where the conclusions may differ in reflection of prevailing market conditions . further , continued adverse market conditions could result in the recognition of additional impairment if the company determines that the fair values of its reporting units have fallen below their carrying values . income taxes deferred income taxes are recorded for estimated future tax effects of differences between the bases of assets and liabilities for financial reporting and income tax purposes , giving consideration to enacted tax laws . as of june 30 , 2019 , the company had recognized $ 54.5 million of net deferred tax liabilities . valuation allowances are provided against deferred tax assets where it is considered more-likely-than-not that the company will not realize the benefit of such assets on a jurisdiction by jurisdiction basis . the remaining net deferred tax asset is the amount management believes is more-likely-than-not of being realized . the realization of these deferred tax assets can be impacted by changes to tax laws , statutory rates and future taxable income levels . 23 cautionary statement under private securities litigation reform act this form 10-k , including management 's discussion and analysis , contains statements that are forward-looking based on management 's current expectations about the future . forward-looking statements are often identified by qualifiers , such as “ guidance ” ,

the following table provides quarterly information on weighted average effective yields by type of mbs investment as well as other information : 31 replace_table_token_8_th ( 1 ) represents a non-gaap financial measure . please refer to the discussion regarding the use of non-gaap financial measures and to the corresponding reconciliations of gaap to non-gaap financial measures provided in item 6 of this annual report on form 10-k. trends and recent market impacts there are certain conditions and prospective trends in the marketplace that have impacted our financial condition and results of operations and which may continue to impact us in the future . conditions and trends that had significant developments during 2014 and that may impact us in 2015 are discussed below . federal reserve monetary policy the fomc has held the targeted federal funds rate in a range of 0.00 % - 0.25 % since the end of 2008. the fomc has indicated that it will assess progress towards its objectives of maximum employment and 2 % inflation in determining how long to maintain the current target range . the fomc has also indicated that it believes that it can be patient in beginning to normalize the stance of monetary policy , although the pace of normalization will depend on the speed of progress toward its objectives . recent fomc releases seem to indicate that the fomc may begin monetary policy normalization in mid-2015 . given the uneven economic performance in the u.s. , the lack of consistent global economic growth , and current and developing geopolitical risks , it is possible that the fomc delays policy normalization or perhaps only modestly increases the targeted rate by 0.25 % or 0.50 % while it evaluates the impact of tighter credit on the u.s. economy . the fomc also continues to reinvest principal payments received on fixed-rate agency mbs purchased under its now-ended asset purchase programs , collectively known as `` qe3 `` . at its peak in 2014 , the fomc was purchasing $ 85 billion per month in securities . during the fourth quarter of this year , agency mbs net supply turned positive for the first time in several quarters , a trend which is likely to continue . this trend of positive net supply could negatively impact prices of fixed-rate agency mbs and may , by extension , impact prices of certain agency hybrid arms as well . asset credit spreads asset credit spreads are defined as the difference between the yields on securities with credit , prepayment or other risks and yields on benchmark securities without these risks ( typically treasuries or swaps ) , and that reflects the relative riskiness of owning the securities versus the benchmark . changes in asset credit spreads result from changes in the perceived riskiness of an investment versus its benchmark . asset credit spreads tightened dramatically in 2014 due in part to federal reserve policy , supply and demand imbalances leading to increased competition for assets , and global market liquidity from central bank activities . asset credit spreads widened modestly in the fourth quarter of 2014 as interest rates rallied and markets generally reduced risk . during the fourth quarter of 2014 , we continued to sell assets at most risk to spread widening . we continue to believe that global events 32 will lead to periods of spread volatility in 2015. in general , central bank policy and excess global liquidity have contributed to very low interest rates and a lower volatility environment , and investors in fixed income securities have bid asset prices up as a result as they pursue asset yields . the tight credit spread environment is one of the primary reasons that the company sold certain cmbs and cmbs io assets during the second half of 2014. regulatory uncertainty and reform since the financial crisis erupted in 2007 , regulators of financial institutions such as the federal reserve , the federal deposit insurance corporation , and the office of the comptroller of the currency have adopted regulatory requirements designed to enhance and maintain financial stability . financial institutions , particularly larger ones , are now generally subject to higher capital requirements and have reduced their reliance on lower cost , short-term funding sources . broker-dealer subsidiaries of financial institutions are our primary counterparties for repurchase agreement borrowings . in addition , certain regulations for money market funds have been instituted to address the risk of potential investor runs . money market funds are an important source of liquidity for the repurchase agreement market . these new financial regulations will be effective beginning in 2015 and through 2018 , although many institutions have begun initiatives to comply at a more rapid pace . we have been considering the potential impact of these new regulations on our counterparties and have been managing our financings in an effort to minimize the potential for our borrowing costs to increase . because we expect the new regulations may lead toward increasing our borrowing costs on repurchase agreements , we are evaluating alternative sources of funding including sources other than broker-dealer subsidiaries of large financial institutions . gse reform policy makers in washington dc continue to debate the future of fannie mae and freddie mac 's participation in the u.s. mortgage market . several bills have been introduced in the u.s. senate and the u.s. house of representatives regarding the reform and or dissolution of the gses . gse reform has been a very slow process given the continued softness in the housing market and the subdued pace of overall economic growth . the federal housing finance agency ( `` fhfa `` ) has offered details on a single mbs security platform that would combine elements of fannie mae 's and freddie mac 's current mbs features , which has a goal of eliminating pricing discrepancies in the two entities ' securities and to increase liquidity to benefit the housing market . story_separator_special_tag we use both pay-fixed and receive-fixed interest rate swaps to manage our overall hedge position . as of december 31 , 2014 , the weighted average notional amount of interest rate derivatives that will be effective for future periods are shown in the following table : 39 replace_table_token_20_th ( 1 ) weighted average rate is based on the weighted average notional outstanding . please refer to note 6 of the notes to the consolidated financial statements contained with this annual report on form 10-k as well as `` loss on derivative instruments , net `` within `` results of operations `` contained within this item 7 for additional information related to our derivative assets and liabilities . repurchase agreements our repurchase agreement borrowings have decreased $ 567.6 million from december 31 , 2013 to december 31 , 2014 because we have slowed our reinvestment of principal payments and sale proceeds received on our mbs . in addition , the majority of our purchases during the past twelve months have been for non-agency investments for which we typically borrow a lower percentage of the asset 's value . the following tables present the leverage against the amortized cost and fair value of our non-agency cmbs and cmbs io investments by credit rating of the collateral pledged as of december 31 , 2014 and december 31 , 2013 : replace_table_token_21_th 40 please refer to note 5 of the notes to the consolidated financial statements contained within this annual report on form 10-k as well as `` interest expense , annualized cost of funds , and effective borrowings costs `` within `` results of operations `` and “ liquidity and capital resources ” contained within this item 7 for additional information relating to our repurchase agreements . results of operations in addition to our operating results presented in accordance with gaap , our results of operations discussed below contain certain non-gaap financial measures including core net operating income , adjusted net interest income , and effective borrowing cost and certain financial metrics derived from non-gaap information , such as adjusted net interest spread and effective borrowing rate . schedules reconciling these non-gaap financial measures to gaap financial measures are provided in item 6 within part ii of this annual report on from 10-k. as discussed in more detail below , management believes these non-gaap financial measures are useful because they provide investors greater transparency to the information we use in our financial and operational decision-making processes . management also believes the presentation of these measures , when analyzed in conjunction with the our gaap operating results , allows investors to more effectively evaluate and compare our performance to that of our peers . however , because such measures are incomplete measures of our financial performance and involve differences from results computed in accordance with gaap , these non-gaap measures should be considered as a supplement to , and not as a substitute for , our gaap results as reported in our consolidated statements of comprehensive income ( loss ) . in addition , because not all companies use identical calculations , our presentation of such non-gaap measures may not be comparable to other similarly-titled measures of other companies . interest income and asset yields interest income includes gross interest earned from the coupon rate on the securities , effects of premium amortization and discount accretion , and other interest income resulting from prepayment penalty income or other yield maintenance items . the following tables present information regarding interest income earned and effective yield on our mbs by collateral type for the periods indicated : replace_table_token_22_th 41 replace_table_token_23_th ( 1 ) average balances are calculated as a simple average of the daily amortized cost and exclude unrealized gains and losses as well as securities pending settlement if applicable . ( 2 ) effective yields are weighted by average balance of the investments and based on annualized amounts . recalculation of effective yields may not be possible using data provided because certain components of interest income use a 360-day year for the calculation while others use actual number of days in the year . the following table presents the estimated impact of changes in average balances and average yields on the increase ( decrease ) in interest income for the periods indicated : replace_table_token_24_th ( 1 ) average balances are calculated as a simple average of the daily amortized cost and exclude unrealized gains and losses as well as securities pending settlement if applicable . ( 2 ) amount includes other interest income amounts of $ 3.9 million , $ 3,2 million , and $ 1.6 million for the years ended december 31 , 2014 , 2013 , and 2012 , respectively , related to prepayment penalty income and other yield maintenance items . the majority of the other interest income amounts for the years ended december 31 , 2014 and december 31 , 2013 related to cmbs io and the majority of the other interest income amount for the year ended december 31 , 2012 related to cmbs . our interest income from mbs for the year ended december 31 , 2014 decreased compared to the year ended december 31 , 2013 due to a decrease in the average balance of our mbs portfolio and a decrease in the weighted average effective yield earned on our mbs portfolio . the balance of our investment portfolio declined throughout the year as the proceeds we received from sales of and principal repayments on our mbs were used to pay down our repurchase agreements borrowings rather than fully reinvesting into new assets . our purchases of new assets declined during 2014 as there were fewer opportunities to add investments with acceptable risk and return profiles . average yields on our mbs were lower as purchases across the portfolio 42 were made at lower yields , in particular cmbs io , and we experienced downward resets in interest rates on our variable-rate securities during 2014. our interest income

liquidity and capital resources our primary sources of liquidity include borrowings under repurchase arrangements , monthly principal and interest payments we receive on our investments , unencumbered agency mbs , and unencumbered cash . additional sources may also include proceeds from the sale of investments , equity offerings , issuances of collateralized financings , and payments received from counterparties from interest rate swap agreements . we use our liquidity to fund our investment purchases and other operating costs , to pay down borrowings , to make payments to counterparties as required under interest rate swap agreements , and to pay dividends on our common stock . our available liquid assets as of december 31 , 2014 were $ 215.8 million compared to $ 208.7 million as of december 31 , 2013 . as of december 31 , 2014 , our liquid assets consist of unrestricted cash and cash equivalents of $ 43.9 million and $ 171.8 million in unencumbered agency mbs . unencumbered agency mbs are considered part of our liquid assets as we may pledge them to lenders and interest rate swap counterparties if we experience a margin call ( discussed further below ) . we do not include unencumbered non-agency mbs as liquid assets given the uncertainty of their liquidity in times of market stress . we continually monitor our current and forecasted available liquidity . our liquid assets may fluctuate from period to period based on our investment activities and whether we have recently raised , but not yet deployed , equity capital . however , we seek to maintain sufficient liquidity based on the sensitivity analysis and debt-to-equity requirements discussed below , to support our operations and meet our anticipated liquidity needs . we perform sensitivity analysis on our liquidity based on changes in the value of our investments due to changes in interest rates , credit spreads , lender haircuts and prepayment speeds .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources our primary sources of liquidity include borrowings under repurchase arrangements , monthly principal and interest payments we receive on our investments , unencumbered agency mbs , and unencumbered cash . additional sources may also include proceeds from the sale of investments , equity offerings , issuances of collateralized financings , and payments received from counterparties from interest rate swap agreements . we use our liquidity to fund our investment purchases and other operating costs , to pay down borrowings , to make payments to counterparties as required under interest rate swap agreements , and to pay dividends on our common stock . our available liquid assets as of december 31 , 2014 were $ 215.8 million compared to $ 208.7 million as of december 31 , 2013 . as of december 31 , 2014 , our liquid assets consist of unrestricted cash and cash equivalents of $ 43.9 million and $ 171.8 million in unencumbered agency mbs . unencumbered agency mbs are considered part of our liquid assets as we may pledge them to lenders and interest rate swap counterparties if we experience a margin call ( discussed further below ) . we do not include unencumbered non-agency mbs as liquid assets given the uncertainty of their liquidity in times of market stress . we continually monitor our current and forecasted available liquidity . our liquid assets may fluctuate from period to period based on our investment activities and whether we have recently raised , but not yet deployed , equity capital . however , we seek to maintain sufficient liquidity based on the sensitivity analysis and debt-to-equity requirements discussed below , to support our operations and meet our anticipated liquidity needs . we perform sensitivity analysis on our liquidity based on changes in the value of our investments due to changes in interest rates , credit spreads , lender haircuts and prepayment speeds . ``` Suspicious Activity Report : the following table provides quarterly information on weighted average effective yields by type of mbs investment as well as other information : 31 replace_table_token_8_th ( 1 ) represents a non-gaap financial measure . please refer to the discussion regarding the use of non-gaap financial measures and to the corresponding reconciliations of gaap to non-gaap financial measures provided in item 6 of this annual report on form 10-k. trends and recent market impacts there are certain conditions and prospective trends in the marketplace that have impacted our financial condition and results of operations and which may continue to impact us in the future . conditions and trends that had significant developments during 2014 and that may impact us in 2015 are discussed below . federal reserve monetary policy the fomc has held the targeted federal funds rate in a range of 0.00 % - 0.25 % since the end of 2008. the fomc has indicated that it will assess progress towards its objectives of maximum employment and 2 % inflation in determining how long to maintain the current target range . the fomc has also indicated that it believes that it can be patient in beginning to normalize the stance of monetary policy , although the pace of normalization will depend on the speed of progress toward its objectives . recent fomc releases seem to indicate that the fomc may begin monetary policy normalization in mid-2015 . given the uneven economic performance in the u.s. , the lack of consistent global economic growth , and current and developing geopolitical risks , it is possible that the fomc delays policy normalization or perhaps only modestly increases the targeted rate by 0.25 % or 0.50 % while it evaluates the impact of tighter credit on the u.s. economy . the fomc also continues to reinvest principal payments received on fixed-rate agency mbs purchased under its now-ended asset purchase programs , collectively known as `` qe3 `` . at its peak in 2014 , the fomc was purchasing $ 85 billion per month in securities . during the fourth quarter of this year , agency mbs net supply turned positive for the first time in several quarters , a trend which is likely to continue . this trend of positive net supply could negatively impact prices of fixed-rate agency mbs and may , by extension , impact prices of certain agency hybrid arms as well . asset credit spreads asset credit spreads are defined as the difference between the yields on securities with credit , prepayment or other risks and yields on benchmark securities without these risks ( typically treasuries or swaps ) , and that reflects the relative riskiness of owning the securities versus the benchmark . changes in asset credit spreads result from changes in the perceived riskiness of an investment versus its benchmark . asset credit spreads tightened dramatically in 2014 due in part to federal reserve policy , supply and demand imbalances leading to increased competition for assets , and global market liquidity from central bank activities . asset credit spreads widened modestly in the fourth quarter of 2014 as interest rates rallied and markets generally reduced risk . during the fourth quarter of 2014 , we continued to sell assets at most risk to spread widening . we continue to believe that global events 32 will lead to periods of spread volatility in 2015. in general , central bank policy and excess global liquidity have contributed to very low interest rates and a lower volatility environment , and investors in fixed income securities have bid asset prices up as a result as they pursue asset yields . the tight credit spread environment is one of the primary reasons that the company sold certain cmbs and cmbs io assets during the second half of 2014. regulatory uncertainty and reform since the financial crisis erupted in 2007 , regulators of financial institutions such as the federal reserve , the federal deposit insurance corporation , and the office of the comptroller of the currency have adopted regulatory requirements designed to enhance and maintain financial stability . financial institutions , particularly larger ones , are now generally subject to higher capital requirements and have reduced their reliance on lower cost , short-term funding sources . broker-dealer subsidiaries of financial institutions are our primary counterparties for repurchase agreement borrowings . in addition , certain regulations for money market funds have been instituted to address the risk of potential investor runs . money market funds are an important source of liquidity for the repurchase agreement market . these new financial regulations will be effective beginning in 2015 and through 2018 , although many institutions have begun initiatives to comply at a more rapid pace . we have been considering the potential impact of these new regulations on our counterparties and have been managing our financings in an effort to minimize the potential for our borrowing costs to increase . because we expect the new regulations may lead toward increasing our borrowing costs on repurchase agreements , we are evaluating alternative sources of funding including sources other than broker-dealer subsidiaries of large financial institutions . gse reform policy makers in washington dc continue to debate the future of fannie mae and freddie mac 's participation in the u.s. mortgage market . several bills have been introduced in the u.s. senate and the u.s. house of representatives regarding the reform and or dissolution of the gses . gse reform has been a very slow process given the continued softness in the housing market and the subdued pace of overall economic growth . the federal housing finance agency ( `` fhfa `` ) has offered details on a single mbs security platform that would combine elements of fannie mae 's and freddie mac 's current mbs features , which has a goal of eliminating pricing discrepancies in the two entities ' securities and to increase liquidity to benefit the housing market . story_separator_special_tag we use both pay-fixed and receive-fixed interest rate swaps to manage our overall hedge position . as of december 31 , 2014 , the weighted average notional amount of interest rate derivatives that will be effective for future periods are shown in the following table : 39 replace_table_token_20_th ( 1 ) weighted average rate is based on the weighted average notional outstanding . please refer to note 6 of the notes to the consolidated financial statements contained with this annual report on form 10-k as well as `` loss on derivative instruments , net `` within `` results of operations `` contained within this item 7 for additional information related to our derivative assets and liabilities . repurchase agreements our repurchase agreement borrowings have decreased $ 567.6 million from december 31 , 2013 to december 31 , 2014 because we have slowed our reinvestment of principal payments and sale proceeds received on our mbs . in addition , the majority of our purchases during the past twelve months have been for non-agency investments for which we typically borrow a lower percentage of the asset 's value . the following tables present the leverage against the amortized cost and fair value of our non-agency cmbs and cmbs io investments by credit rating of the collateral pledged as of december 31 , 2014 and december 31 , 2013 : replace_table_token_21_th 40 please refer to note 5 of the notes to the consolidated financial statements contained within this annual report on form 10-k as well as `` interest expense , annualized cost of funds , and effective borrowings costs `` within `` results of operations `` and “ liquidity and capital resources ” contained within this item 7 for additional information relating to our repurchase agreements . results of operations in addition to our operating results presented in accordance with gaap , our results of operations discussed below contain certain non-gaap financial measures including core net operating income , adjusted net interest income , and effective borrowing cost and certain financial metrics derived from non-gaap information , such as adjusted net interest spread and effective borrowing rate . schedules reconciling these non-gaap financial measures to gaap financial measures are provided in item 6 within part ii of this annual report on from 10-k. as discussed in more detail below , management believes these non-gaap financial measures are useful because they provide investors greater transparency to the information we use in our financial and operational decision-making processes . management also believes the presentation of these measures , when analyzed in conjunction with the our gaap operating results , allows investors to more effectively evaluate and compare our performance to that of our peers . however , because such measures are incomplete measures of our financial performance and involve differences from results computed in accordance with gaap , these non-gaap measures should be considered as a supplement to , and not as a substitute for , our gaap results as reported in our consolidated statements of comprehensive income ( loss ) . in addition , because not all companies use identical calculations , our presentation of such non-gaap measures may not be comparable to other similarly-titled measures of other companies . interest income and asset yields interest income includes gross interest earned from the coupon rate on the securities , effects of premium amortization and discount accretion , and other interest income resulting from prepayment penalty income or other yield maintenance items . the following tables present information regarding interest income earned and effective yield on our mbs by collateral type for the periods indicated : replace_table_token_22_th 41 replace_table_token_23_th ( 1 ) average balances are calculated as a simple average of the daily amortized cost and exclude unrealized gains and losses as well as securities pending settlement if applicable . ( 2 ) effective yields are weighted by average balance of the investments and based on annualized amounts . recalculation of effective yields may not be possible using data provided because certain components of interest income use a 360-day year for the calculation while others use actual number of days in the year . the following table presents the estimated impact of changes in average balances and average yields on the increase ( decrease ) in interest income for the periods indicated : replace_table_token_24_th ( 1 ) average balances are calculated as a simple average of the daily amortized cost and exclude unrealized gains and losses as well as securities pending settlement if applicable . ( 2 ) amount includes other interest income amounts of $ 3.9 million , $ 3,2 million , and $ 1.6 million for the years ended december 31 , 2014 , 2013 , and 2012 , respectively , related to prepayment penalty income and other yield maintenance items . the majority of the other interest income amounts for the years ended december 31 , 2014 and december 31 , 2013 related to cmbs io and the majority of the other interest income amount for the year ended december 31 , 2012 related to cmbs . our interest income from mbs for the year ended december 31 , 2014 decreased compared to the year ended december 31 , 2013 due to a decrease in the average balance of our mbs portfolio and a decrease in the weighted average effective yield earned on our mbs portfolio . the balance of our investment portfolio declined throughout the year as the proceeds we received from sales of and principal repayments on our mbs were used to pay down our repurchase agreements borrowings rather than fully reinvesting into new assets . our purchases of new assets declined during 2014 as there were fewer opportunities to add investments with acceptable risk and return profiles . average yields on our mbs were lower as purchases across the portfolio 42 were made at lower yields , in particular cmbs io , and we experienced downward resets in interest rates on our variable-rate securities during 2014. our interest income

we worked closely with our core customers to supply product from existing inventory as a bridge to new supply . we evaluated the potential applications for our biopolymer products and narrowed our market development focus to certain high value market segments : ( i ) performance additives , including film and bag applications ; and ( ii ) functional biodegradation . in march 2012 , we began directly recording product sales and shipping product from inventory to our customers . during the second half of 2012 , we developed , sampled and launched a compostable film grade resin , and a polymeric modifier for polyvinyl chloride ( `` pvc `` ) . we also established metabolix gmbh , a subsidiary located in cologne , germany , to serve as a focal point for our commercial activities in europe . this location is intended to enable us to directly access the european market , which is the largest for bioplastics . during 2013 , we continued to use existing biopolymer inventory as well as biobased and biodegradable polymers sourced from third parties to continue developing the market and to supply new and existing customers . in the second half of 2013 , we broadened our offering of film resins with the launch of mvera b5010 , a certified compostable resin for film and bag applications , and the launch of mvera b5011 , a certified compostable film resin for film and bag applications requiring transparency . we also launched i6003rp , a new polymeric modifier and processing aid for recycled pvc . throughout 2013 , we worked closely with customers developing applications using our materials . during 2013 we also engaged in discussions and collaborations with potential customers and suppliers in asia to expand our relationships there . in july 2013 , we formalized a memorandum of understanding ( `` mou `` ) with samsung fine chemicals , a company based in south korea with complementary biopolymer products and complementary regional positioning to metabolix . under the mou , we each fund our respective costs separately , but work together with the goal of expanding the global market for biodegradable polymers . our mou with samsung also provides access to additional biodegradable polymers that we can use in resin formulations designed to deliver the best performance and value to targeted customer applications . the mou is not a binding commitment and may be terminated at any time by either party without liability or obligations to the other party . in 2014 , we plan to increase our efforts in the areas of performance additives based on phas . we also expect to build on the performance , biodegradability and biobased content attributes of our pha 45 biopolymers as we continue to develop biobased and biodegradable resins for film and bag applications and for functional biodegradation applications based on phas and other biodegradable materials . we will also continue to explore alternative options for biopolymer manufacturing with a supply chain properly sized to our business . in 2013 , we conducted due diligence on several potential manufacturing sites , and we expect to select a site in 2014. once our pha supply chain is fully established , this captive capacity combined with access to additional biobased and biodegradable materials sourced from third parties , will allow us to continue formulating proprietary high-performance solutions for our target segments . however , our present capital resources are not sufficient to fund our planned operations for a twelve month period . we will , during 2014 , require significant additional funding to continue our operations . based on our current plans and projections , which remain subject to numerous uncertainties , we anticipate raising $ 50-60 million over the next 12-15 months . the timing , structure and vehicles for obtaining this financing are under consideration and it may be accomplished in stages . although we can not guarantee the availability of financing , our goal is to use this capital to build an intermediate scale specialty materials business based on pha additives that serves as the foundation for our longer-range plans and the future growth of our business . failure to receive additional funding will force us to delay , scale back or otherwise modify our business and manufacturing plans , sales and marketing efforts , research and development activities and other operations , and or seek strategic alternatives . biobased industrial chemicals platform . for our second platform , we are developing c4 and c3 chemicals from biobased sources , as opposed to the fossil fuels that are used to produce most industrial chemicals today . our process for creating biobased industrial c4 and c3 chemicals involves engineering metabolic pathways into microbes that , in a fermentation process , produce specific pha structures that serve as precursors for these chemicals . through our pha technology , we are able to control the microbe biology to achieve high concentrations of specific phas that accumulate inside cells as they metabolize sugars . this intracellular accumulation of the biopolymers inside the microbes is a unique and differentiating aspect of our technology . when the fermentation is completed , we use a novel internally developed recovery process known as `` fast `` ( fast-acting , selective thermolysis ) that converts the biopolymer directly to the target chemical using heat . in the c4 program , we have produced biobased gamma butyrolactone ( `` gbl `` ) at pilot scale and demonstrated a chemical profile that meets or exceeds the existing industrial specifications . in 2012 , we completed the preliminary design for a commercial scale plant to enable production of biobased gbl which , through an established conversion process , the biobased gbl can be further converted to biobased butanediol ( `` bdo `` ) . this plan , which could be implemented under a potential future collaboration , includes specifications for all of the components of our fermentation and recovery process . story_separator_special_tag during the twelve months ended december 31 , 2013 and 2012 , we also recognized $ 2,067 and $ 1,211 , respectively , related to the sale of biopolymer products . the increase of $ 856 for the twelve months ended december 31 , 2013 was primarily attributable to our implementation of our current product revenue recognition policy that resulted in a one-time shift of revenue , effectively pushing out sixty days of product revenue from 2012 to 2013. the company 's product revenue recognition policy is to defer product revenue recognition until the later of sixty days or cash receipt . at december 31 , 2013 and december 31 , 2012 , short-term deferred revenue on the company 's balance sheet included $ 537 and $ 786 of deferred product revenue , respectively . during the twelve months ended december 31 , 2013 , 52 we recognized $ 2,490 of grant revenue compared to $ 1,971 in 2012. the increase of $ 519 in grant revenue for the twelve months ended december 31 , 2013 was primarily attributable to new grants that commenced in 2013 , including $ 407 in grant revenue earned from our subcontracted award with the university of california ( los angeles ) and funded by the department of energy . during 2013 we recognized $ 618 in research and development revenue that was attributable to a funded research and development arrangement with a third party that completed during our fiscal quarter ended june 30 , 2013. during the twelve months ended december 31 , 2013 , we recognized $ 219 of license fee and royalty revenue and license and royalty revenue from related parties compared to $ 249 for the respective period in 2012. we anticipate that product revenue will increase in 2014 as we plan to continue to gain market acceptance for our products , although there will be fluctuations from quarter to quarter . however , failure to receive additional funding during 2014 will force us to delay , scale back or otherwise modify our business and manufacturing plans , sales and marketing efforts , all of which could impact our product sales . costs and expenses replace_table_token_7_th cost of product revenue cost of product revenue was $ 3,026 and $ 1,426 for the twelve months ended december 31 , 2013 and 2012 , respectively . these costs primarily include the cost of inventory associated with product revenue recognized during the respective years . cost of product revenue also includes the cost of product inventory written down during the respective years due to impairment . we routinely evaluate inventory in order to determine whether its current book value is below the cash value we expect to realize from its sale . during the twelve months ended december 31 , 2013 and 2012 , we recorded charges of $ 818 and $ 138 to cost of product revenue for inventory that we determined was impaired . cost of product revenue for each year shown also includes the cost of sample inventory shipped to prospective customers , warehousing , product packaging and certain freight charges . although there will be fluctuations from period to period , we expect our overall cost of product revenue will continue to increase during the next twelve months , commensurate with our increasing product sales . however , failure to receive additional funding during 2014 will force us to delay , scale back or otherwise modify our business and manufacturing plans , sales and marketing efforts , all of which could impact our product sales and associated cost of product revenue . in addition , cost of product revenue will increase as our lower cost inventory acquired from telles is depleted and replaced with our new formulated high-performance products that have higher costs than the material acquired from telles . we may also incur costs to produce inventory at small scale commercial manufacturing operations either on our own or with third parties . due to the expected high per unit cost of these smaller scale manufacturing operations , any inventory costs in excess of our expected saleable market price will be immediately expensed as cost of product revenue . we also anticipate that our cost of product revenue as a percentage of product sales will fluctuate during the next twelve months as our sales mix of biopolymer products changes . 53 research and development expenses research and development expenses were $ 19,127 and $ 23,177 for the twelve months ended december 31 , 2013 and 2012 , respectively . the decrease of $ 4,050 over fiscal 2012 was primarily attributable to decreases in material production costs , employee compensation and related benefit expenses , consulting , and depreciation expense . material production costs are primarily associated with our efforts to establish pilot manufacturing operations , including manufacturing of demonstration batches , for our biodegradable plastics and industrial chemicals products under development . expenses related to material production costs were $ 2,159 and $ 4,455 for the twelve months ended december 31 , 2013 and 2012 , respectively . the decrease of $ 2,296 was primarily due to charges incurred during 2012 in connection with a terminated manufacturing demonstration agreement with a third party that were not repeated during 2013. employee compensation and related benefit expenses were $ 11,045 and $ 12,047 for the twelve months ended december 31 , 2013 and 2012 , respectively . the decrease of $ 1,002 was primarily attributable to costs associated with our restructuring during the first quarter of 2012. consulting costs decreased to $ 156 from $ 539 for the twelve months ended december 31 , 2013 and 2012 , respectively . the reduction of $ 383 was primarily due to our completion of a research project in 2012 , as well as discontinued use of consultants for certain chemical projects in 2013. depreciation expense was $ 831 and $ 1,164 for the twelve months ended december 31 , 2013 and 2012 , respectively

liquidity and capital resources currently , we require cash to fund our working capital needs , to purchase capital assets and to pay our operating lease obligations . the primary sources of our liquidity have been : equity financing ; our former strategic alliance with adm ; government grants ; product revenues ; and interest earned on cash and short-term investments . we have incurred significant expenses relating to our research and development efforts . as a result , we have incurred net losses since our inception . as of december 31 , 2013 , we had an accumulated deficit of $ 272,538. our total unrestricted cash , cash equivalents and investments as of december 31 , 2013 were $ 19,209 as compared to $ 46,281 at december 31 , 2012. as of december 31 , 2013 , we had no outstanding debt . our cash and cash equivalents at december 31 , 2013 were held for working capital purposes . we do not enter into investments for trading or speculative purposes . the primary objective of our investment activities is to preserve our capital . as of december 31 , 2013 , we had restricted cash of $ 619. restricted cash consists of $ 494 held in connection with the lease agreement for our cambridge , massachusetts facility and $ 125 held in connection with our corporate credit card program . investments are made in accordance with our corporate investment policy , as approved by our board of directors . investments are limited to high quality corporate debt , u.s. treasury bills and notes , bank debt obligations , municipal debt obligations and asset-backed securities . the policy establishes maturity limits , concentration limits , and liquidity requirements . as of december 31 , 2013 , we were in compliance with this policy .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 currently , we require cash to fund our working capital needs , to purchase capital assets and to pay our operating lease obligations . the primary sources of our liquidity have been : equity financing ; our former strategic alliance with adm ; government grants ; product revenues ; and interest earned on cash and short-term investments . we have incurred significant expenses relating to our research and development efforts . as a result , we have incurred net losses since our inception . as of december 31 , 2013 , we had an accumulated deficit of $ 272,538. our total unrestricted cash , cash equivalents and investments as of december 31 , 2013 were $ 19,209 as compared to $ 46,281 at december 31 , 2012. as of december 31 , 2013 , we had no outstanding debt . our cash and cash equivalents at december 31 , 2013 were held for working capital purposes . we do not enter into investments for trading or speculative purposes . the primary objective of our investment activities is to preserve our capital . as of december 31 , 2013 , we had restricted cash of $ 619. restricted cash consists of $ 494 held in connection with the lease agreement for our cambridge , massachusetts facility and $ 125 held in connection with our corporate credit card program . investments are made in accordance with our corporate investment policy , as approved by our board of directors . investments are limited to high quality corporate debt , u.s. treasury bills and notes , bank debt obligations , municipal debt obligations and asset-backed securities . the policy establishes maturity limits , concentration limits , and liquidity requirements . as of december 31 , 2013 , we were in compliance with this policy . ``` Suspicious Activity Report : we worked closely with our core customers to supply product from existing inventory as a bridge to new supply . we evaluated the potential applications for our biopolymer products and narrowed our market development focus to certain high value market segments : ( i ) performance additives , including film and bag applications ; and ( ii ) functional biodegradation . in march 2012 , we began directly recording product sales and shipping product from inventory to our customers . during the second half of 2012 , we developed , sampled and launched a compostable film grade resin , and a polymeric modifier for polyvinyl chloride ( `` pvc `` ) . we also established metabolix gmbh , a subsidiary located in cologne , germany , to serve as a focal point for our commercial activities in europe . this location is intended to enable us to directly access the european market , which is the largest for bioplastics . during 2013 , we continued to use existing biopolymer inventory as well as biobased and biodegradable polymers sourced from third parties to continue developing the market and to supply new and existing customers . in the second half of 2013 , we broadened our offering of film resins with the launch of mvera b5010 , a certified compostable resin for film and bag applications , and the launch of mvera b5011 , a certified compostable film resin for film and bag applications requiring transparency . we also launched i6003rp , a new polymeric modifier and processing aid for recycled pvc . throughout 2013 , we worked closely with customers developing applications using our materials . during 2013 we also engaged in discussions and collaborations with potential customers and suppliers in asia to expand our relationships there . in july 2013 , we formalized a memorandum of understanding ( `` mou `` ) with samsung fine chemicals , a company based in south korea with complementary biopolymer products and complementary regional positioning to metabolix . under the mou , we each fund our respective costs separately , but work together with the goal of expanding the global market for biodegradable polymers . our mou with samsung also provides access to additional biodegradable polymers that we can use in resin formulations designed to deliver the best performance and value to targeted customer applications . the mou is not a binding commitment and may be terminated at any time by either party without liability or obligations to the other party . in 2014 , we plan to increase our efforts in the areas of performance additives based on phas . we also expect to build on the performance , biodegradability and biobased content attributes of our pha 45 biopolymers as we continue to develop biobased and biodegradable resins for film and bag applications and for functional biodegradation applications based on phas and other biodegradable materials . we will also continue to explore alternative options for biopolymer manufacturing with a supply chain properly sized to our business . in 2013 , we conducted due diligence on several potential manufacturing sites , and we expect to select a site in 2014. once our pha supply chain is fully established , this captive capacity combined with access to additional biobased and biodegradable materials sourced from third parties , will allow us to continue formulating proprietary high-performance solutions for our target segments . however , our present capital resources are not sufficient to fund our planned operations for a twelve month period . we will , during 2014 , require significant additional funding to continue our operations . based on our current plans and projections , which remain subject to numerous uncertainties , we anticipate raising $ 50-60 million over the next 12-15 months . the timing , structure and vehicles for obtaining this financing are under consideration and it may be accomplished in stages . although we can not guarantee the availability of financing , our goal is to use this capital to build an intermediate scale specialty materials business based on pha additives that serves as the foundation for our longer-range plans and the future growth of our business . failure to receive additional funding will force us to delay , scale back or otherwise modify our business and manufacturing plans , sales and marketing efforts , research and development activities and other operations , and or seek strategic alternatives . biobased industrial chemicals platform . for our second platform , we are developing c4 and c3 chemicals from biobased sources , as opposed to the fossil fuels that are used to produce most industrial chemicals today . our process for creating biobased industrial c4 and c3 chemicals involves engineering metabolic pathways into microbes that , in a fermentation process , produce specific pha structures that serve as precursors for these chemicals . through our pha technology , we are able to control the microbe biology to achieve high concentrations of specific phas that accumulate inside cells as they metabolize sugars . this intracellular accumulation of the biopolymers inside the microbes is a unique and differentiating aspect of our technology . when the fermentation is completed , we use a novel internally developed recovery process known as `` fast `` ( fast-acting , selective thermolysis ) that converts the biopolymer directly to the target chemical using heat . in the c4 program , we have produced biobased gamma butyrolactone ( `` gbl `` ) at pilot scale and demonstrated a chemical profile that meets or exceeds the existing industrial specifications . in 2012 , we completed the preliminary design for a commercial scale plant to enable production of biobased gbl which , through an established conversion process , the biobased gbl can be further converted to biobased butanediol ( `` bdo `` ) . this plan , which could be implemented under a potential future collaboration , includes specifications for all of the components of our fermentation and recovery process . story_separator_special_tag during the twelve months ended december 31 , 2013 and 2012 , we also recognized $ 2,067 and $ 1,211 , respectively , related to the sale of biopolymer products . the increase of $ 856 for the twelve months ended december 31 , 2013 was primarily attributable to our implementation of our current product revenue recognition policy that resulted in a one-time shift of revenue , effectively pushing out sixty days of product revenue from 2012 to 2013. the company 's product revenue recognition policy is to defer product revenue recognition until the later of sixty days or cash receipt . at december 31 , 2013 and december 31 , 2012 , short-term deferred revenue on the company 's balance sheet included $ 537 and $ 786 of deferred product revenue , respectively . during the twelve months ended december 31 , 2013 , 52 we recognized $ 2,490 of grant revenue compared to $ 1,971 in 2012. the increase of $ 519 in grant revenue for the twelve months ended december 31 , 2013 was primarily attributable to new grants that commenced in 2013 , including $ 407 in grant revenue earned from our subcontracted award with the university of california ( los angeles ) and funded by the department of energy . during 2013 we recognized $ 618 in research and development revenue that was attributable to a funded research and development arrangement with a third party that completed during our fiscal quarter ended june 30 , 2013. during the twelve months ended december 31 , 2013 , we recognized $ 219 of license fee and royalty revenue and license and royalty revenue from related parties compared to $ 249 for the respective period in 2012. we anticipate that product revenue will increase in 2014 as we plan to continue to gain market acceptance for our products , although there will be fluctuations from quarter to quarter . however , failure to receive additional funding during 2014 will force us to delay , scale back or otherwise modify our business and manufacturing plans , sales and marketing efforts , all of which could impact our product sales . costs and expenses replace_table_token_7_th cost of product revenue cost of product revenue was $ 3,026 and $ 1,426 for the twelve months ended december 31 , 2013 and 2012 , respectively . these costs primarily include the cost of inventory associated with product revenue recognized during the respective years . cost of product revenue also includes the cost of product inventory written down during the respective years due to impairment . we routinely evaluate inventory in order to determine whether its current book value is below the cash value we expect to realize from its sale . during the twelve months ended december 31 , 2013 and 2012 , we recorded charges of $ 818 and $ 138 to cost of product revenue for inventory that we determined was impaired . cost of product revenue for each year shown also includes the cost of sample inventory shipped to prospective customers , warehousing , product packaging and certain freight charges . although there will be fluctuations from period to period , we expect our overall cost of product revenue will continue to increase during the next twelve months , commensurate with our increasing product sales . however , failure to receive additional funding during 2014 will force us to delay , scale back or otherwise modify our business and manufacturing plans , sales and marketing efforts , all of which could impact our product sales and associated cost of product revenue . in addition , cost of product revenue will increase as our lower cost inventory acquired from telles is depleted and replaced with our new formulated high-performance products that have higher costs than the material acquired from telles . we may also incur costs to produce inventory at small scale commercial manufacturing operations either on our own or with third parties . due to the expected high per unit cost of these smaller scale manufacturing operations , any inventory costs in excess of our expected saleable market price will be immediately expensed as cost of product revenue . we also anticipate that our cost of product revenue as a percentage of product sales will fluctuate during the next twelve months as our sales mix of biopolymer products changes . 53 research and development expenses research and development expenses were $ 19,127 and $ 23,177 for the twelve months ended december 31 , 2013 and 2012 , respectively . the decrease of $ 4,050 over fiscal 2012 was primarily attributable to decreases in material production costs , employee compensation and related benefit expenses , consulting , and depreciation expense . material production costs are primarily associated with our efforts to establish pilot manufacturing operations , including manufacturing of demonstration batches , for our biodegradable plastics and industrial chemicals products under development . expenses related to material production costs were $ 2,159 and $ 4,455 for the twelve months ended december 31 , 2013 and 2012 , respectively . the decrease of $ 2,296 was primarily due to charges incurred during 2012 in connection with a terminated manufacturing demonstration agreement with a third party that were not repeated during 2013. employee compensation and related benefit expenses were $ 11,045 and $ 12,047 for the twelve months ended december 31 , 2013 and 2012 , respectively . the decrease of $ 1,002 was primarily attributable to costs associated with our restructuring during the first quarter of 2012. consulting costs decreased to $ 156 from $ 539 for the twelve months ended december 31 , 2013 and 2012 , respectively . the reduction of $ 383 was primarily due to our completion of a research project in 2012 , as well as discontinued use of consultants for certain chemical projects in 2013. depreciation expense was $ 831 and $ 1,164 for the twelve months ended december 31 , 2013 and 2012 , respectively

we also intend to seek regional partnerships for the development and commercialization of afrezza in foreign jurisdictions where there are appropriate commercial opportunities . our business is subject to significant risks , including but not limited to our ability to successfully commercialize and manufacture sufficient quantities of arezza and the risks inherent in our ongoing clinical trials and the regulatory approval process for our product candidates . additional significant risks also include the results of our research and development efforts , competition from other products and technologies and uncertainties associated with obtaining and enforcing patent rights . research and development expenses historically our research and development expenses have consisted mainly of costs associated with research and development of our product candidates , including associated clinical trials , and manufacturing process development . this includes the salaries , benefits and stock-based compensation of research and development personnel , raw materials , laboratory supplies and materials , facility costs , costs for consultants and related contract research , licensing fees , and depreciation of equipment . we track research and development costs by the type of cost incurred . we partially offset research and development expenses with the recognition of estimated amounts receivable from the state of connecticut pursuant to a program under which we can exchange qualified research and development income tax credits for cash . 46 our research and development staff conducts our internal research and development activities , which include research , product development , clinical development , manufacturing process development and related activities . this staff is located in our facilities in valencia , california and danbury , connecticut . we expense research and development costs as we incur them . general and administrative expenses our general and administrative expenses are driven by salaries , benefits and stock-based compensation for administrative , finance , business development , human resources , legal and information systems support personnel . in addition , general and administrative expenses include professional service fees and business insurance costs . product manufacturing expenses product manufacturing expenses represent under-absorbed labor and overhead and inventory write-offs , which are expensed in the period in which they are incurred rather than as a portion of the inventory cost . critical accounting policies we have based our discussion and analysis of our financial condition and results of operations on our financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities and expenses . we evaluate our estimates and judgments on an ongoing basis . 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 estimates of expenses such as stock option expenses and judgments about the carrying values of assets and liabilities . actual results may differ from these estimates under different assumptions or conditions . the significant accounting policies that are critical to the judgments and estimates used in the preparation of our financial statements are described in more detail below . license and collaboration agreements pursuant to the sanofi license agreement , we granted to sanofi exclusive , worldwide licenses to certain of our patents , trademarks and know-how for the development and commercialization of afrezza . the terms of the sanofi license agreement provide for consideration to us in the form of a non-refundable up-front payment , product sales , manufacturing , regulatory and sales milestone payments and profit and loss sharing . on january 4 , 2016 , we received written notice from sanofi of its election to terminate in its entirety the sanofi license agreement , effective either on april 4 , 2016 or july 4 , 2016 depending on the permitted basis for termination . we analyze consideration received under the provisions of asc 605 , revenue recognition , to determine whether the consideration , or a portion thereof , could be recognized as revenue . asc 605 provides that revenue is recognized when there is persuasive evidence that an arrangement exists , delivery has occurred or services have been rendered , the price is fixed or determinable and collection is reasonably assured . in arrangements involving the delivery of more than one element , each required deliverable is evaluated to determine whether it qualifies as a separate unit of accounting . this determination is generally based on whether the deliverable has “stand-alone value” to the customer . the arrangement 's consideration that is fixed and determinable is then allocated to each separate unit of accounting based on the relative selling price of each deliverable . the estimated selling price of each deliverable is determined using the following hierarchy of values : ( i ) vendor-specific objective evidence of fair value , ( ii ) third-party evidence of selling price and ( iii ) best estimate of selling price ( besp ) . the besp reflects our best estimate of what the selling price would be if the deliverable was regularly sold by us on a stand-alone basis . in general , the consideration allocated to each unit of accounting is recognized as the related goods or services are delivered , limited to the consideration that is not contingent upon future deliverables . the assessment of multiple element arrangements requires judgment in order to determine the appropriate units of accounting and the points in time that , or periods over which , revenue should be recognized . as of 47 december 31 , 2015 , we did not have the ability to estimate the amount of costs that would potentially be incurred under the loss sharing provision of the sanofi license agreement , and accordingly we believe the fixed and determinable fee requirement for revenue recognition was not met . story_separator_special_tag 51 research and development expenses the following table provides a comparison of the research and development expense categories for the years ended december 31 , 2015 and 2014 ( dollars in thousands ) : replace_table_token_3_th the decrease in research and development expenses of $ 70.6 million for the year ended december 31 , 2015 compared to the year ended december 31 , 2014 was primarily due to a decrease of $ 36.0 million in manufacturing process development expenses resulting from the shift to commercial production of afrezza of $ 30.8 million and decreased expenses of $ 0.7 million following the completion of restructuring activities in early 2015. the decrease is also attributable to a $ 19.3 million decrease in stock-based compensation expense compared to 2014 as a result of a non-recurring modification of the settlement terms ( the “modification” ) of certain performance-based restricted stock units and the achievement of performance-based grants in 2014 and the first quarter of 2015. the modification resulted in the reclassification of these performance grants from equity awards to liability awards , which required re-measurement on the modification date and resulted in incremental stock-based compensation expense . further , the reductions in research and development expenses was also driven by a decrease in clinical trial related expenses of $ 16.0 million primarily resulting from the completion of the affinity trials of $ 11.1 million and decreased personnel costs related to restructuring of $ 9.0 million . we anticipate that our overall research and development expenses will decrease in 2016 compared to 2015 due to the focus on the transition of the afrezza rights in 2016 and minimal incremental cost associated with our development pipeline . general and administrative expenses the following table provides a comparison of the general and administrative expense categories for the years ended december 31 , 2015 and 2014 ( dollars in thousands ) : replace_table_token_4_th the decrease in general and administrative expenses of $ 38.4 million for the year ended december 31 , 2015 compared to the year ended december 31 , 2014 was primarily due to decreased stock-based compensation expense of $ 20.6 million , resulting from the modification and achievement of performance-based grants in 2014 and the first quarter of 2015 , as described above . additionally , the decrease is also attributable to professional fees of $ 13.8 million related to the sanofi license agreement incurred in the third quarter of 2014 and decreased expenses of $ 3.2 million following the completion of restructuring activities and decreased personnel costs in early 2015. we expect general and administrative expenses to remain relatively flat in 2016 as compared to 2015 due to restructuring measures in 2015 offset by an increase in professional fees related to the sanofi termination . we expect to have sales and marketing expenses in 2016 due to termination of the sanofi license agreement and the transition of sales and marketing efforts to us in 2016 . 52 product manufacturing expenses product manufacturing expenses were $ 67.4 million for the year ended december 31 , 2015 , resulting from product manufacturing costs associated with afrezza product sales , which can not be capitalized due to excess capacity . we had no product manufacturing expense for the year ended december 31 , 2014 , as pre-commercial manufacturing costs associated with afrezza were accounted for as research and development expenses . product manufacturing expenses represent under-absorbed labor and overhead of $ 21.4 million and inventory write-offs of 36.1 million , which are expensed in the period in which they are incurred . although the sanofi license agreement will terminate in the second quarter of 2016 , we expect our 2016 production of afrezza to be relatively consistent with production levels in 2015 , primarily as a result of existing customer demand . with the exception of the inventory write-off , we expect product manufacturing expense to remain relatively flat in 2016 compared to 2015. property and equipment impairment property and equipment impairment increased $ 140.4 million for the year ended december 31 , 2015 compared to the year ended december 31 , 2014. the property and equipment impairment was to reduce the carrying amount of our real property and machinery and equipment to fair value based on our impairment assessment in the fourth quarter of 2015. loss on purchase commitments loss on purchase commitments increased $ 66.2 million for the year ended december 31 , 2015 compared to the year end 2014. the loss on purchase commitments was related to the loss on future purchase commitments resulting from our assessment of excess inventory as a result of lower than expected sales of afrezza as well as a lower of cost or market adjustment due to estimated conversion costs in excess of our estimated selling price of afrezza . other income ( expense ) other income for the year ended december 31 , 2015 was $ 1.4 million resulting from the relief of an accrual for potential expenses associated with the sale of intellectual property related to oncology in 2014 , which was subsequently resolved without payment in the first quarter of 2015. for the year ended december 31 , 2014 , other income was $ 1.7 million resulting from the sale of intellectual property related to oncology in the third quarter of 2014 in the amount of $ 7.9 million , partially offset by a $ 6.4 million non-cash charge recognized upon the conversion of 2019 notes into equity . story_separator_special_tag principal amount of 2019 notes bearing interest at 9.75 % per annum , $ 5.0 million of which is due and payable in july 2016 , $ 15.0 million of which is due and payable in july 2017 , $ 15.0 million of which is due and payable in july 2018 and $ 25.0 million of which is due and payable in july and december 2019 ; $ 20.0 million principal amount of tranche b notes bearing interest at 8.75 % per annum , $ 5.0 million of

loss on extinguishment of debt loss on extinguishment of debt increased $ 1.0 million for the year ended december 31 , 2015 compared to the year ended december 31 , 2014. the loss on extinguishment is due to the settlement of the 2015 notes through payment of cash and issuance of new debt . interest income and expense interest expense increased $ 3.7 million from $ 20.4 million for the year ended december 31 , 2014 to $ 24.1 million for the year ended december 31 , 2015. the increase was primarily due to $ 5.8 million interest expense associated with the milestone payment resulting from the achievement and re-measurement of the second milestone under the milestone agreement in the first quarter of 2015 compared to the $ 1.9 million interest expense from the payment of the first milestone in 2014. the increase was also due to an increase of $ 1.7 million related to the sanofi loan facility and $ 0.8 million in interest for 2018 notes , which was offset by a decrease in interest expense of $ 2.7 million resulting from the maturity of 2015 notes . years ended december 31 , 2014 and 2013 revenues during the years ended december 31 , 2014 and 2013 , we did not recognize any revenue .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```loss on extinguishment of debt loss on extinguishment of debt increased $ 1.0 million for the year ended december 31 , 2015 compared to the year ended december 31 , 2014. the loss on extinguishment is due to the settlement of the 2015 notes through payment of cash and issuance of new debt . interest income and expense interest expense increased $ 3.7 million from $ 20.4 million for the year ended december 31 , 2014 to $ 24.1 million for the year ended december 31 , 2015. the increase was primarily due to $ 5.8 million interest expense associated with the milestone payment resulting from the achievement and re-measurement of the second milestone under the milestone agreement in the first quarter of 2015 compared to the $ 1.9 million interest expense from the payment of the first milestone in 2014. the increase was also due to an increase of $ 1.7 million related to the sanofi loan facility and $ 0.8 million in interest for 2018 notes , which was offset by a decrease in interest expense of $ 2.7 million resulting from the maturity of 2015 notes . years ended december 31 , 2014 and 2013 revenues during the years ended december 31 , 2014 and 2013 , we did not recognize any revenue . ``` Suspicious Activity Report : we also intend to seek regional partnerships for the development and commercialization of afrezza in foreign jurisdictions where there are appropriate commercial opportunities . our business is subject to significant risks , including but not limited to our ability to successfully commercialize and manufacture sufficient quantities of arezza and the risks inherent in our ongoing clinical trials and the regulatory approval process for our product candidates . additional significant risks also include the results of our research and development efforts , competition from other products and technologies and uncertainties associated with obtaining and enforcing patent rights . research and development expenses historically our research and development expenses have consisted mainly of costs associated with research and development of our product candidates , including associated clinical trials , and manufacturing process development . this includes the salaries , benefits and stock-based compensation of research and development personnel , raw materials , laboratory supplies and materials , facility costs , costs for consultants and related contract research , licensing fees , and depreciation of equipment . we track research and development costs by the type of cost incurred . we partially offset research and development expenses with the recognition of estimated amounts receivable from the state of connecticut pursuant to a program under which we can exchange qualified research and development income tax credits for cash . 46 our research and development staff conducts our internal research and development activities , which include research , product development , clinical development , manufacturing process development and related activities . this staff is located in our facilities in valencia , california and danbury , connecticut . we expense research and development costs as we incur them . general and administrative expenses our general and administrative expenses are driven by salaries , benefits and stock-based compensation for administrative , finance , business development , human resources , legal and information systems support personnel . in addition , general and administrative expenses include professional service fees and business insurance costs . product manufacturing expenses product manufacturing expenses represent under-absorbed labor and overhead and inventory write-offs , which are expensed in the period in which they are incurred rather than as a portion of the inventory cost . critical accounting policies we have based our discussion and analysis of our financial condition and results of operations on our financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities and expenses . we evaluate our estimates and judgments on an ongoing basis . 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 estimates of expenses such as stock option expenses and judgments about the carrying values of assets and liabilities . actual results may differ from these estimates under different assumptions or conditions . the significant accounting policies that are critical to the judgments and estimates used in the preparation of our financial statements are described in more detail below . license and collaboration agreements pursuant to the sanofi license agreement , we granted to sanofi exclusive , worldwide licenses to certain of our patents , trademarks and know-how for the development and commercialization of afrezza . the terms of the sanofi license agreement provide for consideration to us in the form of a non-refundable up-front payment , product sales , manufacturing , regulatory and sales milestone payments and profit and loss sharing . on january 4 , 2016 , we received written notice from sanofi of its election to terminate in its entirety the sanofi license agreement , effective either on april 4 , 2016 or july 4 , 2016 depending on the permitted basis for termination . we analyze consideration received under the provisions of asc 605 , revenue recognition , to determine whether the consideration , or a portion thereof , could be recognized as revenue . asc 605 provides that revenue is recognized when there is persuasive evidence that an arrangement exists , delivery has occurred or services have been rendered , the price is fixed or determinable and collection is reasonably assured . in arrangements involving the delivery of more than one element , each required deliverable is evaluated to determine whether it qualifies as a separate unit of accounting . this determination is generally based on whether the deliverable has “stand-alone value” to the customer . the arrangement 's consideration that is fixed and determinable is then allocated to each separate unit of accounting based on the relative selling price of each deliverable . the estimated selling price of each deliverable is determined using the following hierarchy of values : ( i ) vendor-specific objective evidence of fair value , ( ii ) third-party evidence of selling price and ( iii ) best estimate of selling price ( besp ) . the besp reflects our best estimate of what the selling price would be if the deliverable was regularly sold by us on a stand-alone basis . in general , the consideration allocated to each unit of accounting is recognized as the related goods or services are delivered , limited to the consideration that is not contingent upon future deliverables . the assessment of multiple element arrangements requires judgment in order to determine the appropriate units of accounting and the points in time that , or periods over which , revenue should be recognized . as of 47 december 31 , 2015 , we did not have the ability to estimate the amount of costs that would potentially be incurred under the loss sharing provision of the sanofi license agreement , and accordingly we believe the fixed and determinable fee requirement for revenue recognition was not met . story_separator_special_tag 51 research and development expenses the following table provides a comparison of the research and development expense categories for the years ended december 31 , 2015 and 2014 ( dollars in thousands ) : replace_table_token_3_th the decrease in research and development expenses of $ 70.6 million for the year ended december 31 , 2015 compared to the year ended december 31 , 2014 was primarily due to a decrease of $ 36.0 million in manufacturing process development expenses resulting from the shift to commercial production of afrezza of $ 30.8 million and decreased expenses of $ 0.7 million following the completion of restructuring activities in early 2015. the decrease is also attributable to a $ 19.3 million decrease in stock-based compensation expense compared to 2014 as a result of a non-recurring modification of the settlement terms ( the “modification” ) of certain performance-based restricted stock units and the achievement of performance-based grants in 2014 and the first quarter of 2015. the modification resulted in the reclassification of these performance grants from equity awards to liability awards , which required re-measurement on the modification date and resulted in incremental stock-based compensation expense . further , the reductions in research and development expenses was also driven by a decrease in clinical trial related expenses of $ 16.0 million primarily resulting from the completion of the affinity trials of $ 11.1 million and decreased personnel costs related to restructuring of $ 9.0 million . we anticipate that our overall research and development expenses will decrease in 2016 compared to 2015 due to the focus on the transition of the afrezza rights in 2016 and minimal incremental cost associated with our development pipeline . general and administrative expenses the following table provides a comparison of the general and administrative expense categories for the years ended december 31 , 2015 and 2014 ( dollars in thousands ) : replace_table_token_4_th the decrease in general and administrative expenses of $ 38.4 million for the year ended december 31 , 2015 compared to the year ended december 31 , 2014 was primarily due to decreased stock-based compensation expense of $ 20.6 million , resulting from the modification and achievement of performance-based grants in 2014 and the first quarter of 2015 , as described above . additionally , the decrease is also attributable to professional fees of $ 13.8 million related to the sanofi license agreement incurred in the third quarter of 2014 and decreased expenses of $ 3.2 million following the completion of restructuring activities and decreased personnel costs in early 2015. we expect general and administrative expenses to remain relatively flat in 2016 as compared to 2015 due to restructuring measures in 2015 offset by an increase in professional fees related to the sanofi termination . we expect to have sales and marketing expenses in 2016 due to termination of the sanofi license agreement and the transition of sales and marketing efforts to us in 2016 . 52 product manufacturing expenses product manufacturing expenses were $ 67.4 million for the year ended december 31 , 2015 , resulting from product manufacturing costs associated with afrezza product sales , which can not be capitalized due to excess capacity . we had no product manufacturing expense for the year ended december 31 , 2014 , as pre-commercial manufacturing costs associated with afrezza were accounted for as research and development expenses . product manufacturing expenses represent under-absorbed labor and overhead of $ 21.4 million and inventory write-offs of 36.1 million , which are expensed in the period in which they are incurred . although the sanofi license agreement will terminate in the second quarter of 2016 , we expect our 2016 production of afrezza to be relatively consistent with production levels in 2015 , primarily as a result of existing customer demand . with the exception of the inventory write-off , we expect product manufacturing expense to remain relatively flat in 2016 compared to 2015. property and equipment impairment property and equipment impairment increased $ 140.4 million for the year ended december 31 , 2015 compared to the year ended december 31 , 2014. the property and equipment impairment was to reduce the carrying amount of our real property and machinery and equipment to fair value based on our impairment assessment in the fourth quarter of 2015. loss on purchase commitments loss on purchase commitments increased $ 66.2 million for the year ended december 31 , 2015 compared to the year end 2014. the loss on purchase commitments was related to the loss on future purchase commitments resulting from our assessment of excess inventory as a result of lower than expected sales of afrezza as well as a lower of cost or market adjustment due to estimated conversion costs in excess of our estimated selling price of afrezza . other income ( expense ) other income for the year ended december 31 , 2015 was $ 1.4 million resulting from the relief of an accrual for potential expenses associated with the sale of intellectual property related to oncology in 2014 , which was subsequently resolved without payment in the first quarter of 2015. for the year ended december 31 , 2014 , other income was $ 1.7 million resulting from the sale of intellectual property related to oncology in the third quarter of 2014 in the amount of $ 7.9 million , partially offset by a $ 6.4 million non-cash charge recognized upon the conversion of 2019 notes into equity . story_separator_special_tag principal amount of 2019 notes bearing interest at 9.75 % per annum , $ 5.0 million of which is due and payable in july 2016 , $ 15.0 million of which is due and payable in july 2017 , $ 15.0 million of which is due and payable in july 2018 and $ 25.0 million of which is due and payable in july and december 2019 ; $ 20.0 million principal amount of tranche b notes bearing interest at 8.75 % per annum , $ 5.0 million of

in addition to improved fuel economy , we anticipate that the performance of our vehicles on-route will reduce long-term vehicle maintenance expense by approximately 50 % as compared to fossil-fueled trucks . in march of 2013 , we purchased the former workhorse custom chassis assembly plant in union city , indiana from navistar international ( nav : nyse ) . with this acquisition , we acquired the capability to be an original equipment manufacturer ( oem ) of class 3-6 commercial-grade , medium-duty truck chassis , to be marketed under the workhorse® brand . all workhorse last mile delivery vans are assembled in the union city assembly facility . from our development modeling and the existing performance of our electric vehicles on american roads , we estimate that our e-gen range-extended electric delivery vans will save over $ 150,000 in fuel and maintenance savings over the 20-year life of the vehicle . due to the positive return-on-investment , we place a premium price for our vehicles when selling to major fleet buyers . we expect that fleet buyers will be able to achieve a four-year or better return-on-investment ( without government incentives ) , which we believe justifies the higher acquisition cost of our vehicles . we believe that we are the only medium-duty battery-electric oem in the u.s. and we will be introducing additional light-duty electric and range-extended electric vehicles in late 2018 and 2019. our goal is to continue to increase sales and production , while executing on our cost-down strategy to a point that will enable us to achieve gross margin profitability of the last mile-delivery van platform . as a key strategy , we have begun development of the workhorse n-gen platform , which has been accelerated from our development efforts on the usps ngdv program . the workhorse n-gen electric cargo van platform will be available in multiple size configurations , 500 , 700 and 1,000 cubic feet . we intend to initiate the launch with the 500 cubic foot configuration where it is designed to compete with the sprinter , transit and ram gasoline/diesel trucks in the commercial sector with an emphasis on last-mile delivery and other service-oriented businesses , such as telecom . this ultra-low floor platform incorporates state-of-the-art safety features , economy and performance : we expect these vehicles to achieve a fuel economy of approximately 60 mpge , and offer fleet operators the most favorable total cost-of-ownership of any comparable vehicle available today . we believe we are the first american oem to market a u.s. built electric cargo van , and early indications of fleet interest are significant . we expect the n-gen trucks will be supported by our ryder systems partnership . as a direct result of the usps award and development efforts , workhorse has begun development on the workhorse w-15 , a medium- and light-duty pickup truck platform aimed at commercial fleets . the w-15 pickup truck powertrain is a smaller version of its sister vehicle , the medium-duty battery electric powertrain , and will have two purpose-built variants , a w-15 work truck ( pickup ) and an n-gen cargo van . either of these two variants will appeal to delivery fleets , utility companies , telecom companies , municipalities and more . our horsefly delivery drone is a custom designed , purpose-built drone that is fully integrated in our electric trucks . horsefly is an octocopter designed with a maximum gross weight of 30 lbs . , a 10 lb . payload and a maximum air speed of 50 mph . it is designed and built to be rugged and consisting of redundant systems to further meet the faa 's required rules and regulations . surefly is our entry into the emerging vtol market . it is designed to be a two-person , 400-pound payload aircraft with a hybrid internal combustion/electric power generation system . our approach in the design is to build the safest and simplest way to fly rotary wing aircraft in the world . we believe it is a practical answer to personal flight , as well as , commercial transportation segments , including air taxi series , agriculture and beyond . the faa to-date has granted three separate workhorse inc. aerospace team an experimental airworthiness certifications , registered as n834lw , for the aircraft . these certifications come after an extensive design review and inspection of the aircraft with each renewed certificate . we continue to leverage our knowledge of high-voltage battery packs , electric motor controls , software and range extending generators to design a multicopter that can carry a pilot and passenger . 27 results of operations our condensed consolidated statement of operations data for the period presented follows : replace_table_token_3_th revenue sales for the years ended december 31 , 2017 and 2016 were $ 10.8 million and $ 6.4 million , respectively , were related to delivery of the production vehicles for ups and other customers . selling , general and administrative expenses selling , general and administrative ( “ sg & a ” ) expenses consist primarily of personnel and facilities costs related to our development including , marketing , sales , executive , finance , human resources , information technology and professional , legal and contract services . sg & a expenses during year ended december 31 , 2017 were $ 10.3 million , an increase from $ 6.2 million for the year ended december 31 , 2016. the increase in our sg & a expenses consisted primarily of employee salaries and benefits , consulting and investor relations , due to the increased activity in the period . story_separator_special_tag research and development expenses research and development ( “ r & d ” ) expenses consist primarily of personnel costs for our teams in engineering and research , prototyping expense , and contract and professional services . r & d expenses during the year ended december 31 , 2017 were $ 18.1 million , an increase from $ 6.1 million for the year ended december 31 , 2016. the r & d expenses consisted primarily in employee salaries and benefits , consulting and materials related to the start of the next generation delivery vehicles ( ngdvs ) , and pick-up truck projects and the manned multicopter . interest expenses our interest expense is incurred primarily from our mortgage on the 100 commerce drive , loveland , ohio property mentioned before in the long-term debt note to the financial statements . interest expenses during the year ended december 31 , 2017 were $ 180 thousand , an increase from $ 44 thousand for year ended december 31 , 2016. story_separator_special_tag style= `` vertical-align : top ; font : 10pt times new roman , times , serif `` > ● the costs and timing of obtaining , enforcing and defending our patent and other intellectual property rights ; and ● expenses associated with any unforeseen litigation . insufficient funds may require us to delay , scale back or eliminate some or all of our research or development programs , limit our sales activities , limit or cease production or negatively impact our operations . for the years ended december 31 , 2017 and 2016 , we maintained an investment portfolio primarily in money market funds , u. s. treasury bills , government-sponsored enterprise securities , and corporate bonds and commercial paper . cash in excess of immediate requirements is invested with regard to liquidity and capital preservation . wherever possible , we seek to minimize the potential effects of concentration and degrees of risk . we will continue to monitor the impact of the changes in the conditions of the credit and financial markets to our investment portfolio and assess if future changes in our investment strategy are necessary . summary of cash flows replace_table_token_4_th cash flows from operating activities our cash flows from operating activities are affected by our cash investments to support the business in research and development , manufacturing , selling , general and administration . our operating cash flows are also affected by our working capital needs to support fluctuations in inventory , personnel expenses , accounts payable and other current assets and liabilities . 29 during the year ended december 31 , 2017 and 2016 , cash used in operating activities was $ 38.7 million and $ 19.0 million , respectively . the decrease in operating cash flows in 2017 as compared to 2016 was mainly due to an increase in net losses . cash flows from investing activities cash flow from investing activities primarily relates to capital expenditures to support our future growth in operations . during the years ended december 31 , 2017 and 2016 , cash used by investing activities was $ 143 thousand and $ 528 thousand , respectively . the decrease in cash used by investing activities during the year is mainly due to reduced capital spending . cash flows from financing activities during the years ended december 31 , 2017 and 2016 , net cash provided by financing activities was $ 42.4 million and $ 12.4 million , respectively . cash flows from financing activities during the year ended december 31 , 2017 consisted mainly of $ 37.0 million of proceeds from the issuance of common stock and $ 4.8 million of senior secured notes as part of the initial efforts to spin-off surefly . credit facility presently we have no revolving credit facility established . there is no guarantee that we will be able to enter into an agreement to establish a line of credit or that if we do enter into such agreement that it will be on favorable terms . off-balance sheet arrangements the company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the company 's financial condition , changes in financial condition , revenues or expenses , results of operations , liquidity , capital expenditures or capital resources that are material to investors . federal tax credit qualification by the irs the company has been qualified by the irs for a vehicle federal tax credit of up to $ 7,500. the company joins a list of plug-in electric drive motor vehicle manufacturers , including ford motor company , general motors corporation , tesla , toyota , and 13 ev manufacturers in all , qualifying purchasers for up to a $ 7,500 tax credit when purchasing an electric vehicle . additionally , many states offer additional sales tax exemptions and zero emission tax credits of up to $ 5,000 that can also be applied to the purchase . california air resources board approval on february 20 , 2013 the california air resource board ( carb ) approved the company 's e-100 all-electric commercial truck for sale in the state of california . most other states use this approval for sale of vehicles in their state . 30 critical accounting policies and estimates the following accounting principles and practices of the company are set forth to facilitate the understanding of data presented in the consolidated financial statements : nature of operations we are a technology company focused on providing sustainable and cost-effective solutions to the commercial transportation sector . as an american manufacturer we design and build high performance battery-electric electric vehicles and aircraft that make movement of people and goods more efficient and less harmful to the environment . as part of our solution , we also develop cloud-based , real-time telematics performance monitoring systems that enable fleet operators to optimize energy and route efficiency . although we operate as a single unit through our

liquidity and capital resources cash requirements from inception , we have financed our operations primarily through sales of equity securities . we have utilized this capital to date in our research and development of five truck-based platforms ( i.e. , e-gen , e-100 , w-15 pickup truck , usps prototype and n-gen ) and two aviation platforms ( horsefly and surefly ) designing building and delivering our vehicles to our customer base and for working capital purposes . 28 as of december 31 , 2017 , we had approximately $ 4.1 million in cash , cash equivalents and short-term investments , as compared to approximately $ 0.5 million as of december 31 , 2016 , an increase of $ 3.6 million . the change was primarily attributable to increased financing activity . on january 10 , 2017 , the company entered into a securities purchase agreement with joseph t. lukens ( “ lukens ” ) providing for the sale by the company to lukens of a 6 % convertible debenture in the aggregate amount of $ 2,000,000 ( the “ lukens debenture ” ) in consideration of $ 2,000,000. the financing closed on january 10 , 2017. on january 27 , 2017 , the company and lukens entered into a conversion agreement pursuant to which lukens agreed to convert his outstanding 6 % convertible debenture in the principal amount of $ 2,000,000 plus interest into shares of common stock of the company at the offering price of the company 's public offering .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 requirements from inception , we have financed our operations primarily through sales of equity securities . we have utilized this capital to date in our research and development of five truck-based platforms ( i.e. , e-gen , e-100 , w-15 pickup truck , usps prototype and n-gen ) and two aviation platforms ( horsefly and surefly ) designing building and delivering our vehicles to our customer base and for working capital purposes . 28 as of december 31 , 2017 , we had approximately $ 4.1 million in cash , cash equivalents and short-term investments , as compared to approximately $ 0.5 million as of december 31 , 2016 , an increase of $ 3.6 million . the change was primarily attributable to increased financing activity . on january 10 , 2017 , the company entered into a securities purchase agreement with joseph t. lukens ( “ lukens ” ) providing for the sale by the company to lukens of a 6 % convertible debenture in the aggregate amount of $ 2,000,000 ( the “ lukens debenture ” ) in consideration of $ 2,000,000. the financing closed on january 10 , 2017. on january 27 , 2017 , the company and lukens entered into a conversion agreement pursuant to which lukens agreed to convert his outstanding 6 % convertible debenture in the principal amount of $ 2,000,000 plus interest into shares of common stock of the company at the offering price of the company 's public offering . ``` Suspicious Activity Report : in addition to improved fuel economy , we anticipate that the performance of our vehicles on-route will reduce long-term vehicle maintenance expense by approximately 50 % as compared to fossil-fueled trucks . in march of 2013 , we purchased the former workhorse custom chassis assembly plant in union city , indiana from navistar international ( nav : nyse ) . with this acquisition , we acquired the capability to be an original equipment manufacturer ( oem ) of class 3-6 commercial-grade , medium-duty truck chassis , to be marketed under the workhorse® brand . all workhorse last mile delivery vans are assembled in the union city assembly facility . from our development modeling and the existing performance of our electric vehicles on american roads , we estimate that our e-gen range-extended electric delivery vans will save over $ 150,000 in fuel and maintenance savings over the 20-year life of the vehicle . due to the positive return-on-investment , we place a premium price for our vehicles when selling to major fleet buyers . we expect that fleet buyers will be able to achieve a four-year or better return-on-investment ( without government incentives ) , which we believe justifies the higher acquisition cost of our vehicles . we believe that we are the only medium-duty battery-electric oem in the u.s. and we will be introducing additional light-duty electric and range-extended electric vehicles in late 2018 and 2019. our goal is to continue to increase sales and production , while executing on our cost-down strategy to a point that will enable us to achieve gross margin profitability of the last mile-delivery van platform . as a key strategy , we have begun development of the workhorse n-gen platform , which has been accelerated from our development efforts on the usps ngdv program . the workhorse n-gen electric cargo van platform will be available in multiple size configurations , 500 , 700 and 1,000 cubic feet . we intend to initiate the launch with the 500 cubic foot configuration where it is designed to compete with the sprinter , transit and ram gasoline/diesel trucks in the commercial sector with an emphasis on last-mile delivery and other service-oriented businesses , such as telecom . this ultra-low floor platform incorporates state-of-the-art safety features , economy and performance : we expect these vehicles to achieve a fuel economy of approximately 60 mpge , and offer fleet operators the most favorable total cost-of-ownership of any comparable vehicle available today . we believe we are the first american oem to market a u.s. built electric cargo van , and early indications of fleet interest are significant . we expect the n-gen trucks will be supported by our ryder systems partnership . as a direct result of the usps award and development efforts , workhorse has begun development on the workhorse w-15 , a medium- and light-duty pickup truck platform aimed at commercial fleets . the w-15 pickup truck powertrain is a smaller version of its sister vehicle , the medium-duty battery electric powertrain , and will have two purpose-built variants , a w-15 work truck ( pickup ) and an n-gen cargo van . either of these two variants will appeal to delivery fleets , utility companies , telecom companies , municipalities and more . our horsefly delivery drone is a custom designed , purpose-built drone that is fully integrated in our electric trucks . horsefly is an octocopter designed with a maximum gross weight of 30 lbs . , a 10 lb . payload and a maximum air speed of 50 mph . it is designed and built to be rugged and consisting of redundant systems to further meet the faa 's required rules and regulations . surefly is our entry into the emerging vtol market . it is designed to be a two-person , 400-pound payload aircraft with a hybrid internal combustion/electric power generation system . our approach in the design is to build the safest and simplest way to fly rotary wing aircraft in the world . we believe it is a practical answer to personal flight , as well as , commercial transportation segments , including air taxi series , agriculture and beyond . the faa to-date has granted three separate workhorse inc. aerospace team an experimental airworthiness certifications , registered as n834lw , for the aircraft . these certifications come after an extensive design review and inspection of the aircraft with each renewed certificate . we continue to leverage our knowledge of high-voltage battery packs , electric motor controls , software and range extending generators to design a multicopter that can carry a pilot and passenger . 27 results of operations our condensed consolidated statement of operations data for the period presented follows : replace_table_token_3_th revenue sales for the years ended december 31 , 2017 and 2016 were $ 10.8 million and $ 6.4 million , respectively , were related to delivery of the production vehicles for ups and other customers . selling , general and administrative expenses selling , general and administrative ( “ sg & a ” ) expenses consist primarily of personnel and facilities costs related to our development including , marketing , sales , executive , finance , human resources , information technology and professional , legal and contract services . sg & a expenses during year ended december 31 , 2017 were $ 10.3 million , an increase from $ 6.2 million for the year ended december 31 , 2016. the increase in our sg & a expenses consisted primarily of employee salaries and benefits , consulting and investor relations , due to the increased activity in the period . story_separator_special_tag research and development expenses research and development ( “ r & d ” ) expenses consist primarily of personnel costs for our teams in engineering and research , prototyping expense , and contract and professional services . r & d expenses during the year ended december 31 , 2017 were $ 18.1 million , an increase from $ 6.1 million for the year ended december 31 , 2016. the r & d expenses consisted primarily in employee salaries and benefits , consulting and materials related to the start of the next generation delivery vehicles ( ngdvs ) , and pick-up truck projects and the manned multicopter . interest expenses our interest expense is incurred primarily from our mortgage on the 100 commerce drive , loveland , ohio property mentioned before in the long-term debt note to the financial statements . interest expenses during the year ended december 31 , 2017 were $ 180 thousand , an increase from $ 44 thousand for year ended december 31 , 2016. story_separator_special_tag style= `` vertical-align : top ; font : 10pt times new roman , times , serif `` > ● the costs and timing of obtaining , enforcing and defending our patent and other intellectual property rights ; and ● expenses associated with any unforeseen litigation . insufficient funds may require us to delay , scale back or eliminate some or all of our research or development programs , limit our sales activities , limit or cease production or negatively impact our operations . for the years ended december 31 , 2017 and 2016 , we maintained an investment portfolio primarily in money market funds , u. s. treasury bills , government-sponsored enterprise securities , and corporate bonds and commercial paper . cash in excess of immediate requirements is invested with regard to liquidity and capital preservation . wherever possible , we seek to minimize the potential effects of concentration and degrees of risk . we will continue to monitor the impact of the changes in the conditions of the credit and financial markets to our investment portfolio and assess if future changes in our investment strategy are necessary . summary of cash flows replace_table_token_4_th cash flows from operating activities our cash flows from operating activities are affected by our cash investments to support the business in research and development , manufacturing , selling , general and administration . our operating cash flows are also affected by our working capital needs to support fluctuations in inventory , personnel expenses , accounts payable and other current assets and liabilities . 29 during the year ended december 31 , 2017 and 2016 , cash used in operating activities was $ 38.7 million and $ 19.0 million , respectively . the decrease in operating cash flows in 2017 as compared to 2016 was mainly due to an increase in net losses . cash flows from investing activities cash flow from investing activities primarily relates to capital expenditures to support our future growth in operations . during the years ended december 31 , 2017 and 2016 , cash used by investing activities was $ 143 thousand and $ 528 thousand , respectively . the decrease in cash used by investing activities during the year is mainly due to reduced capital spending . cash flows from financing activities during the years ended december 31 , 2017 and 2016 , net cash provided by financing activities was $ 42.4 million and $ 12.4 million , respectively . cash flows from financing activities during the year ended december 31 , 2017 consisted mainly of $ 37.0 million of proceeds from the issuance of common stock and $ 4.8 million of senior secured notes as part of the initial efforts to spin-off surefly . credit facility presently we have no revolving credit facility established . there is no guarantee that we will be able to enter into an agreement to establish a line of credit or that if we do enter into such agreement that it will be on favorable terms . off-balance sheet arrangements the company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the company 's financial condition , changes in financial condition , revenues or expenses , results of operations , liquidity , capital expenditures or capital resources that are material to investors . federal tax credit qualification by the irs the company has been qualified by the irs for a vehicle federal tax credit of up to $ 7,500. the company joins a list of plug-in electric drive motor vehicle manufacturers , including ford motor company , general motors corporation , tesla , toyota , and 13 ev manufacturers in all , qualifying purchasers for up to a $ 7,500 tax credit when purchasing an electric vehicle . additionally , many states offer additional sales tax exemptions and zero emission tax credits of up to $ 5,000 that can also be applied to the purchase . california air resources board approval on february 20 , 2013 the california air resource board ( carb ) approved the company 's e-100 all-electric commercial truck for sale in the state of california . most other states use this approval for sale of vehicles in their state . 30 critical accounting policies and estimates the following accounting principles and practices of the company are set forth to facilitate the understanding of data presented in the consolidated financial statements : nature of operations we are a technology company focused on providing sustainable and cost-effective solutions to the commercial transportation sector . as an american manufacturer we design and build high performance battery-electric electric vehicles and aircraft that make movement of people and goods more efficient and less harmful to the environment . as part of our solution , we also develop cloud-based , real-time telematics performance monitoring systems that enable fleet operators to optimize energy and route efficiency . although we operate as a single unit through our

the phase 1b segment of the trial was designed to confirm the trilaciclib dose to be used in the randomized , placebo-controlled phase 2a segment of the trial . the goals of the trial are to evaluate the safety , myelopreservation , pk , and anti-tumor activity of trilaciclib in combination with the existing second/third-line chemotherapy standard of care regimen of topotecan and to confirm the dose to be used in future trials . all patients in the phase 1b segment were administered three-week cycles of trilaciclib plus topotecan until the progression of disease . trilaciclib was administered as an iv infusion prior to every dose of topotecan . trilaciclib doses of 200 to 280 mg/m 2 and topotecan doses of 0.75 to 1.5 mg/m 2 were tested across 7 cohorts in the completed phase 1b open-label segment of the trial . upon completion of the phase 1b segment of the trial , the doses chosen for the randomized , placebo-controlled phase 2a segment of this trial are trilaciclib 240 mg/m 2 + topotecan 0.75 mg/m 2 and trilaciclib 240 mg/m 2 + topotecan 1.5 mg/m 2 . in the phase 1b segment we treated 32 patients with trilaciclib and topotecan without any episodes of febrile neutropenia or treatment related saes . preliminary results from the phase 1b were reported at the iasclc world conference on lung cancer in december 2016 , and based on these results the phase 2a segment of the trial was initiated in the first quarter of 2017 and consists of a double blind-design with approximately 90 patients randomized on a 2:1 basis to receive trilaciclib plus topotecan , or placebo plus topotecan . we plan to complete enrollment in this trial in the second quarter of 2018. we expect to update the data from the phase 1b segment of the trial and to report preliminary data from the phase 2a segment of the trial in the fourth quarter of 2018. ongoing phase 2 clinical trial in triple negative breast cancer ( tnbc ) in january 2017 , we initiated an open label , randomized , phase 2 trial that is expected to enroll approximately 90 patients with first , second or third-line metastatic tnbc across multiple sites in the united states and europe . the goals of the clinical trial are to evaluate the safety , myelopreservation , pk , and anti-tumor activity of trilaciclib in combination with the existing chemotherapy standard of care regimen of gemcitabine and carboplatin . we expect to fully enroll this trial in the second-quarter of 2018 and report preliminary data in the fourth-quarter of 2018. ongoing phase 2 clinical trial in first-line treatment of sclc with a checkpoint inhibitor in december 2016 , we entered into a non-exclusive agreement with genentech to evaluate the combination of genentech 's immune checkpoint , anti-pd-l1 antibody tecentriq with trilaciclib . our first trial under the agreement is in first-line treatment for patients with extensive stage sclc receiving carboplatin and etoposide . we initiated enrollment in this randomized , double-blinded , placebo-controlled phase 2 trial in the second quarter of 2017. the goals of the clinical trial are to evaluate the safety , overall survival , myelopreservation , pk , and anti-tumor activity of trilaciclib in combination with a checkpoint inhibitor tecentriq and chemotherapy . we completed enrollment in the first quarter of 2018. g1t38 : our potential best-in-class cdk4/6 inhibitor for patients with cdk4/6-dependent tumors g1t38 , our second clinical-stage candidate , is a potential best-in-class oral cdk4/6 inhibitor , to be used in combination with other targeted therapies to treat multiple cancers . we rationally designed g1t38 to improve upon and address the shortcomings of the approved cdk4/6 inhibitors ibrance® , kisqali® and verzenio® . our preclinical data and early human clinical data indicate the potential for continuous daily dosing , less dose-limiting neutropenia , and improved tolerability . a phase 1 trial of g1t38 in 75 healthy volunteers showed a favorable safety profile , and we initiated a phase 1b/2a trial in er+ , her2- breast cancer in january 2017. our plans for g1t38 include combinations in other cancers , such as non-small cell lung cancer , or nsclc , where we expect to begin a phase 1b/2 trial in march 2018 in combination with the epidermal growth factor receptor ( egfr ) inhibitor , tagrisso® . we believe that g1t38 has the potential to be the backbone therapy of multiple combination targeted therapy regimens . 54 completed phase 1 clinical trial in the fourth quarter of 2016 , we completed a phase 1 clinical trial of g1t38 in 75 healthy volunteers in the netherlands . this was a single ascending dose , placebo-controlled trial testing doses of 3 to 600 mg. in addition , g1t38 was dosed at 200 and 300 mg twice a day , 300 mg with and without food , and 300 mg as an oral solution . the goals of the clinical trial were to obtain pk and safety data to inform appropriate starting dose ( s ) for studies in patients . there were no dlts , saes , or grade 3/4 aes reported in this study . the most common grade 1/2 aes were gastrointestinal in nature ( such as diarrhea , nausea or vomiting ) . a fed/fasted cohort demonstrated that taking g1t38 after a meal did not result in any nausea and that food had no effect on pk . therefore , we plan to dose g1t38 with food in all upcoming studies . ongoing phase 1b/2a clinical trial in er+ , her2- breast cancer in january 2017 , we initiated a phase 1b/2a trial in er+ , her2- breast cancer patients in combination with faslodex® , an fda-approved serd . the trial is expected to enroll up to 100 patients in europe . story_separator_special_tag this free-standing instrument was exercised on december 10 , 2015 when the right to require the purchase of the second tranche shares by the holders of the outstanding shares of series b preferred stock was exercised , resulting in an outstanding liability of zero on december 31 , 2017 and 2016. stock-based compensation we account for stock-based compensation awards in accordance with financial accounting standards board ( fasb ) accounting standards codification ( asc ) topic 718 , compensation—stock compensation , or asc 718. asc 718 requires all stock-based 58 payments to employees , including grants of employee stock options , to be recognized in the statement of operations based on their fair values . our stock-based compensation awards have historically consisted of stock options . we recognize compensation costs related to stock options granted to employees based on the estimated fair value of the awards on the date of grant , net of estimated forfeitures . we estimate the grant date fair value , and the resulting stock-based compensation expense , using the black-scholes option-pricing model . the grant date fair value of the stock-based awards is generally recognized on a straight-line basis over the requisite service period , which is generally the vesting period of the respective awards . we recognize compensation costs related to stock options granted to non-employees based on the estimated fair value of the awards on the date of grant in the same manner as we do options for employees ; however , the fair value of the stock options granted to non-employees is re-measured each reporting period until the service is complete , and the resulting increase or decrease in value , if any , is recognized as expense or income , respectively , during the period the related services are rendered . we recorded non-cash stock-based compensation expense for employee and non-employee stock option grants of $ 3.4 million , $ 1.4 million and $ 0.4 million for the years ended december 31 , 2017 , 2016 and 2015 , respectively . we calculate the fair value of stock options using the black-scholes option-pricing model . the black-scholes option-pricing model requires the use of subjective assumptions , including the expected volatility of our common stock , the assumed dividend yield , the expected term of our stock options , the risk-free interest rate for a period that approximates the expected term of our stock options , and the fair value of the underlying common stock on the date of grant . in applying these assumptions , we considered the following factors : we do not have sufficient history to estimate the volatility of our common stock ; we calculate expected volatility based on reported data for selected similar publicly traded companies for which the historical information is available ; we plan to continue to use the guideline peer group volatility information until the historical volatility of our common stock is sufficient to measure expected volatility for future option grants ; the assumed dividend yield of zero is based on our expectation of not paying dividends for the foreseeable future ; our estimates of expected term used in the black-scholes option-pricing model were based on the estimated time from the grant date to the date of exercise ; we determine the risk-free interest rate by reference to implied yields available from u.s. treasury securities with a remaining term equal to the expected life assumed at the date of grant ; and we estimate forfeitures based on our historical analysis of actual stock option forfeitures . to date , we have had minimal forfeitures , accordingly , we have assumed no forfeiture rate . see “ note 8 – stock option plan ” to the accompanying audited financial statements included in item 15 of this annual report for the weighted average assumptions used in the black-scholes option-pricing model for awards granted in the years ended december 31 , 2017 , 2016 and 2015. prior to our initial public offering , the fair value of our common shares underlying our stock options was estimated on each grant date by our board of directors . in order to determine the fair value of our common shares underlying granted stock options , our board of directors considered , among other things , timely valuations of our common shares prepared by an unrelated third-party valuation firm in accordance with the guidance provided by the american institute of certified public accountants practice guide , valuation of privately-held-company equity securities issued as compensation . given the absence of a public trading market for our common shares , our board of directors exercised reasonable judgment and considered a number of objective and subjective factors to determine the best estimate of the fair value of our common shares , including ( 1 ) our business , financial condition and results of operations , including related industry trends affecting our operations ; ( 2 ) our forecasted operating performance and projected future cash flows ; ( 3 ) the illiquid nature of our common shares ; ( 4 ) liquidation preferences and other rights and privileges of our common shares ; ( 5 ) market multiples of our most comparable public peers and ( 6 ) market conditions affecting our industry . in connection with our 2015 audit , we reassessed the determination of the fair value of the common shares underlying 1,607,119 stock options granted throughout 2015. as a result , we determined that the fair value of the common shares in 2015 increased from $ 0.30 per common share at january 31 , 2015 to $ 3.72 per common share at december 31 , 2015 , which was higher than the fair value per share as initially determined by the board of directors on the respective grant dates of february 27 , 2015 , july 15 , 2015 and september 7 , 2015. the use of this higher share price increased both recognized and unrecognized share-based compensation expense . 59 in

liquidity and capital resources we have incurred significant operating losses since our inception . we incurred net losses of $ 60.1 million for the year ended december 31 , 2017 , $ 30.3 million for the year ended december 31 , 2016 , and $ 20.3 million for the year ended december 31 , 2015. as of december 31 , 2017 , we had an accumulated deficit of $ 129.1 million . our product candidates span a range from preclinical development to phase 2 clinical trials , and it may be several years , if ever , before we have a product candidate ready for commercialization . to date , we have financed our operations primarily through sales of our preferred and common stock . we expect to continue to incur significant expenses and increasing operating losses for the foreseeable future . as of december 31 , 2017 , we had cash , cash equivalents and short-term investments of $ 103.8 million . we believe that our existing cash and cash equivalents will be sufficient to fund our projected cash needs for greater than 12 months following the filing of this annual report . in order to complete the process of obtaining regulatory approval for our product candidates and to build the sales , marketing and distribution infrastructure that we believe will be necessary to commercialize our product candidates , if approved , we will require substantial additional funding .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources we have incurred significant operating losses since our inception . we incurred net losses of $ 60.1 million for the year ended december 31 , 2017 , $ 30.3 million for the year ended december 31 , 2016 , and $ 20.3 million for the year ended december 31 , 2015. as of december 31 , 2017 , we had an accumulated deficit of $ 129.1 million . our product candidates span a range from preclinical development to phase 2 clinical trials , and it may be several years , if ever , before we have a product candidate ready for commercialization . to date , we have financed our operations primarily through sales of our preferred and common stock . we expect to continue to incur significant expenses and increasing operating losses for the foreseeable future . as of december 31 , 2017 , we had cash , cash equivalents and short-term investments of $ 103.8 million . we believe that our existing cash and cash equivalents will be sufficient to fund our projected cash needs for greater than 12 months following the filing of this annual report . in order to complete the process of obtaining regulatory approval for our product candidates and to build the sales , marketing and distribution infrastructure that we believe will be necessary to commercialize our product candidates , if approved , we will require substantial additional funding . ``` Suspicious Activity Report : the phase 1b segment of the trial was designed to confirm the trilaciclib dose to be used in the randomized , placebo-controlled phase 2a segment of the trial . the goals of the trial are to evaluate the safety , myelopreservation , pk , and anti-tumor activity of trilaciclib in combination with the existing second/third-line chemotherapy standard of care regimen of topotecan and to confirm the dose to be used in future trials . all patients in the phase 1b segment were administered three-week cycles of trilaciclib plus topotecan until the progression of disease . trilaciclib was administered as an iv infusion prior to every dose of topotecan . trilaciclib doses of 200 to 280 mg/m 2 and topotecan doses of 0.75 to 1.5 mg/m 2 were tested across 7 cohorts in the completed phase 1b open-label segment of the trial . upon completion of the phase 1b segment of the trial , the doses chosen for the randomized , placebo-controlled phase 2a segment of this trial are trilaciclib 240 mg/m 2 + topotecan 0.75 mg/m 2 and trilaciclib 240 mg/m 2 + topotecan 1.5 mg/m 2 . in the phase 1b segment we treated 32 patients with trilaciclib and topotecan without any episodes of febrile neutropenia or treatment related saes . preliminary results from the phase 1b were reported at the iasclc world conference on lung cancer in december 2016 , and based on these results the phase 2a segment of the trial was initiated in the first quarter of 2017 and consists of a double blind-design with approximately 90 patients randomized on a 2:1 basis to receive trilaciclib plus topotecan , or placebo plus topotecan . we plan to complete enrollment in this trial in the second quarter of 2018. we expect to update the data from the phase 1b segment of the trial and to report preliminary data from the phase 2a segment of the trial in the fourth quarter of 2018. ongoing phase 2 clinical trial in triple negative breast cancer ( tnbc ) in january 2017 , we initiated an open label , randomized , phase 2 trial that is expected to enroll approximately 90 patients with first , second or third-line metastatic tnbc across multiple sites in the united states and europe . the goals of the clinical trial are to evaluate the safety , myelopreservation , pk , and anti-tumor activity of trilaciclib in combination with the existing chemotherapy standard of care regimen of gemcitabine and carboplatin . we expect to fully enroll this trial in the second-quarter of 2018 and report preliminary data in the fourth-quarter of 2018. ongoing phase 2 clinical trial in first-line treatment of sclc with a checkpoint inhibitor in december 2016 , we entered into a non-exclusive agreement with genentech to evaluate the combination of genentech 's immune checkpoint , anti-pd-l1 antibody tecentriq with trilaciclib . our first trial under the agreement is in first-line treatment for patients with extensive stage sclc receiving carboplatin and etoposide . we initiated enrollment in this randomized , double-blinded , placebo-controlled phase 2 trial in the second quarter of 2017. the goals of the clinical trial are to evaluate the safety , overall survival , myelopreservation , pk , and anti-tumor activity of trilaciclib in combination with a checkpoint inhibitor tecentriq and chemotherapy . we completed enrollment in the first quarter of 2018. g1t38 : our potential best-in-class cdk4/6 inhibitor for patients with cdk4/6-dependent tumors g1t38 , our second clinical-stage candidate , is a potential best-in-class oral cdk4/6 inhibitor , to be used in combination with other targeted therapies to treat multiple cancers . we rationally designed g1t38 to improve upon and address the shortcomings of the approved cdk4/6 inhibitors ibrance® , kisqali® and verzenio® . our preclinical data and early human clinical data indicate the potential for continuous daily dosing , less dose-limiting neutropenia , and improved tolerability . a phase 1 trial of g1t38 in 75 healthy volunteers showed a favorable safety profile , and we initiated a phase 1b/2a trial in er+ , her2- breast cancer in january 2017. our plans for g1t38 include combinations in other cancers , such as non-small cell lung cancer , or nsclc , where we expect to begin a phase 1b/2 trial in march 2018 in combination with the epidermal growth factor receptor ( egfr ) inhibitor , tagrisso® . we believe that g1t38 has the potential to be the backbone therapy of multiple combination targeted therapy regimens . 54 completed phase 1 clinical trial in the fourth quarter of 2016 , we completed a phase 1 clinical trial of g1t38 in 75 healthy volunteers in the netherlands . this was a single ascending dose , placebo-controlled trial testing doses of 3 to 600 mg. in addition , g1t38 was dosed at 200 and 300 mg twice a day , 300 mg with and without food , and 300 mg as an oral solution . the goals of the clinical trial were to obtain pk and safety data to inform appropriate starting dose ( s ) for studies in patients . there were no dlts , saes , or grade 3/4 aes reported in this study . the most common grade 1/2 aes were gastrointestinal in nature ( such as diarrhea , nausea or vomiting ) . a fed/fasted cohort demonstrated that taking g1t38 after a meal did not result in any nausea and that food had no effect on pk . therefore , we plan to dose g1t38 with food in all upcoming studies . ongoing phase 1b/2a clinical trial in er+ , her2- breast cancer in january 2017 , we initiated a phase 1b/2a trial in er+ , her2- breast cancer patients in combination with faslodex® , an fda-approved serd . the trial is expected to enroll up to 100 patients in europe . story_separator_special_tag this free-standing instrument was exercised on december 10 , 2015 when the right to require the purchase of the second tranche shares by the holders of the outstanding shares of series b preferred stock was exercised , resulting in an outstanding liability of zero on december 31 , 2017 and 2016. stock-based compensation we account for stock-based compensation awards in accordance with financial accounting standards board ( fasb ) accounting standards codification ( asc ) topic 718 , compensation—stock compensation , or asc 718. asc 718 requires all stock-based 58 payments to employees , including grants of employee stock options , to be recognized in the statement of operations based on their fair values . our stock-based compensation awards have historically consisted of stock options . we recognize compensation costs related to stock options granted to employees based on the estimated fair value of the awards on the date of grant , net of estimated forfeitures . we estimate the grant date fair value , and the resulting stock-based compensation expense , using the black-scholes option-pricing model . the grant date fair value of the stock-based awards is generally recognized on a straight-line basis over the requisite service period , which is generally the vesting period of the respective awards . we recognize compensation costs related to stock options granted to non-employees based on the estimated fair value of the awards on the date of grant in the same manner as we do options for employees ; however , the fair value of the stock options granted to non-employees is re-measured each reporting period until the service is complete , and the resulting increase or decrease in value , if any , is recognized as expense or income , respectively , during the period the related services are rendered . we recorded non-cash stock-based compensation expense for employee and non-employee stock option grants of $ 3.4 million , $ 1.4 million and $ 0.4 million for the years ended december 31 , 2017 , 2016 and 2015 , respectively . we calculate the fair value of stock options using the black-scholes option-pricing model . the black-scholes option-pricing model requires the use of subjective assumptions , including the expected volatility of our common stock , the assumed dividend yield , the expected term of our stock options , the risk-free interest rate for a period that approximates the expected term of our stock options , and the fair value of the underlying common stock on the date of grant . in applying these assumptions , we considered the following factors : we do not have sufficient history to estimate the volatility of our common stock ; we calculate expected volatility based on reported data for selected similar publicly traded companies for which the historical information is available ; we plan to continue to use the guideline peer group volatility information until the historical volatility of our common stock is sufficient to measure expected volatility for future option grants ; the assumed dividend yield of zero is based on our expectation of not paying dividends for the foreseeable future ; our estimates of expected term used in the black-scholes option-pricing model were based on the estimated time from the grant date to the date of exercise ; we determine the risk-free interest rate by reference to implied yields available from u.s. treasury securities with a remaining term equal to the expected life assumed at the date of grant ; and we estimate forfeitures based on our historical analysis of actual stock option forfeitures . to date , we have had minimal forfeitures , accordingly , we have assumed no forfeiture rate . see “ note 8 – stock option plan ” to the accompanying audited financial statements included in item 15 of this annual report for the weighted average assumptions used in the black-scholes option-pricing model for awards granted in the years ended december 31 , 2017 , 2016 and 2015. prior to our initial public offering , the fair value of our common shares underlying our stock options was estimated on each grant date by our board of directors . in order to determine the fair value of our common shares underlying granted stock options , our board of directors considered , among other things , timely valuations of our common shares prepared by an unrelated third-party valuation firm in accordance with the guidance provided by the american institute of certified public accountants practice guide , valuation of privately-held-company equity securities issued as compensation . given the absence of a public trading market for our common shares , our board of directors exercised reasonable judgment and considered a number of objective and subjective factors to determine the best estimate of the fair value of our common shares , including ( 1 ) our business , financial condition and results of operations , including related industry trends affecting our operations ; ( 2 ) our forecasted operating performance and projected future cash flows ; ( 3 ) the illiquid nature of our common shares ; ( 4 ) liquidation preferences and other rights and privileges of our common shares ; ( 5 ) market multiples of our most comparable public peers and ( 6 ) market conditions affecting our industry . in connection with our 2015 audit , we reassessed the determination of the fair value of the common shares underlying 1,607,119 stock options granted throughout 2015. as a result , we determined that the fair value of the common shares in 2015 increased from $ 0.30 per common share at january 31 , 2015 to $ 3.72 per common share at december 31 , 2015 , which was higher than the fair value per share as initially determined by the board of directors on the respective grant dates of february 27 , 2015 , july 15 , 2015 and september 7 , 2015. the use of this higher share price increased both recognized and unrecognized share-based compensation expense . 59 in

we finance the purchase of aircraft and our business with available cash balances , internally generated funds , including through aircraft sales and trading activities and debt financings . our debt financing strategy is focused on raising unsecured debt in the global bank and debt capital markets , with a limited utilization of government guaranteed export credit or other forms of secured financing . in 2019 , we issued approximately $ 3.2 billion in senior unsecured notes bearing interest at fixed rates ranging from 2.25 % to 4.25 % with one note bearing interest at a floating rate of three-month libor plus 0.67 % , with maturities ranging from 2021 to 2029. in addition , we increased our unsecured revolving credit facility capacity to approximately $ 5.8 billion , representing a 27.9 % increase from 2018 and extended the final maturity date to may 5 , 2023 bearing interest at a floating rate of libor plus 1.05 % . we ended 2019 with total 49 debt outstanding , net of discounts and issuance costs , of $ 13.6 billion , of which 88.4 % was at a fixed rate and 96.6 % of which was unsecured . as of december 31 , 2019 , our composite cost of funds was 3.34 % . in 2019 , total revenues increased by 20.1 % to $ 2.0 billion , compared to 2018. the increase in our total revenues is primarily due to the $ 3.0 billion increase in the net book value of our operating lease portfolio and an increase in our aircraft sales , trading and other activity . during the year ended december 31 , 2019 , our net income available to common stockholders was $ 575.2 million compared to $ 510.8 million for the year ended december 31 , 2018. our diluted earnings per share for the full year 2019 was $ 5.09 compared to $ 4.60 for the full year 2018. the increase in net income available to common stockholders in 2019 as compared to 2018 was primarily due to the continued growth of our fleet and an increase in our aircraft sales , trading and other activity , partially offset by increases in our interest expense and selling , general and administrative expenses . our adjusted net income before income taxes excludes the effects of certain non-cash items , one-time or non-recurring items that are not expected to continue in the future and certain other items . our adjusted net income before income taxes for the year ended december 31 , 2019 was $ 781.2 million or $ 6.91 per diluted share , compared to $ 690.3 million , or $ 6.20 per diluted share for the year ended december 31 , 2018. the increase in our adjusted net income before income taxes was principally driven by the continued growth of our fleet and an increase in our aircraft sales , trading and other activity , partially offset by increases in our interest expense and selling , general and administrative expenses . adjusted net income before income taxes and adjusted diluted earnings per share before income taxes are measures of financial and operational performance that are not defined by u.s. generally accepted accounting principles ( “ gaap ” ) . see note 3 in “ item 6. selected financial data ” of this annual report on form 10-k for a discussion of adjusted net income before income taxes and adjusted diluted earnings per share before income taxes as non-gaap measures and a reconciliation of these measures to net income available to common stockholders . our fleet we have continued to build one of the world 's youngest operating lease portfolios , including some of the most fuel-efficient commercial jet transport aircraft . our fleet , based on net book value , increased by 19.1 % , to $ 18.7 billion as of december 31 , 2019 , compared to $ 15.7 billion as of december 31 , 2018. during the year ended december 31 , 2019 , we took delivery of 53 aircraft from our new order pipeline , purchased two incremental aircraft in the secondary market and sold 30 aircraft and transferred eight aircraft from our operating lease portfolio to flight equipment held for sale , which is included in other assets on the consolidated balance sheet , ending the year with a total of 292 aircraft in our operating lease portfolio . the weighted average fleet age and weighted average remaining lease term of our operating lease portfolio as of december 31 , 2019 were 3.5 years and 7.2 years , respectively . we also managed 83 aircraft as of december 31 , 2019 . ​ 50 portfolio metrics of our fleet as of december 31 , 2019 and 2018 are as follows : replace_table_token_13_th ( 1 ) weighted-average fleet age and remaining lease term calculated based on net book value of our operating lease portfolio . ( 2 ) as of december 31 , 2019 , we transferred eight aircraft to flight equipment held for sale which is included in other assets on the consolidated balance sheet . all of these aircraft are excluded from the owned fleet count and included in our managed fleet count . ( 3 ) as of december 31 , 2019 , we had options to acquire up to 45 boeing 737-8 max aircraft and up to 25 airbus a220 aircraft . as of december 31 , 2018 , we had options to acquire up to five airbus a350-1000 aircraft and 45 boeing 737-8 max aircraft . story_separator_special_tag these events of default are subject to a number of important exceptions and qualifications set forth in the purchase agreements . unsecured term financings from time to time , we enter into unsecured term facilities . during 2019 , we entered into three unsecured term facilities aggregating $ 205.0 million comprised of ( i ) a $ 80.0 million term facility with a term of one year and bearing interest at a floating rate of libor plus 1.00 % ; ( ii ) a $ 75.0 million term facility with a term of three years and bearing interest at a floating rate of three-month libor plus 1.00 % ; ( iii ) a $ 50.0 million term facility with a term of one year and bearing interest at a floating rate of libor plus 1.00 % . during 2019 , we also entered into agreements to increase ( a ) our $ 518.0 million term facility by $ 82.0 million to an aggregate principal amount of $ 600.0 million , with a term of four years and bearing interest at a floating rate of libor plus 1.125 % and ( b ) our $ 5.4 million term facility by $ 19.6 million to an aggregate principal amount of $ 25.0 million with the term of such facility extended four years and bearing interest at a fixed rate of 3.00 % . the outstanding balance on our unsecured term facilities as of december 31 , 2019 was $ 883.1 million , bearing interest at fixed rates ranging from 2.75 % to 3.50 % and five facilities bearing interest at floating rates ranging from libor plus 0.95 % to libor plus 1.125 % . as of december 31 , 2019 , the remaining maturities of all unsecured term facilities ranged from approximately 0.09 years to approximately 4.75 years . as of december 31 , 2018 , the outstanding balance on our unsecured term facilities was $ 607.3 million . unsecured revolving credit facilities we have a senior unsecured revolving credit facility governed by a second amended and restated credit agreement , dated may 5 , 2014 ( as amended , modified and supplemented thereafter ) , with jp morgan chase bank , n.a . , as administrative agent , and the lenders from time to time party thereto . as of december 31 , 2019 , the unsecured revolving credit facility provides us with financing capacity of up to $ 5.8 billion subject to the terms and conditions set forth therein . lenders hold revolving commitments totaling approximately $ 5.5 billion that mature on may 5 , 2023 , commitments totaling $ 245.0 million that mature on may 5 , 2022 , commitments totaling $ 5.0 million that mature on may 5 , 2021 , and commitments totaling $ 92.7 million that mature on may 5 , 2020. as of december 31 , 2019 , borrowings under the unsecured revolving credit facility will generally bear interest at either ( i ) libor plus a margin of 1.05 % per year or ( ii ) an alternative base rate plus a margin of 0.05 % per year , subject , in each case , to increases or decreases based on declines in the credit ratings for our debt . we are required to pay a facility fee of 0.20 % per year ( also subject to increases or decreases based on declines in the credit ratings for our debt ) in respect of total commitments under the unsecured revolving credit facility . borrowings under the unsecured revolving credit facility are used to finance our working capital needs in the ordinary course of business and for other general corporate purposes . the total amount outstanding under our unsecured revolving credit facility was $ 20.0 million and $ 602.0 million as of december 31 , 2019 and december 31 , 2018 , respectively . the unsecured revolving credit facility provides for certain covenants , including covenants that limit our subsidiaries ' ability to incur , create , or assume certain unsecured indebtedness , and our subsidiaries ' abilities to engage 58 in certain mergers , consolidations , and asset sales . the unsecured revolving credit facility also requires us to comply with certain financial maintenance covenants ( measured at the end of each fiscal quarter ) including a maximum consolidated leverage ratio , minimum consolidated shareholders ' equity , and minimum consolidated unencumbered assets , as well as an interest coverage test that will be suspended when the unsecured revolving credit facility or certain of our other indebtedness is rated investment grade ( as defined in the unsecured revolving credit facility ) . as of december 31 , 2019 , such investment grade rating as defined in the unsecured revolving credit facility was achieved . we believe , as of december 31 , 2019 , we were in compliance in all material respects with all covenants contained in our unsecured revolving credit facility . in addition , the unsecured revolving credit facility contains customary events of default . in the case of an event of default , the lenders may terminate the commitments under the unsecured revolving credit facility and require immediate repayment of all outstanding borrowings and the cash collateralization of all outstanding letters of credit . such termination and acceleration will occur automatically in the event of certain bankruptcy events . these provisions are subject to a number of important exceptions and qualifications set forth in the credit agreement governing the unsecured revolving credit facility . during the year ended december 31 , 2019 , we entered into an uncommitted unsecured revolving credit facility with a total borrowing capacity of $ 175.0 million and a maturity date of october 18 , 2020 , bearing interest at a rate of libor plus 0.75 % . as of december 31 , 2019 , there were no outstanding amounts related to the uncommitted unsecured revolving credit facility . in january 2020 , we entered into an

liquidity and capital resources overview we finance the purchase of aircraft and our business with available cash balances , internally generated funds , including through aircraft sales and trading activity , and debt financings . we have structured ourselves with the goal to maintain investment-grade credit metrics and our debt financing strategy has focused on funding our business on an unsecured basis . unsecured financing provides us with operational flexibility when selling or transitioning aircraft from one airline to another . we ended 2019 with total debt outstanding , net of discounts and issuance costs , of $ 13.6 billion compared to $ 11.5 billion in 2018. our unsecured debt outstanding increased to $ 13.3 billion as of december 31 , 2019 from $ 11.3 billion as of december 31 , 2018. our unsecured debt as a percentage of total debt increased to 96.6 % as of december 31 , 2019 from 96.5 % as of december 31 , 2018. we increased our cash flows from operations by 11.0 % or $ 138.4 million to $ 1.4 billion in 2019 , as compared to $ 1.3 billion in 2018. our cash flows from operations increased primarily because of the continued growth of our fleet . our cash flow used in investing activities was $ 3.8 billion for the year ended december 31 , 2019 , which resulted primarily from the purchase of aircraft , partially offset by proceeds from our aircraft sales and trading activity . our cash flow provided by financing activities was $ 2.5 billion for the year ended december 31 , 2019 , which resulted primarily from the net proceeds received from the issuance of our unsecured notes and the issuance of preferred stock in 2019 , partially offset by the repayment of outstanding debt . we ended 2019 with available liquidity of $ 6.3 billion which is comprised of unrestricted cash of $ 317.5 million and undrawn balances under our unsecured revolving credit facilities of $ 6.0 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. ```liquidity and capital resources overview we finance the purchase of aircraft and our business with available cash balances , internally generated funds , including through aircraft sales and trading activity , and debt financings . we have structured ourselves with the goal to maintain investment-grade credit metrics and our debt financing strategy has focused on funding our business on an unsecured basis . unsecured financing provides us with operational flexibility when selling or transitioning aircraft from one airline to another . we ended 2019 with total debt outstanding , net of discounts and issuance costs , of $ 13.6 billion compared to $ 11.5 billion in 2018. our unsecured debt outstanding increased to $ 13.3 billion as of december 31 , 2019 from $ 11.3 billion as of december 31 , 2018. our unsecured debt as a percentage of total debt increased to 96.6 % as of december 31 , 2019 from 96.5 % as of december 31 , 2018. we increased our cash flows from operations by 11.0 % or $ 138.4 million to $ 1.4 billion in 2019 , as compared to $ 1.3 billion in 2018. our cash flows from operations increased primarily because of the continued growth of our fleet . our cash flow used in investing activities was $ 3.8 billion for the year ended december 31 , 2019 , which resulted primarily from the purchase of aircraft , partially offset by proceeds from our aircraft sales and trading activity . our cash flow provided by financing activities was $ 2.5 billion for the year ended december 31 , 2019 , which resulted primarily from the net proceeds received from the issuance of our unsecured notes and the issuance of preferred stock in 2019 , partially offset by the repayment of outstanding debt . we ended 2019 with available liquidity of $ 6.3 billion which is comprised of unrestricted cash of $ 317.5 million and undrawn balances under our unsecured revolving credit facilities of $ 6.0 billion . ``` Suspicious Activity Report : we finance the purchase of aircraft and our business with available cash balances , internally generated funds , including through aircraft sales and trading activities and debt financings . our debt financing strategy is focused on raising unsecured debt in the global bank and debt capital markets , with a limited utilization of government guaranteed export credit or other forms of secured financing . in 2019 , we issued approximately $ 3.2 billion in senior unsecured notes bearing interest at fixed rates ranging from 2.25 % to 4.25 % with one note bearing interest at a floating rate of three-month libor plus 0.67 % , with maturities ranging from 2021 to 2029. in addition , we increased our unsecured revolving credit facility capacity to approximately $ 5.8 billion , representing a 27.9 % increase from 2018 and extended the final maturity date to may 5 , 2023 bearing interest at a floating rate of libor plus 1.05 % . we ended 2019 with total 49 debt outstanding , net of discounts and issuance costs , of $ 13.6 billion , of which 88.4 % was at a fixed rate and 96.6 % of which was unsecured . as of december 31 , 2019 , our composite cost of funds was 3.34 % . in 2019 , total revenues increased by 20.1 % to $ 2.0 billion , compared to 2018. the increase in our total revenues is primarily due to the $ 3.0 billion increase in the net book value of our operating lease portfolio and an increase in our aircraft sales , trading and other activity . during the year ended december 31 , 2019 , our net income available to common stockholders was $ 575.2 million compared to $ 510.8 million for the year ended december 31 , 2018. our diluted earnings per share for the full year 2019 was $ 5.09 compared to $ 4.60 for the full year 2018. the increase in net income available to common stockholders in 2019 as compared to 2018 was primarily due to the continued growth of our fleet and an increase in our aircraft sales , trading and other activity , partially offset by increases in our interest expense and selling , general and administrative expenses . our adjusted net income before income taxes excludes the effects of certain non-cash items , one-time or non-recurring items that are not expected to continue in the future and certain other items . our adjusted net income before income taxes for the year ended december 31 , 2019 was $ 781.2 million or $ 6.91 per diluted share , compared to $ 690.3 million , or $ 6.20 per diluted share for the year ended december 31 , 2018. the increase in our adjusted net income before income taxes was principally driven by the continued growth of our fleet and an increase in our aircraft sales , trading and other activity , partially offset by increases in our interest expense and selling , general and administrative expenses . adjusted net income before income taxes and adjusted diluted earnings per share before income taxes are measures of financial and operational performance that are not defined by u.s. generally accepted accounting principles ( “ gaap ” ) . see note 3 in “ item 6. selected financial data ” of this annual report on form 10-k for a discussion of adjusted net income before income taxes and adjusted diluted earnings per share before income taxes as non-gaap measures and a reconciliation of these measures to net income available to common stockholders . our fleet we have continued to build one of the world 's youngest operating lease portfolios , including some of the most fuel-efficient commercial jet transport aircraft . our fleet , based on net book value , increased by 19.1 % , to $ 18.7 billion as of december 31 , 2019 , compared to $ 15.7 billion as of december 31 , 2018. during the year ended december 31 , 2019 , we took delivery of 53 aircraft from our new order pipeline , purchased two incremental aircraft in the secondary market and sold 30 aircraft and transferred eight aircraft from our operating lease portfolio to flight equipment held for sale , which is included in other assets on the consolidated balance sheet , ending the year with a total of 292 aircraft in our operating lease portfolio . the weighted average fleet age and weighted average remaining lease term of our operating lease portfolio as of december 31 , 2019 were 3.5 years and 7.2 years , respectively . we also managed 83 aircraft as of december 31 , 2019 . ​ 50 portfolio metrics of our fleet as of december 31 , 2019 and 2018 are as follows : replace_table_token_13_th ( 1 ) weighted-average fleet age and remaining lease term calculated based on net book value of our operating lease portfolio . ( 2 ) as of december 31 , 2019 , we transferred eight aircraft to flight equipment held for sale which is included in other assets on the consolidated balance sheet . all of these aircraft are excluded from the owned fleet count and included in our managed fleet count . ( 3 ) as of december 31 , 2019 , we had options to acquire up to 45 boeing 737-8 max aircraft and up to 25 airbus a220 aircraft . as of december 31 , 2018 , we had options to acquire up to five airbus a350-1000 aircraft and 45 boeing 737-8 max aircraft . story_separator_special_tag these events of default are subject to a number of important exceptions and qualifications set forth in the purchase agreements . unsecured term financings from time to time , we enter into unsecured term facilities . during 2019 , we entered into three unsecured term facilities aggregating $ 205.0 million comprised of ( i ) a $ 80.0 million term facility with a term of one year and bearing interest at a floating rate of libor plus 1.00 % ; ( ii ) a $ 75.0 million term facility with a term of three years and bearing interest at a floating rate of three-month libor plus 1.00 % ; ( iii ) a $ 50.0 million term facility with a term of one year and bearing interest at a floating rate of libor plus 1.00 % . during 2019 , we also entered into agreements to increase ( a ) our $ 518.0 million term facility by $ 82.0 million to an aggregate principal amount of $ 600.0 million , with a term of four years and bearing interest at a floating rate of libor plus 1.125 % and ( b ) our $ 5.4 million term facility by $ 19.6 million to an aggregate principal amount of $ 25.0 million with the term of such facility extended four years and bearing interest at a fixed rate of 3.00 % . the outstanding balance on our unsecured term facilities as of december 31 , 2019 was $ 883.1 million , bearing interest at fixed rates ranging from 2.75 % to 3.50 % and five facilities bearing interest at floating rates ranging from libor plus 0.95 % to libor plus 1.125 % . as of december 31 , 2019 , the remaining maturities of all unsecured term facilities ranged from approximately 0.09 years to approximately 4.75 years . as of december 31 , 2018 , the outstanding balance on our unsecured term facilities was $ 607.3 million . unsecured revolving credit facilities we have a senior unsecured revolving credit facility governed by a second amended and restated credit agreement , dated may 5 , 2014 ( as amended , modified and supplemented thereafter ) , with jp morgan chase bank , n.a . , as administrative agent , and the lenders from time to time party thereto . as of december 31 , 2019 , the unsecured revolving credit facility provides us with financing capacity of up to $ 5.8 billion subject to the terms and conditions set forth therein . lenders hold revolving commitments totaling approximately $ 5.5 billion that mature on may 5 , 2023 , commitments totaling $ 245.0 million that mature on may 5 , 2022 , commitments totaling $ 5.0 million that mature on may 5 , 2021 , and commitments totaling $ 92.7 million that mature on may 5 , 2020. as of december 31 , 2019 , borrowings under the unsecured revolving credit facility will generally bear interest at either ( i ) libor plus a margin of 1.05 % per year or ( ii ) an alternative base rate plus a margin of 0.05 % per year , subject , in each case , to increases or decreases based on declines in the credit ratings for our debt . we are required to pay a facility fee of 0.20 % per year ( also subject to increases or decreases based on declines in the credit ratings for our debt ) in respect of total commitments under the unsecured revolving credit facility . borrowings under the unsecured revolving credit facility are used to finance our working capital needs in the ordinary course of business and for other general corporate purposes . the total amount outstanding under our unsecured revolving credit facility was $ 20.0 million and $ 602.0 million as of december 31 , 2019 and december 31 , 2018 , respectively . the unsecured revolving credit facility provides for certain covenants , including covenants that limit our subsidiaries ' ability to incur , create , or assume certain unsecured indebtedness , and our subsidiaries ' abilities to engage 58 in certain mergers , consolidations , and asset sales . the unsecured revolving credit facility also requires us to comply with certain financial maintenance covenants ( measured at the end of each fiscal quarter ) including a maximum consolidated leverage ratio , minimum consolidated shareholders ' equity , and minimum consolidated unencumbered assets , as well as an interest coverage test that will be suspended when the unsecured revolving credit facility or certain of our other indebtedness is rated investment grade ( as defined in the unsecured revolving credit facility ) . as of december 31 , 2019 , such investment grade rating as defined in the unsecured revolving credit facility was achieved . we believe , as of december 31 , 2019 , we were in compliance in all material respects with all covenants contained in our unsecured revolving credit facility . in addition , the unsecured revolving credit facility contains customary events of default . in the case of an event of default , the lenders may terminate the commitments under the unsecured revolving credit facility and require immediate repayment of all outstanding borrowings and the cash collateralization of all outstanding letters of credit . such termination and acceleration will occur automatically in the event of certain bankruptcy events . these provisions are subject to a number of important exceptions and qualifications set forth in the credit agreement governing the unsecured revolving credit facility . during the year ended december 31 , 2019 , we entered into an uncommitted unsecured revolving credit facility with a total borrowing capacity of $ 175.0 million and a maturity date of october 18 , 2020 , bearing interest at a rate of libor plus 0.75 % . as of december 31 , 2019 , there were no outstanding amounts related to the uncommitted unsecured revolving credit facility . in january 2020 , we entered into an

we have adopted remote working tools to minimize the disruption to the achievement of our goals and objectives for employees whose job duties do not require physical presence to complete their work . certain manufacturing , quality and laboratory-based employees have continued to work onsite , and certain employees with customer-facing roles are onsite for training and interfacing in-person with customers in connection with the product launch of the rha® collection of dermal fillers . if the severity , duration or nature of the covid-19 pandemic changes , it may have an impact on our ability to continue on-site operations , which could disrupt our clinical trials and sales activities . the covid-19 pandemic has and may continue to negatively affect our ability to obtain approval of product candidates from the fda or other regulatory authorities , supply chain , end user demand for our products and commercialization activities . in november 2020 , the fda deferred a decision on the bla for daxibotulinumtoxina for injection for the treatment of moderate to severe glabellar ( frown ) lines . the fda reiterated that an inspection of our manufacturing facility is required as part of the bla approval process , but the fda was unable to conduct the required inspection of our manufacturing facility in newark , california , due to the fda 's travel restrictions associated with the covid-19 pandemic . the fda did not indicate there were any other review issues at the time beyond the on-site inspection . in addition , the product supply of the rha® collection of dermal fillers was delayed by distribution partner teoxane as they temporarily suspended production in geneva , switzerland as a precaution surrounding the covid-19 pandemic . teoxane resumed manufacturing operations at the end of april 2020 and delivered the first shipment of the rha® collection of dermal fillers to us in june 2020. as a result , our initial product launch of the rha® collection of dermal fillers was delayed by one quarter to september 2020. in addition , port closures and other restrictions resulting from the 86 covid-19 pandemic may disrupt our supply chain or limit our ability to obtain sufficient materials for the production of our products . we have taken steps to build sufficient levels of inventory to help mitigate potential future supply chain disruptions . our clinical trials have been and may continue to be affected by the covid-19 pandemic . the covid-19 pandemic has and may further delay enrollment in and the progress of our current and future clinical trials . patients may not be able to comply with clinical trial protocols if quarantines impede patient movement or interrupt healthcare services . site initiation and patient enrollment may be delayed due to prioritization of hospital resources toward the covid-19 pandemic . for example , enrollment in the juniper phase 2 adult upper limb spasticity trial was paused in march 2020 due to challenges related to the covid-19 pandemic . the trial was originally designed to include 128 subjects . due to the covid-19 challenges related to continued subject enrollment and the scheduling of in-person study visits , in june 2020 , we announced the decision to end screening and complete the juniper trial with the 83 patients enrolled to date . we released topline results from the phase 2 study in february 2021. to ensure proper clinical trial coordination and completion , in line with the fda-issued guidance of march 18 , 2020 on the conduct of clinical trials of medical products during the covid-19 pandemic , we are evaluating and implementing risk-based approaches for remote clinical trial monitoring and activities , including remote patient assessment , for those subjects who can not physically visit clinic sites , to ensure the full completion of trials . the ultimate impact of the covid-19 pandemic is highly uncertain and we do not yet know the full extent of potential delays or impacts on our bla , our manufacturing operations , supply chain , end user demand for our products and services , commercialization efforts , business operations , clinical trials and other aspects of our business , the healthcare systems or the global economy as a whole . as such , it is uncertain as to the full magnitude that the covid-19 pandemic will have on our financial condition , liquidity , and results of operations . financial update at-the-market offerings in november 2020 , we terminated our controlled equity offering sale agreement with cantor fitzgerald & co. ( the `` 2018 atm agreement `` ) and entered into a separate sales agreement with cowen and company , llc ( `` cowen `` ) as sales agent ( the “ 2020 atm agreement ” ) . under the 2020 atm agreement , we may offer and sell , from time to time , through cowen , shares of our common stock , par value $ 0.001 per share , having an aggregate offering price of up to $ 125.0 million . as of february 17 , 2021 , we sold 3.3 million shares of common stock under the 2020 atm agreement resulting in net proceeds of $ 90.1 million after sales agent commissions . convertible senior notes on february 14 , 2020 , we issued $ 287.5 million aggregate principal amount of the 2027 notes , pursuant to the indenture . the 2027 notes are senior unsecured obligations and bear interest at a rate of 1.75 % per year , payable semiannually in arrears on february 15 and august 15 of each year , beginning on august 15 , 2020. the 2027 notes will mature on february 15 , 2027 , unless earlier converted , redeemed or repurchased . in connection with issuing the 2027 notes , we received $ 278.3 million in net proceeds , after deducting the initial purchasers ' discount , commissions , and other issuance costs . story_separator_special_tag we began the continuation phase of the onabotulinumtoxina biosimilar program and are moving forward with characterization and product development work , followed by an anticipated filing of an investigational new drug application ( “ ind ” ) with the fda in 2022. results of operations a discussion regarding our financial condition and results of operations for the year ended december 31 , 2020 compared to the same period in 2019 is presented below . for a discussion regarding our financial condition and results of operations for the year ended december 31 , 2019 compared to the same period in 2018 , see part ii , item 7 . “ management 's discussion and analysis of financial condition and results of operations—results of operations ” of our annual report on form 10-k for the year ended december 31 , 2019 , as filed with the sec on february 26 , 2020. as a result of the hintmd acquisition in july 2020 , we have two reportable segments : the product segment and the service segment . our product segment refers to the business that includes the research and development of innovative aesthetic and therapeutic products , including daxibotulinumtoxina for injection for various indications , the u.s. distribution of the rha® collection of dermal fillers , and the onabotulinumtoxina biosimilar program in partnership with viatris . both product and collaboration revenues and related expenses are included in product segment . our service segment refers to the business of the hintmd platform , which is a registered payfac and enables practices to process payments for their patients and provides subscription and pay-over-time solutions that support practices ' aesthetic treatment plans . revenue replace_table_token_1_th n/m - percentage not meaningful product revenue we currently generate product revenue primarily from the sale of the rha® collection of dermal fillers . we made initial sales of the rha® collection of dermal fillers in june 2020 as a part of the prevu program and the formal commercial launch took place in september 2020. for additional information on the prevu program , please read part i , item 1 . “ business — sales and marketing ” . collaboration revenue for the year ended december 31 , 2020 , our collaboration revenue recognized increased compared to the same periods in 2019 due to the increased development activities in connection with the viatris collaboration . in june 2020 , we announced that viatris provided us its written notice of its continuation decision . service revenue our service revenue is generated from the hintmd platform , which earns revenues through : ( i ) credit card processing revenues net of interchange and other fees and ( ii ) monthly per patient fees for practices that use the subscription capabilities . we completed the hintmd acquisition in july 2020 . 91 in our current platform service agreements , we generally recognize service revenue net of costs as an accounting agent . revenue recognized in new or revised future service offerings and arrangements may be presented differently subject to the accounting evaluation of control . please also read our revenue accounting policies in part iv , item 15 . “ exhibits and financial statement schedules—notes to consolidated financial statements— note 2 —summary of significant accounting policies ” in this annual report on form 10-k. operating expenses replace_table_token_2_th our operating expenses consist of costs of product revenue ( exclusive of amortization ) and cost of service revenue ( exclusive of amortization ) , research and development expenses , selling , general and administrative expenses , and amortization . the largest component of our operating expenses is our personnel costs including stock-based compensation , which is a subset of our selling , general and administrative expenses . we expect our operating expenses to increase in the near term as we continue to commercialize the rha® collection of dermal fillers in the u.s. and the next-generation hintmd platform , account for the full year impact of an expanded organization related to the hintmd acquisition and the hiring of our sales force , and other actions taken to prepare for the commercialization of daxibotulinumtoxina for injection for the treatment of glabellar lines if our bla is approved in 2021. we also expect to decrease our operating expenses related to research and development as we complete existing clinical trials and associated programs related to daxibotulinumtoxina for injection for the treatment of cervical dystonia , adult upper limb spasticity , plantar fasciitis , offset by future potential new indications , and an onabotulinumtoxina biosimilar , as well as the impact of capitalized inventory costs of daxibotulinumtoxina for injection , if approved . cost of product revenue ( exclusive of amortization ) the costs of product revenue ( exclusive of amortization ) primarily consists of the cost of inventory and distribution expenses related to the rha® collection of dermal fillers . we did not incur costs of product revenue until the first delivery of the rha® collection of dermal fillers in the second quarter of 2020. cost of service revenue ( exclusive of amortization ) the costs of service revenue ( exclusive of amortization ) consist of limited costs in fulfilling certain services provided by the hintmd platform . we did not incur cost of service revenue related to fulfillment of services until the completion of the hintmd acquisition in july 2020. selling , general and administrative expenses selling , general and administrative expenses consist primarily of the following : rha® collection of dermal fillers and hintmd platform service sales and marketing activities and compensation costs of our sales force ; daxibotulinumtoxina for injection pre-commercial activities such as market research and public relations ; 92 personnel and professional service costs in our finance , information technology , commercial , investor relations , legal , human resources , and other administrative functions , including related stock-based compensation costs ; and depreciation and amortization of certain assets used in selling , general and administrative activities . we expect that our selling ,

liquidity and capital resources our financial condition is summarized as follows : replace_table_token_6_th sources and uses of cash we hold our cash , cash equivalents , and short-term investments in a variety of non-interest bearing bank accounts and interest-bearing instruments subject to investment guidelines allowing for certain lower-risk holdings such as , but not limited to , money market accounts , u.s. treasury securities , u.s. government and agency securities , overnight purchase agreements , and commercial paper . our investment portfolio is structured to provide for investment maturities and access to cash to fund our anticipated working capital needs . as of december 31 , 2020 and 2019 , we had cash , cash equivalents and short-term investments of $ 436.5 million and $ 290.1 million , respectively , which represented an increase of $ 146.4 million from december 31 , 2019 to december 31 , 2020. the increase was primarily due to the proceeds from the issuance of convertible senior notes of $ 287.5 million , the issuance of shares of our common stock in connection with an at-the-market offering program , net of commissions , of $ 68.4 million , the issuance of shares of our common stock in january 2020 in connection with the exercise of the over-allotment option in the december 2019 follow-on public offering ( described below ) , net of underwriting discounts and commissions , of $ 15.6 million , the $ 30.0 million cash milestone payment from viatris , the proceeds from the exercise of stock options , common stock warrants and the purchase of shares of our common stock under the 2014 espp of $ 6.9 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 our financial condition is summarized as follows : replace_table_token_6_th sources and uses of cash we hold our cash , cash equivalents , and short-term investments in a variety of non-interest bearing bank accounts and interest-bearing instruments subject to investment guidelines allowing for certain lower-risk holdings such as , but not limited to , money market accounts , u.s. treasury securities , u.s. government and agency securities , overnight purchase agreements , and commercial paper . our investment portfolio is structured to provide for investment maturities and access to cash to fund our anticipated working capital needs . as of december 31 , 2020 and 2019 , we had cash , cash equivalents and short-term investments of $ 436.5 million and $ 290.1 million , respectively , which represented an increase of $ 146.4 million from december 31 , 2019 to december 31 , 2020. the increase was primarily due to the proceeds from the issuance of convertible senior notes of $ 287.5 million , the issuance of shares of our common stock in connection with an at-the-market offering program , net of commissions , of $ 68.4 million , the issuance of shares of our common stock in january 2020 in connection with the exercise of the over-allotment option in the december 2019 follow-on public offering ( described below ) , net of underwriting discounts and commissions , of $ 15.6 million , the $ 30.0 million cash milestone payment from viatris , the proceeds from the exercise of stock options , common stock warrants and the purchase of shares of our common stock under the 2014 espp of $ 6.9 million . ``` Suspicious Activity Report : we have adopted remote working tools to minimize the disruption to the achievement of our goals and objectives for employees whose job duties do not require physical presence to complete their work . certain manufacturing , quality and laboratory-based employees have continued to work onsite , and certain employees with customer-facing roles are onsite for training and interfacing in-person with customers in connection with the product launch of the rha® collection of dermal fillers . if the severity , duration or nature of the covid-19 pandemic changes , it may have an impact on our ability to continue on-site operations , which could disrupt our clinical trials and sales activities . the covid-19 pandemic has and may continue to negatively affect our ability to obtain approval of product candidates from the fda or other regulatory authorities , supply chain , end user demand for our products and commercialization activities . in november 2020 , the fda deferred a decision on the bla for daxibotulinumtoxina for injection for the treatment of moderate to severe glabellar ( frown ) lines . the fda reiterated that an inspection of our manufacturing facility is required as part of the bla approval process , but the fda was unable to conduct the required inspection of our manufacturing facility in newark , california , due to the fda 's travel restrictions associated with the covid-19 pandemic . the fda did not indicate there were any other review issues at the time beyond the on-site inspection . in addition , the product supply of the rha® collection of dermal fillers was delayed by distribution partner teoxane as they temporarily suspended production in geneva , switzerland as a precaution surrounding the covid-19 pandemic . teoxane resumed manufacturing operations at the end of april 2020 and delivered the first shipment of the rha® collection of dermal fillers to us in june 2020. as a result , our initial product launch of the rha® collection of dermal fillers was delayed by one quarter to september 2020. in addition , port closures and other restrictions resulting from the 86 covid-19 pandemic may disrupt our supply chain or limit our ability to obtain sufficient materials for the production of our products . we have taken steps to build sufficient levels of inventory to help mitigate potential future supply chain disruptions . our clinical trials have been and may continue to be affected by the covid-19 pandemic . the covid-19 pandemic has and may further delay enrollment in and the progress of our current and future clinical trials . patients may not be able to comply with clinical trial protocols if quarantines impede patient movement or interrupt healthcare services . site initiation and patient enrollment may be delayed due to prioritization of hospital resources toward the covid-19 pandemic . for example , enrollment in the juniper phase 2 adult upper limb spasticity trial was paused in march 2020 due to challenges related to the covid-19 pandemic . the trial was originally designed to include 128 subjects . due to the covid-19 challenges related to continued subject enrollment and the scheduling of in-person study visits , in june 2020 , we announced the decision to end screening and complete the juniper trial with the 83 patients enrolled to date . we released topline results from the phase 2 study in february 2021. to ensure proper clinical trial coordination and completion , in line with the fda-issued guidance of march 18 , 2020 on the conduct of clinical trials of medical products during the covid-19 pandemic , we are evaluating and implementing risk-based approaches for remote clinical trial monitoring and activities , including remote patient assessment , for those subjects who can not physically visit clinic sites , to ensure the full completion of trials . the ultimate impact of the covid-19 pandemic is highly uncertain and we do not yet know the full extent of potential delays or impacts on our bla , our manufacturing operations , supply chain , end user demand for our products and services , commercialization efforts , business operations , clinical trials and other aspects of our business , the healthcare systems or the global economy as a whole . as such , it is uncertain as to the full magnitude that the covid-19 pandemic will have on our financial condition , liquidity , and results of operations . financial update at-the-market offerings in november 2020 , we terminated our controlled equity offering sale agreement with cantor fitzgerald & co. ( the `` 2018 atm agreement `` ) and entered into a separate sales agreement with cowen and company , llc ( `` cowen `` ) as sales agent ( the “ 2020 atm agreement ” ) . under the 2020 atm agreement , we may offer and sell , from time to time , through cowen , shares of our common stock , par value $ 0.001 per share , having an aggregate offering price of up to $ 125.0 million . as of february 17 , 2021 , we sold 3.3 million shares of common stock under the 2020 atm agreement resulting in net proceeds of $ 90.1 million after sales agent commissions . convertible senior notes on february 14 , 2020 , we issued $ 287.5 million aggregate principal amount of the 2027 notes , pursuant to the indenture . the 2027 notes are senior unsecured obligations and bear interest at a rate of 1.75 % per year , payable semiannually in arrears on february 15 and august 15 of each year , beginning on august 15 , 2020. the 2027 notes will mature on february 15 , 2027 , unless earlier converted , redeemed or repurchased . in connection with issuing the 2027 notes , we received $ 278.3 million in net proceeds , after deducting the initial purchasers ' discount , commissions , and other issuance costs . story_separator_special_tag we began the continuation phase of the onabotulinumtoxina biosimilar program and are moving forward with characterization and product development work , followed by an anticipated filing of an investigational new drug application ( “ ind ” ) with the fda in 2022. results of operations a discussion regarding our financial condition and results of operations for the year ended december 31 , 2020 compared to the same period in 2019 is presented below . for a discussion regarding our financial condition and results of operations for the year ended december 31 , 2019 compared to the same period in 2018 , see part ii , item 7 . “ management 's discussion and analysis of financial condition and results of operations—results of operations ” of our annual report on form 10-k for the year ended december 31 , 2019 , as filed with the sec on february 26 , 2020. as a result of the hintmd acquisition in july 2020 , we have two reportable segments : the product segment and the service segment . our product segment refers to the business that includes the research and development of innovative aesthetic and therapeutic products , including daxibotulinumtoxina for injection for various indications , the u.s. distribution of the rha® collection of dermal fillers , and the onabotulinumtoxina biosimilar program in partnership with viatris . both product and collaboration revenues and related expenses are included in product segment . our service segment refers to the business of the hintmd platform , which is a registered payfac and enables practices to process payments for their patients and provides subscription and pay-over-time solutions that support practices ' aesthetic treatment plans . revenue replace_table_token_1_th n/m - percentage not meaningful product revenue we currently generate product revenue primarily from the sale of the rha® collection of dermal fillers . we made initial sales of the rha® collection of dermal fillers in june 2020 as a part of the prevu program and the formal commercial launch took place in september 2020. for additional information on the prevu program , please read part i , item 1 . “ business — sales and marketing ” . collaboration revenue for the year ended december 31 , 2020 , our collaboration revenue recognized increased compared to the same periods in 2019 due to the increased development activities in connection with the viatris collaboration . in june 2020 , we announced that viatris provided us its written notice of its continuation decision . service revenue our service revenue is generated from the hintmd platform , which earns revenues through : ( i ) credit card processing revenues net of interchange and other fees and ( ii ) monthly per patient fees for practices that use the subscription capabilities . we completed the hintmd acquisition in july 2020 . 91 in our current platform service agreements , we generally recognize service revenue net of costs as an accounting agent . revenue recognized in new or revised future service offerings and arrangements may be presented differently subject to the accounting evaluation of control . please also read our revenue accounting policies in part iv , item 15 . “ exhibits and financial statement schedules—notes to consolidated financial statements— note 2 —summary of significant accounting policies ” in this annual report on form 10-k. operating expenses replace_table_token_2_th our operating expenses consist of costs of product revenue ( exclusive of amortization ) and cost of service revenue ( exclusive of amortization ) , research and development expenses , selling , general and administrative expenses , and amortization . the largest component of our operating expenses is our personnel costs including stock-based compensation , which is a subset of our selling , general and administrative expenses . we expect our operating expenses to increase in the near term as we continue to commercialize the rha® collection of dermal fillers in the u.s. and the next-generation hintmd platform , account for the full year impact of an expanded organization related to the hintmd acquisition and the hiring of our sales force , and other actions taken to prepare for the commercialization of daxibotulinumtoxina for injection for the treatment of glabellar lines if our bla is approved in 2021. we also expect to decrease our operating expenses related to research and development as we complete existing clinical trials and associated programs related to daxibotulinumtoxina for injection for the treatment of cervical dystonia , adult upper limb spasticity , plantar fasciitis , offset by future potential new indications , and an onabotulinumtoxina biosimilar , as well as the impact of capitalized inventory costs of daxibotulinumtoxina for injection , if approved . cost of product revenue ( exclusive of amortization ) the costs of product revenue ( exclusive of amortization ) primarily consists of the cost of inventory and distribution expenses related to the rha® collection of dermal fillers . we did not incur costs of product revenue until the first delivery of the rha® collection of dermal fillers in the second quarter of 2020. cost of service revenue ( exclusive of amortization ) the costs of service revenue ( exclusive of amortization ) consist of limited costs in fulfilling certain services provided by the hintmd platform . we did not incur cost of service revenue related to fulfillment of services until the completion of the hintmd acquisition in july 2020. selling , general and administrative expenses selling , general and administrative expenses consist primarily of the following : rha® collection of dermal fillers and hintmd platform service sales and marketing activities and compensation costs of our sales force ; daxibotulinumtoxina for injection pre-commercial activities such as market research and public relations ; 92 personnel and professional service costs in our finance , information technology , commercial , investor relations , legal , human resources , and other administrative functions , including related stock-based compensation costs ; and depreciation and amortization of certain assets used in selling , general and administrative activities . we expect that our selling ,

we currently have one marketed product , two products in phase 2 of clinical development and several products in pre-clinical development . results of operations comparison of years ended december 31 , 2011 and 2010 our licensing revenue for the year ended december 31 , 2011 was $ 1,181,000 as compared to $ 347,000 for the same period of 2010 , an increase of $ 834,000. we recognize licensing revenue over the period of the performance obligation under our licensing agreements . in the third quarter 2011 , we regained licenses from our former korean partner for prolindac and mugard and recognized all of the previously received license fees ( $ 849,000 ) that were recorded in deferred revenue . product sales of mugard in the united states totaled $ 548,000 for the year ended december 31 , 2011 as compared with $ 8,000 for the same period of 2010 , an increase of $ 540,000. our first sales were recorded in the fourth quarter of 2010. we recorded royalty revenue for mugard in europe of $ 89,000 for the year ended december 31 , 2011 as compared to $ 76,000 for the same period of 2010 , an increase of $ 13,000. sponsored research and development revenues were $ 30,000 for the year ended december 31 , 2011 as compared to $ 50,000 for the same period of 2010 , a decrease of $ 20,000. the revenues in 2011 and 2010 are for research various collaborations on our coboral and cobacyte projects . total research and development spending for the year ended december 31 , 2011 was $ 4,200,000 , as compared to $ 3,349,000 for the same period of 2010 , an increase of $ 851,000. the increase in expenses was primarily due to : · increased clinical development with trials for prolindac , mugard and thiarabine ( $ 610,000 ) ; · increased salary and related costs due to new employees ( $ 357,000 ) ; · increased external lab costs for coboral and cobacyte ( $ 152,000 ) · other net increases in research spending ( $ 76,000 ) . · decreased stock compensation expense for lower expense of option grants for research and development employees ( $ 194,000 ) ; and · lower external development expenses for prolindac ( $ 150,000 ) . the product was made in 2010 and is used in the clinical trials ongoing this year . product costs for mugard in the united states were $ 1,216,000 for the year ended december 31 , 2011 as compared to $ 140,000 for the same period in 2010 , an increase of $ 1,076,000. mugard was launched in the fourth quarter of 2010. total general and administrative expenses were $ 4,075,000 for the year ended december 31 , 2011 , a decrease of $ 436,000 compared to the same period in 2010 of $ 4,511,000. the decrease in expenses was due primarily to the following : · decreased general business consulting expenses due to the higher use of outside consultants in 2010 ( $ 967,000 ) versus the same period in 2011 ; · decreased patent and license fees ( $ 77,000 ) ; · decreased net other general and administrative expenses ( $ 23,000 ) ; 28 · increased salary and related costs ( $ 262,000 ) ; · increased stock compensation expense due to higher expense of option grants for general and administrative employees and directors ( $ 246,000 ) ; and · increased rent expenses ( $ 123,000 ) due to additional office space . depreciation and amortization was $ 233,000 for the year ended december 31 , 2011 as compared to $ 238,000 for the same period in 2010. total operating expenses for the year ended december 31 , 2011 were $ 9,727,000 as compared to total operating expenses of $ 8,238,000 for the same period of 2010 , an increase of $ 1,489,000 for the reasons listed above . interest and miscellaneous income was $ 1,334,000 for the year ended december 31 , 2011 as compared to $ 2,046,000 for the same period of 2010 , a decrease of $ 712,000. in 2010 , we recorded miscellaneous income for one time grants of $ 1,479,000 from qualifying therapeutic discovery project grants from the united states . miscellaneous income was $ 804,000 in 2011 due to negotiated payables and write-off of other accounts payable and offset by $ 37,000 of other miscellaneous income . interest income is comparable to the same period in 2010. interest and other expense was $ 963,000 for the year ended december 31 , 2011 as compared to $ 607,000 in the same period of 2010 , an increase of $ 356,000. the increase in interest and other expense was due to additional interest that was accrued on the long-term notes due to an increase in the interest rate of the note . we recorded a gain related to warrants classified as derivative liabilities of $ 3,580,000 for the year ended december 31 , 2011 as compared to $ 4,621,000 for the same period of 2010. a derivative for warrants was recorded in the fourth quarter of 2009 when the fair value of the warrants that were issued with our series a convertible preferred stock were reclassified from equity per the requirements of accounting guidance as a result of the repricing feature . we recorded a gain for the derivative liability related to preferred stock of $ 1,410,000 for the year ended december 31 , 2011 and a loss of $ 5,840,000 for the same period of 2010. the derivative was recorded for the first time in the third quarter of 2010 per the requirements of accounting guidance due to the possibility of repricingour series a convertible preferred stock if we sold our common stock at a price below the original conversion price . story_separator_special_tag preferred stock dividends of $ 1,774,000 were accrued for the year ended december 31 , 2011 and $ 1,791,000 for the same period of 2010 , a decrease of $ 17,000. the decrease is due to some preferred shareholders converting their ownership to common stock . dividends are due semi-annually in either cash or common stock . net loss allocable to common stockholders for the year ended december 31 , 2011 was $ 4,306,000 , or a $ 0.22 basic and diluted loss per common share , compared with net loss of $ 9,328,000 , or a $ 0.60 basic and diluted loss per common share for the same period in 2010 , a decreased loss of $ 5,022,000. story_separator_special_tag · competing technological developments ; · the cost of manufacturing and scale-up ; · the ability to establish and maintain effective commercialization arrangements and activities ; and · successful regulatory filings . we have devoted substantially all of our efforts and resources to research and development conducted on our own behalf . the following table summarizes research and development spending by project category , which spending includes , but is not limited to , payroll and personnel expense , lab supplies , preclinical expense , development cost , clinical trial expense , outside manufacturing expense and consulting expense : replace_table_token_2_th ( 1 ) cumulative spending from inception of the company or project through december 31 , 2011 . ( 2 ) includes : coboral , cobacyte , thiarabine and other projects . 30 due to uncertainties and certain of the risk factors described above , including those relating to our ability to successfully commercialize our drug candidates , our ability to obtain necessary additional capital to fund operations in the future , our ability to successfully manufacture our products and our product candidates in clinical quantities or for commercial purposes , government regulation to which we are subject , the uncertainty associated with preclinical and clinical testing , intense competition that we face , market acceptance of our products and protection of our intellectual property , it is not possible to reliably predict future spending or time to completion by project or product category or the period in which material net cash inflows from significant projects are expected to commence . if we are unable to timely complete a particular project , our research and development efforts could be delayed or reduced , our business could suffer depending on the significance of the project and we might need to raise additional capital to fund operations , as discussed in the risk factors above , including without limitation those relating to the uncertainty of the success of our research and development activities and our ability to obtain necessary additional capital to fund operations in the future . as discussed in such risk factors , delays in our research and development efforts and any inability to raise additional funds could cause us to eliminate one or more of our research and development programs . we plan to continue our policy of investing any available funds in certificates of deposit , money market funds , government securities and investment-grade interest-bearing securities . we do not invest in derivative financial instruments . we do not believe inflation or changing prices have had a material impact on our revenue or operating income in the past three years . climate change we do not believe there is anything unique to our business which would result in climate change regulations having a disproportional effect on us as compared to u.s. industry overall . critical accounting policies and estimates the preparation of our consolidated financial statements in conformity with accounting principles generally accepted in the united states of america requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities , disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reported period . in applying our accounting principles , we must often make individual estimates and assumptions regarding expected outcomes or uncertainties . as you might expect , the actual results or outcomes are often different than the estimated or assumed amounts . these differences are usually minor and are included in our consolidated financial statements as soon as they are known . our estimates , judgments and assumptions are continually evaluated based on available information and experience . because of the use of estimates inherent in the financial reporting process , actual results could differ from those estimates . asset impairment our intangible assets at december 31 , 2011 consisted primarily of patents acquired in acquisitions and licenses which were recorded at fair value on the acquisition date . we perform an impairment test when indications of impairment exist . at december 31 , 2011 and for the year then ended , management believes no impairment of our intangible assets exists . receivables receivables are reported in the balance sheets at the outstanding amount net of an allowance for doubtful accounts . we continually evaluate the creditworthiness of our customers and their financial condition and generally do not require collateral . the allowance for doubtful accounts is based upon reviews of specific customer balances , historic losses , and general economic conditions . as of december 31 , 2011 and 2010 , no allowance was recorded as all accounts are considered collectible . revenues our revenues are generated from licensing , research and development agreements , royalties and product sales . we recognize revenue in accordance with sec staff accounting bulletin no . 104 ( sab 104 ) , revenue recognition . license revenue is recognized over the remaining life of the underlying patent . research and development revenues are recognized as services are performed . royalties are recognized in the period of sales . we recognize revenue for mugard product sales at the time title transfers to our customers , which occurs at the time product is

liquidity and capital resources we have funded our operations primarily through private sales of common stock , preferred stock , convertible notes and through licensing agreements . our principal source of liquidity is cash and cash equivalents . product sales and royalty revenues provided limited funding for operations during the year ended december 31 , 2011. as of december 31 , 2011 , our cash and cash equivalents were $ 2,460,000 and our net cash burn rate for the year ended december 31 , 2011 , was approximately $ 602,000 per month . as of december 31 , 2011 , our working capital deficit was $ 8,877,000. our working capital deficit at december 31 , 2011 represented an increase of $ 2,741,000 as compared to our working capital deficit as of december 31 , 2010 of $ 6,136,000. the increase in the working capital deficit at december 31 , 2011 reflects twelve months of net operating costs , repayment of $ 2.75 million of the outstanding loan offset by $ 5,826,000 net proceeds from the november 2011 private placement . as of december 31 , 2011 , we had one secured promissory note outstanding in the principal amount of $ 2.75 million that is due on september 13 , 2012. as of march 23 , 2012 , we did not have enough capital to achieve our long-term goals .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources we have funded our operations primarily through private sales of common stock , preferred stock , convertible notes and through licensing agreements . our principal source of liquidity is cash and cash equivalents . product sales and royalty revenues provided limited funding for operations during the year ended december 31 , 2011. as of december 31 , 2011 , our cash and cash equivalents were $ 2,460,000 and our net cash burn rate for the year ended december 31 , 2011 , was approximately $ 602,000 per month . as of december 31 , 2011 , our working capital deficit was $ 8,877,000. our working capital deficit at december 31 , 2011 represented an increase of $ 2,741,000 as compared to our working capital deficit as of december 31 , 2010 of $ 6,136,000. the increase in the working capital deficit at december 31 , 2011 reflects twelve months of net operating costs , repayment of $ 2.75 million of the outstanding loan offset by $ 5,826,000 net proceeds from the november 2011 private placement . as of december 31 , 2011 , we had one secured promissory note outstanding in the principal amount of $ 2.75 million that is due on september 13 , 2012. as of march 23 , 2012 , we did not have enough capital to achieve our long-term goals . ``` Suspicious Activity Report : we currently have one marketed product , two products in phase 2 of clinical development and several products in pre-clinical development . results of operations comparison of years ended december 31 , 2011 and 2010 our licensing revenue for the year ended december 31 , 2011 was $ 1,181,000 as compared to $ 347,000 for the same period of 2010 , an increase of $ 834,000. we recognize licensing revenue over the period of the performance obligation under our licensing agreements . in the third quarter 2011 , we regained licenses from our former korean partner for prolindac and mugard and recognized all of the previously received license fees ( $ 849,000 ) that were recorded in deferred revenue . product sales of mugard in the united states totaled $ 548,000 for the year ended december 31 , 2011 as compared with $ 8,000 for the same period of 2010 , an increase of $ 540,000. our first sales were recorded in the fourth quarter of 2010. we recorded royalty revenue for mugard in europe of $ 89,000 for the year ended december 31 , 2011 as compared to $ 76,000 for the same period of 2010 , an increase of $ 13,000. sponsored research and development revenues were $ 30,000 for the year ended december 31 , 2011 as compared to $ 50,000 for the same period of 2010 , a decrease of $ 20,000. the revenues in 2011 and 2010 are for research various collaborations on our coboral and cobacyte projects . total research and development spending for the year ended december 31 , 2011 was $ 4,200,000 , as compared to $ 3,349,000 for the same period of 2010 , an increase of $ 851,000. the increase in expenses was primarily due to : · increased clinical development with trials for prolindac , mugard and thiarabine ( $ 610,000 ) ; · increased salary and related costs due to new employees ( $ 357,000 ) ; · increased external lab costs for coboral and cobacyte ( $ 152,000 ) · other net increases in research spending ( $ 76,000 ) . · decreased stock compensation expense for lower expense of option grants for research and development employees ( $ 194,000 ) ; and · lower external development expenses for prolindac ( $ 150,000 ) . the product was made in 2010 and is used in the clinical trials ongoing this year . product costs for mugard in the united states were $ 1,216,000 for the year ended december 31 , 2011 as compared to $ 140,000 for the same period in 2010 , an increase of $ 1,076,000. mugard was launched in the fourth quarter of 2010. total general and administrative expenses were $ 4,075,000 for the year ended december 31 , 2011 , a decrease of $ 436,000 compared to the same period in 2010 of $ 4,511,000. the decrease in expenses was due primarily to the following : · decreased general business consulting expenses due to the higher use of outside consultants in 2010 ( $ 967,000 ) versus the same period in 2011 ; · decreased patent and license fees ( $ 77,000 ) ; · decreased net other general and administrative expenses ( $ 23,000 ) ; 28 · increased salary and related costs ( $ 262,000 ) ; · increased stock compensation expense due to higher expense of option grants for general and administrative employees and directors ( $ 246,000 ) ; and · increased rent expenses ( $ 123,000 ) due to additional office space . depreciation and amortization was $ 233,000 for the year ended december 31 , 2011 as compared to $ 238,000 for the same period in 2010. total operating expenses for the year ended december 31 , 2011 were $ 9,727,000 as compared to total operating expenses of $ 8,238,000 for the same period of 2010 , an increase of $ 1,489,000 for the reasons listed above . interest and miscellaneous income was $ 1,334,000 for the year ended december 31 , 2011 as compared to $ 2,046,000 for the same period of 2010 , a decrease of $ 712,000. in 2010 , we recorded miscellaneous income for one time grants of $ 1,479,000 from qualifying therapeutic discovery project grants from the united states . miscellaneous income was $ 804,000 in 2011 due to negotiated payables and write-off of other accounts payable and offset by $ 37,000 of other miscellaneous income . interest income is comparable to the same period in 2010. interest and other expense was $ 963,000 for the year ended december 31 , 2011 as compared to $ 607,000 in the same period of 2010 , an increase of $ 356,000. the increase in interest and other expense was due to additional interest that was accrued on the long-term notes due to an increase in the interest rate of the note . we recorded a gain related to warrants classified as derivative liabilities of $ 3,580,000 for the year ended december 31 , 2011 as compared to $ 4,621,000 for the same period of 2010. a derivative for warrants was recorded in the fourth quarter of 2009 when the fair value of the warrants that were issued with our series a convertible preferred stock were reclassified from equity per the requirements of accounting guidance as a result of the repricing feature . we recorded a gain for the derivative liability related to preferred stock of $ 1,410,000 for the year ended december 31 , 2011 and a loss of $ 5,840,000 for the same period of 2010. the derivative was recorded for the first time in the third quarter of 2010 per the requirements of accounting guidance due to the possibility of repricingour series a convertible preferred stock if we sold our common stock at a price below the original conversion price . story_separator_special_tag preferred stock dividends of $ 1,774,000 were accrued for the year ended december 31 , 2011 and $ 1,791,000 for the same period of 2010 , a decrease of $ 17,000. the decrease is due to some preferred shareholders converting their ownership to common stock . dividends are due semi-annually in either cash or common stock . net loss allocable to common stockholders for the year ended december 31 , 2011 was $ 4,306,000 , or a $ 0.22 basic and diluted loss per common share , compared with net loss of $ 9,328,000 , or a $ 0.60 basic and diluted loss per common share for the same period in 2010 , a decreased loss of $ 5,022,000. story_separator_special_tag · competing technological developments ; · the cost of manufacturing and scale-up ; · the ability to establish and maintain effective commercialization arrangements and activities ; and · successful regulatory filings . we have devoted substantially all of our efforts and resources to research and development conducted on our own behalf . the following table summarizes research and development spending by project category , which spending includes , but is not limited to , payroll and personnel expense , lab supplies , preclinical expense , development cost , clinical trial expense , outside manufacturing expense and consulting expense : replace_table_token_2_th ( 1 ) cumulative spending from inception of the company or project through december 31 , 2011 . ( 2 ) includes : coboral , cobacyte , thiarabine and other projects . 30 due to uncertainties and certain of the risk factors described above , including those relating to our ability to successfully commercialize our drug candidates , our ability to obtain necessary additional capital to fund operations in the future , our ability to successfully manufacture our products and our product candidates in clinical quantities or for commercial purposes , government regulation to which we are subject , the uncertainty associated with preclinical and clinical testing , intense competition that we face , market acceptance of our products and protection of our intellectual property , it is not possible to reliably predict future spending or time to completion by project or product category or the period in which material net cash inflows from significant projects are expected to commence . if we are unable to timely complete a particular project , our research and development efforts could be delayed or reduced , our business could suffer depending on the significance of the project and we might need to raise additional capital to fund operations , as discussed in the risk factors above , including without limitation those relating to the uncertainty of the success of our research and development activities and our ability to obtain necessary additional capital to fund operations in the future . as discussed in such risk factors , delays in our research and development efforts and any inability to raise additional funds could cause us to eliminate one or more of our research and development programs . we plan to continue our policy of investing any available funds in certificates of deposit , money market funds , government securities and investment-grade interest-bearing securities . we do not invest in derivative financial instruments . we do not believe inflation or changing prices have had a material impact on our revenue or operating income in the past three years . climate change we do not believe there is anything unique to our business which would result in climate change regulations having a disproportional effect on us as compared to u.s. industry overall . critical accounting policies and estimates the preparation of our consolidated financial statements in conformity with accounting principles generally accepted in the united states of america requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities , disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reported period . in applying our accounting principles , we must often make individual estimates and assumptions regarding expected outcomes or uncertainties . as you might expect , the actual results or outcomes are often different than the estimated or assumed amounts . these differences are usually minor and are included in our consolidated financial statements as soon as they are known . our estimates , judgments and assumptions are continually evaluated based on available information and experience . because of the use of estimates inherent in the financial reporting process , actual results could differ from those estimates . asset impairment our intangible assets at december 31 , 2011 consisted primarily of patents acquired in acquisitions and licenses which were recorded at fair value on the acquisition date . we perform an impairment test when indications of impairment exist . at december 31 , 2011 and for the year then ended , management believes no impairment of our intangible assets exists . receivables receivables are reported in the balance sheets at the outstanding amount net of an allowance for doubtful accounts . we continually evaluate the creditworthiness of our customers and their financial condition and generally do not require collateral . the allowance for doubtful accounts is based upon reviews of specific customer balances , historic losses , and general economic conditions . as of december 31 , 2011 and 2010 , no allowance was recorded as all accounts are considered collectible . revenues our revenues are generated from licensing , research and development agreements , royalties and product sales . we recognize revenue in accordance with sec staff accounting bulletin no . 104 ( sab 104 ) , revenue recognition . license revenue is recognized over the remaining life of the underlying patent . research and development revenues are recognized as services are performed . royalties are recognized in the period of sales . we recognize revenue for mugard product sales at the time title transfers to our customers , which occurs at the time product is

within the total range of products , our steel pipe tends to fit larger-diameter , higher-pressure pipeline applications , while our precast concrete products mainly serve stormwater and sanitary sewer systems . our current economic environment we operate our business with a long-term time horizon . projects are often planned for many years in advance , and are sometimes part of 50-year build-out plans . long-term demand for water infrastructure projects in the united states appears strong . however , in the near term , we expect that strained governmental and water agency budgets and financing along with increased manufacturing capacity from competition could impact the business . fluctuating steel costs will also be a factor , as the ability to adjust our selling prices as steel costs fluctuate depends on market conditions . purchased steel represents a substantial portion of our cost of sales , and changes in our selling prices often correlate directly to changes in steel costs . impact of the covid-19 p andemic on o ur business while the covid-19 pandemic has not had a material adverse effect on our reported results for the year ended december 31 , 2020 , we are unable to predict the ultimate impact that the covid-19 pandemic may have on our business , future results of operations , financial position , or cash flows . for additional details , refer to the information set forth under the caption “ impact of the covid‑19 pandemic on our business ” in part i — item 1 . “ business ” and discussions in part i — item 1a . “ risk factors ” of this 2020 form 10-k. results of operations the following table sets forth , for the periods indicated , certain financial information regarding costs and expenses expressed in dollars ( in thousands ) and as a percentage of total net sales . replace_table_token_3_th 21 we have one operating segment , water infrastructure , which produces high-quality engineered steel water pipe , precast and reinforced concrete products , permalok® steel casing pipe , bar-wrapped concrete cylinder pipe , as well as linings , coatings , joints , fittings , and specialized components . these products are primarily used in water infrastructure including water transmission , water and wastewater plant piping , structural stormwater and sewer systems , trenchless technology , and pipeline rehabilitation . see note 3 of the notes to consolidated financial statements in part ii — item 8 . “ financial statements and supplementary data ” of this 2020 form 10-k for information on our acquisition of geneva in january 2020. year ended december 31 , 20 20 compared to year ended december 31 , 201 9 net sales . net sales increased 2.4 % to $ 285.9 million in 2020 compared to $ 279.3 million in 2019 as the $ 44.2 million contribution from our acquired geneva operations was nearly entirely offset by the decrease in net sales at our legacy steel pipe facilities . the decrease at our legacy steel pipe facilities was due to a 28 % decrease in tons produced resulting from changes in project timing , partially offset by a 20 % increase in selling price per ton due to a change in product mix . additionally , the pandemic-related shut-down of our slrc facility negatively impacted our sales in the second quarter of 2020. bidding activity , backlog , and production levels may vary significantly from period to period affecting sales volumes . gross profit . gross profit increased 7.1 % to $ 50.5 million ( 17.7 % of net sales ) in 2020 compared to $ 47.2 million ( 16.9 % of net sales ) in 2019. the increase in gross profit was due to the addition of the acquired geneva operations and improved product pricing at our legacy steel pipe facilities , partially offset by lower production volume at our legacy steel pipe facilities and amortization and other acquisition-related accounting adjustments resulting from the purchase accounting of geneva . additionally , as a result of the fire at our saginaw facility in april 2019 , $ 1.4 million of business interruption insurance recovery ( net of incremental production costs ) was recorded in 2020 , compared to $ 1.6 million of incremental production costs ( net of business interruption insurance recovery ) in 2019. selling , general , and administrative expense . selling , general , and administrative expense increased 34.9 % to $ 25.0 million ( 8.8 % of net sales ) in 2020 compared to $ 18.5 million ( 6.6 % of net sales ) in 2019. the increase in selling , general , and administrative expense was primarily due to the addition of geneva , including $ 2.7 million in higher compensation-related expense , $ 2.0 million in higher acquisition-related transaction costs , and $ 0.9 million in higher intangible amortization expense . in addition , we incurred $ 0.8 million in higher administrative expense . other income . in 2020 and 2019 , we recognized gains on insurance proceeds of $ 1.0 million and $ 1.6 million , respectively , for property damage resulting from the fire at our saginaw facility . in august 2019 , we received $ 2.3 million of proceeds related to a favorable legal settlement involving certain pipe produced at our former houston , texas and bossier city , louisiana facilities . income taxes . income tax expense was $ 6.6 million in 2020 ( an effective income tax rate of 25.7 % ) compared to $ 4.7 million in 2019 ( an effective income tax rate of 14.5 % ) . the effective income tax rate for 2020 was primarily impacted by costs associated with the acquisition of geneva that are expected to be non-deductible for tax purposes . the effective income tax rate for 2019 was primarily impacted by the estimated changes in our valuation allowance . story_separator_special_tag in testing goodwill for impairment , we have the option to perform a qualitative assessment to determine whether the existence of events or circumstances indicate that it is more-likely-than-not ( more than 50 % ) that the fair value of a reporting unit is less than its carrying amount . when performing a qualitative assessment , we evaluate factors such as industry and market conditions , cost factors , overall financial performance , and other relevant entity specific events and changes . in the evaluation , we look at the long-term prospects for the reporting unit and recognize that current performance may not be the best indicator of future prospects or value , which requires management judgment . if the qualitative assessment indicates that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount , or if we choose not to perform the qualitative assessment , then a quantitative assessment is performed to determine the reporting unit 's fair value . the fair value calculation uses a combination of income and market approaches . the income approach is based upon projected future after-tax cash flows discounted to present value using factors that consider the timing and risk associated with the future after-tax cash flows . the market approach is based upon historical and or forward-looking measures using multiples of revenue or earnings before interest , tax , depreciation , and amortization . we utilize a weighted average of the income and market approaches . if the reporting unit 's carrying value exceeds its fair value , then an impairment loss is recognized for the amount of the excess of the carrying amount over the reporting unit 's fair value , not to exceed the total amount of goodwill allocated to the reporting unit . inventories inventories are stated at the lower of cost and net realizable value . determining net realizable value of inventories involves judgments and assumptions , including projecting selling prices and cost of sales . to estimate net realizable value , we review recent sales and gross profit history , existing customer orders , current contract prices , industry supply and demand , forecasted steel prices , replacement costs , seasonal factors , general economic trends , and other information , as applicable . if future market conditions are less favorable than those projected by us , inventory write-downs may be required . the cost of raw material inventories of steel is either on a specific identification basis or on an average cost basis . the cost of all other raw material inventories , as well as work-in-process and supplies , is on an average cost basis . the cost of finished goods uses the first-in , first-out method of accounting . property and equipment property and equipment are recorded at cost , and are depreciated using either the units of production method or the straight-line method depending on the classification of the asset . depreciation expense calculated under the units of production method may be less than , equal to , or greater than depreciation expense calculated under the straight-line method . we evaluate historical and projected units of production at each plant to reassess the units of production expected on an annual basis . we assess impairment of property and equipment whenever changes in circumstances indicate that the carrying values of the asset or asset group ( s ) may not be recoverable . the recoverable value of a long-lived asset group is determined by estimating future undiscounted cash flows using assumptions about our expected future operating performance . estimates of future cash flows used in the recoverability test incorporate our own assumptions about the use of the asset group and shall consider all available evidence . our estimates of undiscounted cash flows may differ from actual cash flow due to , among other things , technological changes , economic conditions , or changes to our business operations . if we determine the carrying value of the property and equipment will not be recoverable , we calculate and record an impairment loss . 26 share-based compensation we recognize the compensation cost of employee and director services received in exchange for awards of equity instruments based on the grant date estimated fair value of the awards . we estimate the fair value of restricted stock units and performance share awards using the value of our stock on the date of grant . share-based compensation cost is recognized over the period during which the employee or director is required to provide service in exchange for the award and , as forfeitures occur , the associated compensation cost recognized to date is reversed . for awards with performance-based payout conditions , we recognize compensation cost based on the probability of achieving the performance conditions , with changes in expectations recognized as an adjustment to earnings in the period of change . any recognized compensation cost is reversed if the conditions are ultimately not met . income taxes income taxes are recorded using an asset and liability approach that requires the recognition of deferred income tax assets and liabilities for the expected future tax consequences of events that have been recognized in our consolidated financial statements or income tax returns . valuation allowances are established when necessary to reduce deferred income tax assets to the amount expected to be realized . the determination of our provision for income taxes requires significant judgment , the use of estimates , and the interpretation and application of complex tax laws . our provision for income taxes primarily reflects a combination of income earned and taxed in the various united states federal , state , local , and to a lesser extent , foreign jurisdictions . jurisdictional tax law changes , increases or decreases in permanent differences between book and tax items , accruals or adjustments of accruals for unrecognized income tax benefits or valuation allowances , and our change in the mix of earnings from

net cash provided by operating activities net cash provided by operating activities was $ 56.1 million in 2020 compared to $ 42.9 million in 2019. net income , adjusted for non-cash items , generated $ 40.3 million of operating cash flow in 2020 compared to $ 45.7 million in 2019. the net change in working capital resulted in an increase to net cash provided by operations of $ 15.7 million in 2020 compared to a decrease of $ 2.8 million in 2019. net cash used in investing activities net cash used in investing activities was $ 61.4 million in 2020 compared to $ 6.4 million in 2019. net cash used in investing activities in 2020 includes the acquisition of geneva of $ 48.7 million , net of cash acquired . capital expenditures were $ 14.0 million in 2020 compared to $ 8.6 million in 2019. the 2019 capital expenditures associated with the rebuilding of assets lost in the april 2019 fire at our saginaw , texas facility were recovered through insurance proceeds of $ 1.4 million in 2020 and $ 2.1 million in 2019. we currently expect capital expenditures in 2021 to be approximately $ 12 million to $ 15 million primarily for standard capital replacement . net cash provided by ( used in ) financing activities net cash provided by ( used in ) financing activities was $ 12.3 million in 2020 compared to $ ( 12.1 ) million in 2019. net borrowings on long-term debt were $ 13.8 million in 2020. there were no net borrowings ( repayments ) on the line of credit in 2020 compared to $ ( 11.5 ) million in 2019. we anticipate that our existing cash and cash equivalents , cash flows expected to be generated by operations , and amounts available under the amended credit agreement will be adequate to fund our working capital , debt service , and capital expenditure requirements for at least the next twelve months . to the extent necessary , we may also satisfy capital requirements through additional bank borrowings , senior notes , term notes , subordinated debt , and finance and operating leases , if such resources are available on satisfactory terms .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 was $ 56.1 million in 2020 compared to $ 42.9 million in 2019. net income , adjusted for non-cash items , generated $ 40.3 million of operating cash flow in 2020 compared to $ 45.7 million in 2019. the net change in working capital resulted in an increase to net cash provided by operations of $ 15.7 million in 2020 compared to a decrease of $ 2.8 million in 2019. net cash used in investing activities net cash used in investing activities was $ 61.4 million in 2020 compared to $ 6.4 million in 2019. net cash used in investing activities in 2020 includes the acquisition of geneva of $ 48.7 million , net of cash acquired . capital expenditures were $ 14.0 million in 2020 compared to $ 8.6 million in 2019. the 2019 capital expenditures associated with the rebuilding of assets lost in the april 2019 fire at our saginaw , texas facility were recovered through insurance proceeds of $ 1.4 million in 2020 and $ 2.1 million in 2019. we currently expect capital expenditures in 2021 to be approximately $ 12 million to $ 15 million primarily for standard capital replacement . net cash provided by ( used in ) financing activities net cash provided by ( used in ) financing activities was $ 12.3 million in 2020 compared to $ ( 12.1 ) million in 2019. net borrowings on long-term debt were $ 13.8 million in 2020. there were no net borrowings ( repayments ) on the line of credit in 2020 compared to $ ( 11.5 ) million in 2019. we anticipate that our existing cash and cash equivalents , cash flows expected to be generated by operations , and amounts available under the amended credit agreement will be adequate to fund our working capital , debt service , and capital expenditure requirements for at least the next twelve months . to the extent necessary , we may also satisfy capital requirements through additional bank borrowings , senior notes , term notes , subordinated debt , and finance and operating leases , if such resources are available on satisfactory terms . ``` Suspicious Activity Report : within the total range of products , our steel pipe tends to fit larger-diameter , higher-pressure pipeline applications , while our precast concrete products mainly serve stormwater and sanitary sewer systems . our current economic environment we operate our business with a long-term time horizon . projects are often planned for many years in advance , and are sometimes part of 50-year build-out plans . long-term demand for water infrastructure projects in the united states appears strong . however , in the near term , we expect that strained governmental and water agency budgets and financing along with increased manufacturing capacity from competition could impact the business . fluctuating steel costs will also be a factor , as the ability to adjust our selling prices as steel costs fluctuate depends on market conditions . purchased steel represents a substantial portion of our cost of sales , and changes in our selling prices often correlate directly to changes in steel costs . impact of the covid-19 p andemic on o ur business while the covid-19 pandemic has not had a material adverse effect on our reported results for the year ended december 31 , 2020 , we are unable to predict the ultimate impact that the covid-19 pandemic may have on our business , future results of operations , financial position , or cash flows . for additional details , refer to the information set forth under the caption “ impact of the covid‑19 pandemic on our business ” in part i — item 1 . “ business ” and discussions in part i — item 1a . “ risk factors ” of this 2020 form 10-k. results of operations the following table sets forth , for the periods indicated , certain financial information regarding costs and expenses expressed in dollars ( in thousands ) and as a percentage of total net sales . replace_table_token_3_th 21 we have one operating segment , water infrastructure , which produces high-quality engineered steel water pipe , precast and reinforced concrete products , permalok® steel casing pipe , bar-wrapped concrete cylinder pipe , as well as linings , coatings , joints , fittings , and specialized components . these products are primarily used in water infrastructure including water transmission , water and wastewater plant piping , structural stormwater and sewer systems , trenchless technology , and pipeline rehabilitation . see note 3 of the notes to consolidated financial statements in part ii — item 8 . “ financial statements and supplementary data ” of this 2020 form 10-k for information on our acquisition of geneva in january 2020. year ended december 31 , 20 20 compared to year ended december 31 , 201 9 net sales . net sales increased 2.4 % to $ 285.9 million in 2020 compared to $ 279.3 million in 2019 as the $ 44.2 million contribution from our acquired geneva operations was nearly entirely offset by the decrease in net sales at our legacy steel pipe facilities . the decrease at our legacy steel pipe facilities was due to a 28 % decrease in tons produced resulting from changes in project timing , partially offset by a 20 % increase in selling price per ton due to a change in product mix . additionally , the pandemic-related shut-down of our slrc facility negatively impacted our sales in the second quarter of 2020. bidding activity , backlog , and production levels may vary significantly from period to period affecting sales volumes . gross profit . gross profit increased 7.1 % to $ 50.5 million ( 17.7 % of net sales ) in 2020 compared to $ 47.2 million ( 16.9 % of net sales ) in 2019. the increase in gross profit was due to the addition of the acquired geneva operations and improved product pricing at our legacy steel pipe facilities , partially offset by lower production volume at our legacy steel pipe facilities and amortization and other acquisition-related accounting adjustments resulting from the purchase accounting of geneva . additionally , as a result of the fire at our saginaw facility in april 2019 , $ 1.4 million of business interruption insurance recovery ( net of incremental production costs ) was recorded in 2020 , compared to $ 1.6 million of incremental production costs ( net of business interruption insurance recovery ) in 2019. selling , general , and administrative expense . selling , general , and administrative expense increased 34.9 % to $ 25.0 million ( 8.8 % of net sales ) in 2020 compared to $ 18.5 million ( 6.6 % of net sales ) in 2019. the increase in selling , general , and administrative expense was primarily due to the addition of geneva , including $ 2.7 million in higher compensation-related expense , $ 2.0 million in higher acquisition-related transaction costs , and $ 0.9 million in higher intangible amortization expense . in addition , we incurred $ 0.8 million in higher administrative expense . other income . in 2020 and 2019 , we recognized gains on insurance proceeds of $ 1.0 million and $ 1.6 million , respectively , for property damage resulting from the fire at our saginaw facility . in august 2019 , we received $ 2.3 million of proceeds related to a favorable legal settlement involving certain pipe produced at our former houston , texas and bossier city , louisiana facilities . income taxes . income tax expense was $ 6.6 million in 2020 ( an effective income tax rate of 25.7 % ) compared to $ 4.7 million in 2019 ( an effective income tax rate of 14.5 % ) . the effective income tax rate for 2020 was primarily impacted by costs associated with the acquisition of geneva that are expected to be non-deductible for tax purposes . the effective income tax rate for 2019 was primarily impacted by the estimated changes in our valuation allowance . story_separator_special_tag in testing goodwill for impairment , we have the option to perform a qualitative assessment to determine whether the existence of events or circumstances indicate that it is more-likely-than-not ( more than 50 % ) that the fair value of a reporting unit is less than its carrying amount . when performing a qualitative assessment , we evaluate factors such as industry and market conditions , cost factors , overall financial performance , and other relevant entity specific events and changes . in the evaluation , we look at the long-term prospects for the reporting unit and recognize that current performance may not be the best indicator of future prospects or value , which requires management judgment . if the qualitative assessment indicates that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount , or if we choose not to perform the qualitative assessment , then a quantitative assessment is performed to determine the reporting unit 's fair value . the fair value calculation uses a combination of income and market approaches . the income approach is based upon projected future after-tax cash flows discounted to present value using factors that consider the timing and risk associated with the future after-tax cash flows . the market approach is based upon historical and or forward-looking measures using multiples of revenue or earnings before interest , tax , depreciation , and amortization . we utilize a weighted average of the income and market approaches . if the reporting unit 's carrying value exceeds its fair value , then an impairment loss is recognized for the amount of the excess of the carrying amount over the reporting unit 's fair value , not to exceed the total amount of goodwill allocated to the reporting unit . inventories inventories are stated at the lower of cost and net realizable value . determining net realizable value of inventories involves judgments and assumptions , including projecting selling prices and cost of sales . to estimate net realizable value , we review recent sales and gross profit history , existing customer orders , current contract prices , industry supply and demand , forecasted steel prices , replacement costs , seasonal factors , general economic trends , and other information , as applicable . if future market conditions are less favorable than those projected by us , inventory write-downs may be required . the cost of raw material inventories of steel is either on a specific identification basis or on an average cost basis . the cost of all other raw material inventories , as well as work-in-process and supplies , is on an average cost basis . the cost of finished goods uses the first-in , first-out method of accounting . property and equipment property and equipment are recorded at cost , and are depreciated using either the units of production method or the straight-line method depending on the classification of the asset . depreciation expense calculated under the units of production method may be less than , equal to , or greater than depreciation expense calculated under the straight-line method . we evaluate historical and projected units of production at each plant to reassess the units of production expected on an annual basis . we assess impairment of property and equipment whenever changes in circumstances indicate that the carrying values of the asset or asset group ( s ) may not be recoverable . the recoverable value of a long-lived asset group is determined by estimating future undiscounted cash flows using assumptions about our expected future operating performance . estimates of future cash flows used in the recoverability test incorporate our own assumptions about the use of the asset group and shall consider all available evidence . our estimates of undiscounted cash flows may differ from actual cash flow due to , among other things , technological changes , economic conditions , or changes to our business operations . if we determine the carrying value of the property and equipment will not be recoverable , we calculate and record an impairment loss . 26 share-based compensation we recognize the compensation cost of employee and director services received in exchange for awards of equity instruments based on the grant date estimated fair value of the awards . we estimate the fair value of restricted stock units and performance share awards using the value of our stock on the date of grant . share-based compensation cost is recognized over the period during which the employee or director is required to provide service in exchange for the award and , as forfeitures occur , the associated compensation cost recognized to date is reversed . for awards with performance-based payout conditions , we recognize compensation cost based on the probability of achieving the performance conditions , with changes in expectations recognized as an adjustment to earnings in the period of change . any recognized compensation cost is reversed if the conditions are ultimately not met . income taxes income taxes are recorded using an asset and liability approach that requires the recognition of deferred income tax assets and liabilities for the expected future tax consequences of events that have been recognized in our consolidated financial statements or income tax returns . valuation allowances are established when necessary to reduce deferred income tax assets to the amount expected to be realized . the determination of our provision for income taxes requires significant judgment , the use of estimates , and the interpretation and application of complex tax laws . our provision for income taxes primarily reflects a combination of income earned and taxed in the various united states federal , state , local , and to a lesser extent , foreign jurisdictions . jurisdictional tax law changes , increases or decreases in permanent differences between book and tax items , accruals or adjustments of accruals for unrecognized income tax benefits or valuation allowances , and our change in the mix of earnings from

” overview we are a clinical stage biopharmaceutical company pioneering a novel disease-modifying therapeutic approach to treat what we believe to be a key underlying cause of alzheimer 's and other degenerative diseases . our approach is based on the seminal discovery of the presence of porphyromonas gingivalis , or p. gingivalis , and its secreted toxic virulence factor proteases , called gingipains , in the brains of greater than 90 % of more than 100 alzheimer 's patients observed across multiple studies to date . additionally , we have observed that p. gingivalis infection causes alzheimer 's pathology in animal models , and these effects have been successfully treated with a gingipain inhibitor in preclinical studies . our proprietary lead drug candidate , atuzaginstat ( cor388 ) , is an orally administered , brain-penetrating small molecule gingipain inhibitor . atuzaginstat was well-tolerated with no concerning safety signals in our phase 1a and phase 1b clinical trials conducted to date , which enrolled a total of 67 subjects , including nine patients with mild to moderate alzheimer 's disease . we initiated a global phase 2/3 clinical trial of atuzaginstat , called the gain trial , in mild to moderate alzheimer 's patients in april 2019 in the united states and in september 2019 in europe and expect top-line results by the end of 2021. partial clinical hold on february 12 , 2021 the company received a letter from the fda stating that a partial clinical hold has been placed on atuzaginstat ( cor388 ) impacting the open-label extension ( ole ) phase of the company 's ongoing phase 2/3 study , the gain trial . under the hold , no new participants will be enrolled in the ole and currently enrolled ole participants will be discontinued . participants in the fully enrolled ( n=643 ) double-blind , placebo-controlled randomized phase of the gain trial will continue to receive study drug at their assigned dose . the partial clinical hold was initiated following the review of hepatic adverse events in the atuzaginstat trial by the fda . these events have been reversible and without any known long-term adverse effects for the participants . cortexyme will continue to collaborate with the fda on the overall development program for atuzaginstat . for additional information on the various risks posed by the partial clinical hold , please read item 1a . risk factors included in this report . business update regarding covid-19 the current covid-19 pandemic has presented a substantial public health and economic challenge around the world and is affecting our employees , patients , communities and business operations , as well as the u.s. economy and financial markets . the full extent to which the covid-19 pandemic will directly or indirectly impact our business , results of operations and financial condition will depend on future developments that are highly uncertain and can not be accurately predicted , including new information that may emerge concerning covid-19 , the actions taken to contain it or treat its impact and the economic impact on local , regional , national and international markets . to date , our employees , vendors and clinical trial sites have been able to advance our gain clinical trial , complete enrollment and continue the open label extension for eligible patients completing the gain trial . at this time the impact of the covid-19 pandemic has not resulted in changes to our previously stated analysis timelines for the gain trial . we are continuing to assess the potential impact of the covid-19 pandemic on our business and operations , including our expenses , preclinical operations and clinical trials . our office-based employees have been working primarily from home since mid-march 2020 , while ensuring essential staffing levels in our operations remain in place , including maintaining key personnel in our lab facility . we have developed plans to enable all employees to voluntarily return to work in our offices and lab facility which include safety protocols , such as face coverings , social distancing , frequent cleaning , and covid-19 testing . we continue to assess the risks which take into account 61 applicable public health authority and local government guidelines and are designed to ensure community and employee safety . however , the effects of the covid-19 pandemic continue to rapidly evolve and even if our employees more broadly return to work in our offices and lab facility , we may have to resume a more restrictive remote work model , whether as a result of spikes or surges in covid-19 infection or hospitalization rates or public authority mandates . we are not currently experiencing any significant supply chain disruptions and have drug supply for the full gain trial on hand . we have diversified our vendor relationships geographically for both starting materials and manufacturing . however , in the future , the ongoing covid-19 pandemic , may result in the inability of some of our suppliers to deliver drug supplies on a timely basis . we have taken and continues to take proactive measures to maintain the integrity of its ongoing clinical trial . to potentially mitigate some of the risks of covid-19 and based on interest and the ability to maintain milestone timelines , we enrolled approximately an additional 70 subjects in the gain trial . despite these efforts , the covid-19 pandemic could impact timelines , subject follow up visits and study completion . we will continue to monitor the covid-19 situation and its impact on the ability to continue the development of , and seek regulatory approvals for , our product candidates . for additional information on the various risks posed by the covid-19 pandemic , please read item 1a . story_separator_special_tag our ability to use our remaining nols may be further limited if we experience an ownership change in connection with this offering , future offerings or as a result of future changes in our stock ownership . 65 results of operations comparison of the years ended december 31 , 2020 and 2019 the following table summarizes our results of operations for the periods indicated ( dollars in thousands ) : replace_table_token_2_th research and development expenses the following table summarizes our research and development expenses : replace_table_token_3_th for the year ended december 31 , 2020 research and development expenses increased $ 31.1 million or 102.9 % , from 2019. this was primarily due to an increase of $ 18.7 million in expenses for our lead product candidate , atuzaginstat , which is in our phase 2/3 gain clinical trial . this increase is attributed to expenses of $ 10.1 million in clinical trial expense , $ 7.0 million in drug manufacturing costs as we scaled production of atuzaginstat and other clinical costs of approximately $ 1.6 million in support of advancing atuzaginstat 's development through the study . personnel-related expenses , including stock-based compensation , increased by $ 9.4 million due to an increase in headcount as we scaled the gain clinical trial and our clinical manufacturing operating relationships and capabilities during 2020. in addition , we had an increase of $ 2.5 million in research and development expenses related to other preclinical programs currently in development and $ 0.4 million increase in our facilities costs . we expect our gain trial related expenses to decrease in 2021 as the trial concludes with top-line results being reported by the end of 2021. this decrease will be offset to some extent as we start our phase 2 peak trial and advance other pipeline indications through pre-clinical and the clinical trial process . general and administrative expenses for the year ended december 31 , 2020 , general and administrative expenses increased $ 8.6 million , or 96.4 % , from 2019 primarily due to an increase of $ 7.7 million in personnel costs , including stock-based compensation of $ 6.1 million , as a result of an increase in our employee headcount and an increase of $ 1.3 million in insurance , legal , accounting , investor relations and other compliance cost associated with becoming a public company offset by a decrease in travel and entertainment expense of $ 0.4 million due to travel restrictions related to covid-19 . interest income for the year ended december 31 , 2020 , interest income decreased $ 0.1 million or 6.6 % due to a decrease in interest rate yields on the portfolio during the year . 66 story_separator_special_tag roman ; font-style : normal ; text-transform : none ; font-variant : normal ; `` > payments due by period less than one year 1 to 3 years 3 to 5 years more than 5 years total operating and finance leases $ 245 $ 211 $ — $ — $ 456 the terms of certain third party contract organizations for clinical trials , non-clinical studies and testing , manufacturing , and other services and products for operating purposes require us to pay potential future payments based on milestone achievement by the vendor . the amount and timing of the payments under these contracts varies based upon the timing of the services performed . we have not included in this disclosure any such contingent payment obligations as the amount , timing and likelihood of such payments are not known . 68 off-balance sheet arrangements since our inception , we have not engaged in any off-balance sheet arrangements , as defined in the rules and regulations of the securities and exchange commission . indemnification as permitted under delaware law and in accordance with our bylaws , we indemnify our officers and directors for certain events or occurrences while the officer or director is or was serving in such capacity . we are also party to indemnification agreements with our officers and directors . we believe the fair value of the indemnification rights and agreements is minimal . accordingly , we have not recorded any liabilities for these indemnification rights and agreements as of december 31 , 2020 and december 31 , 2019. recent accounting pronouncements adopted in august 2018 , the fasb issued asu 2018-13 , fair value measurement ( topic 820 ) : disclosure framework—changes to the disclosure requirements for fair value measurement . the new guidance changes disclosure requirements related to fair value measurements as part of the disclosure framework project . the disclosure framework project aims to improve the effectiveness of disclosures in the notes to the financial statements by focusing on requirements that clearly communicate the most important information to users of the financial statements . the company adopted this effective january 1 , 2020. the adoption of this pronouncement did not have a material impact on its financial statements or disclosures . in august 2018 , the fasb issued asu no . 2018-15 , intangibles—goodwill and other—internal-use software ( subtopic 350-40 ) ” : customer 's accounting for implementation costs incurred in a cloud computing arrangement that is a service contract ( “ asu 2018-15 ” ) , which clarifies the accounting for implementation costs in cloud computing arrangements . the company adopted the standard prospectively on january 1 , 2020. the adoption of this pronouncement did not have a material impact on its financial statements . recent accounting pronouncements not yet adopted the following are new accounting pronouncements that the company is evaluating for future impacts on its financial statements : financial instruments—credit losses : in june 2016 , the fasb issued asu 2016-13 , financial instruments—credit losses ( topic 326 ) : measurement of credit losses on financial instruments which amends the principles around the recognition of credit losses by mandating entities incorporate an estimate of current expected credit losses when determining the value of certain assets . the guidance also amends

liquidity and capital resources we have incurred cumulative net losses and negative cash flows from operations since our inception and anticipate we will continue to incur net losses for the foreseeable future . as of december 31 , 2020 , we had an accumulated deficit of $ 146.7 million . as of december 31 , 2020 , we had cash , cash equivalents and investments of $ 184.3 million . based on our existing business plan , we believe that our existing cash , cash equivalents and investments will be sufficient to fund our anticipated level of operations through at least 2023. we will continue to require additional capital to develop our drug candidates and fund operations for the foreseeable future . we may seek to raise capital through private or public equity or debt financings , collaborative or other arrangements with other companies , or through other sources of financing . adequate additional funding may not be available to us on acceptable terms or at all . our failure to raise capital as and when needed could have a negative impact on our financial condition and our ability to pursue our business strategies . we anticipate that we will need to raise substantial additional capital , the requirements of which will depend on many factors , including : the progress , costs , trial design , results of and timing of our phase 2/3 gain trial and other clinical trials of atuzaginstat , including our phase 2 peak trial for parkinson 's disease and for potential additional indications that we may pursue beyond alzheimer 's and parkinson 's disease ; the willingness of the fda or ema to accept our phase 2/3 gain trial , as well as data from our completed and planned clinical and preclinical studies and other work , as the basis for review and approval of atuzaginstat for alzheimer 's disease ; the outcome , costs and timing of seeking and obtaining fda , ema and any other regulatory approvals ; the number and characteristics of drug candidates that we pursue ; our ability to manufacture sufficient quantities of our drug candidates ; our need to expand our research and development activities

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources we have incurred cumulative net losses and negative cash flows from operations since our inception and anticipate we will continue to incur net losses for the foreseeable future . as of december 31 , 2020 , we had an accumulated deficit of $ 146.7 million . as of december 31 , 2020 , we had cash , cash equivalents and investments of $ 184.3 million . based on our existing business plan , we believe that our existing cash , cash equivalents and investments will be sufficient to fund our anticipated level of operations through at least 2023. we will continue to require additional capital to develop our drug candidates and fund operations for the foreseeable future . we may seek to raise capital through private or public equity or debt financings , collaborative or other arrangements with other companies , or through other sources of financing . adequate additional funding may not be available to us on acceptable terms or at all . our failure to raise capital as and when needed could have a negative impact on our financial condition and our ability to pursue our business strategies . we anticipate that we will need to raise substantial additional capital , the requirements of which will depend on many factors , including : the progress , costs , trial design , results of and timing of our phase 2/3 gain trial and other clinical trials of atuzaginstat , including our phase 2 peak trial for parkinson 's disease and for potential additional indications that we may pursue beyond alzheimer 's and parkinson 's disease ; the willingness of the fda or ema to accept our phase 2/3 gain trial , as well as data from our completed and planned clinical and preclinical studies and other work , as the basis for review and approval of atuzaginstat for alzheimer 's disease ; the outcome , costs and timing of seeking and obtaining fda , ema and any other regulatory approvals ; the number and characteristics of drug candidates that we pursue ; our ability to manufacture sufficient quantities of our drug candidates ; our need to expand our research and development activities ``` Suspicious Activity Report : ” overview we are a clinical stage biopharmaceutical company pioneering a novel disease-modifying therapeutic approach to treat what we believe to be a key underlying cause of alzheimer 's and other degenerative diseases . our approach is based on the seminal discovery of the presence of porphyromonas gingivalis , or p. gingivalis , and its secreted toxic virulence factor proteases , called gingipains , in the brains of greater than 90 % of more than 100 alzheimer 's patients observed across multiple studies to date . additionally , we have observed that p. gingivalis infection causes alzheimer 's pathology in animal models , and these effects have been successfully treated with a gingipain inhibitor in preclinical studies . our proprietary lead drug candidate , atuzaginstat ( cor388 ) , is an orally administered , brain-penetrating small molecule gingipain inhibitor . atuzaginstat was well-tolerated with no concerning safety signals in our phase 1a and phase 1b clinical trials conducted to date , which enrolled a total of 67 subjects , including nine patients with mild to moderate alzheimer 's disease . we initiated a global phase 2/3 clinical trial of atuzaginstat , called the gain trial , in mild to moderate alzheimer 's patients in april 2019 in the united states and in september 2019 in europe and expect top-line results by the end of 2021. partial clinical hold on february 12 , 2021 the company received a letter from the fda stating that a partial clinical hold has been placed on atuzaginstat ( cor388 ) impacting the open-label extension ( ole ) phase of the company 's ongoing phase 2/3 study , the gain trial . under the hold , no new participants will be enrolled in the ole and currently enrolled ole participants will be discontinued . participants in the fully enrolled ( n=643 ) double-blind , placebo-controlled randomized phase of the gain trial will continue to receive study drug at their assigned dose . the partial clinical hold was initiated following the review of hepatic adverse events in the atuzaginstat trial by the fda . these events have been reversible and without any known long-term adverse effects for the participants . cortexyme will continue to collaborate with the fda on the overall development program for atuzaginstat . for additional information on the various risks posed by the partial clinical hold , please read item 1a . risk factors included in this report . business update regarding covid-19 the current covid-19 pandemic has presented a substantial public health and economic challenge around the world and is affecting our employees , patients , communities and business operations , as well as the u.s. economy and financial markets . the full extent to which the covid-19 pandemic will directly or indirectly impact our business , results of operations and financial condition will depend on future developments that are highly uncertain and can not be accurately predicted , including new information that may emerge concerning covid-19 , the actions taken to contain it or treat its impact and the economic impact on local , regional , national and international markets . to date , our employees , vendors and clinical trial sites have been able to advance our gain clinical trial , complete enrollment and continue the open label extension for eligible patients completing the gain trial . at this time the impact of the covid-19 pandemic has not resulted in changes to our previously stated analysis timelines for the gain trial . we are continuing to assess the potential impact of the covid-19 pandemic on our business and operations , including our expenses , preclinical operations and clinical trials . our office-based employees have been working primarily from home since mid-march 2020 , while ensuring essential staffing levels in our operations remain in place , including maintaining key personnel in our lab facility . we have developed plans to enable all employees to voluntarily return to work in our offices and lab facility which include safety protocols , such as face coverings , social distancing , frequent cleaning , and covid-19 testing . we continue to assess the risks which take into account 61 applicable public health authority and local government guidelines and are designed to ensure community and employee safety . however , the effects of the covid-19 pandemic continue to rapidly evolve and even if our employees more broadly return to work in our offices and lab facility , we may have to resume a more restrictive remote work model , whether as a result of spikes or surges in covid-19 infection or hospitalization rates or public authority mandates . we are not currently experiencing any significant supply chain disruptions and have drug supply for the full gain trial on hand . we have diversified our vendor relationships geographically for both starting materials and manufacturing . however , in the future , the ongoing covid-19 pandemic , may result in the inability of some of our suppliers to deliver drug supplies on a timely basis . we have taken and continues to take proactive measures to maintain the integrity of its ongoing clinical trial . to potentially mitigate some of the risks of covid-19 and based on interest and the ability to maintain milestone timelines , we enrolled approximately an additional 70 subjects in the gain trial . despite these efforts , the covid-19 pandemic could impact timelines , subject follow up visits and study completion . we will continue to monitor the covid-19 situation and its impact on the ability to continue the development of , and seek regulatory approvals for , our product candidates . for additional information on the various risks posed by the covid-19 pandemic , please read item 1a . story_separator_special_tag our ability to use our remaining nols may be further limited if we experience an ownership change in connection with this offering , future offerings or as a result of future changes in our stock ownership . 65 results of operations comparison of the years ended december 31 , 2020 and 2019 the following table summarizes our results of operations for the periods indicated ( dollars in thousands ) : replace_table_token_2_th research and development expenses the following table summarizes our research and development expenses : replace_table_token_3_th for the year ended december 31 , 2020 research and development expenses increased $ 31.1 million or 102.9 % , from 2019. this was primarily due to an increase of $ 18.7 million in expenses for our lead product candidate , atuzaginstat , which is in our phase 2/3 gain clinical trial . this increase is attributed to expenses of $ 10.1 million in clinical trial expense , $ 7.0 million in drug manufacturing costs as we scaled production of atuzaginstat and other clinical costs of approximately $ 1.6 million in support of advancing atuzaginstat 's development through the study . personnel-related expenses , including stock-based compensation , increased by $ 9.4 million due to an increase in headcount as we scaled the gain clinical trial and our clinical manufacturing operating relationships and capabilities during 2020. in addition , we had an increase of $ 2.5 million in research and development expenses related to other preclinical programs currently in development and $ 0.4 million increase in our facilities costs . we expect our gain trial related expenses to decrease in 2021 as the trial concludes with top-line results being reported by the end of 2021. this decrease will be offset to some extent as we start our phase 2 peak trial and advance other pipeline indications through pre-clinical and the clinical trial process . general and administrative expenses for the year ended december 31 , 2020 , general and administrative expenses increased $ 8.6 million , or 96.4 % , from 2019 primarily due to an increase of $ 7.7 million in personnel costs , including stock-based compensation of $ 6.1 million , as a result of an increase in our employee headcount and an increase of $ 1.3 million in insurance , legal , accounting , investor relations and other compliance cost associated with becoming a public company offset by a decrease in travel and entertainment expense of $ 0.4 million due to travel restrictions related to covid-19 . interest income for the year ended december 31 , 2020 , interest income decreased $ 0.1 million or 6.6 % due to a decrease in interest rate yields on the portfolio during the year . 66 story_separator_special_tag roman ; font-style : normal ; text-transform : none ; font-variant : normal ; `` > payments due by period less than one year 1 to 3 years 3 to 5 years more than 5 years total operating and finance leases $ 245 $ 211 $ — $ — $ 456 the terms of certain third party contract organizations for clinical trials , non-clinical studies and testing , manufacturing , and other services and products for operating purposes require us to pay potential future payments based on milestone achievement by the vendor . the amount and timing of the payments under these contracts varies based upon the timing of the services performed . we have not included in this disclosure any such contingent payment obligations as the amount , timing and likelihood of such payments are not known . 68 off-balance sheet arrangements since our inception , we have not engaged in any off-balance sheet arrangements , as defined in the rules and regulations of the securities and exchange commission . indemnification as permitted under delaware law and in accordance with our bylaws , we indemnify our officers and directors for certain events or occurrences while the officer or director is or was serving in such capacity . we are also party to indemnification agreements with our officers and directors . we believe the fair value of the indemnification rights and agreements is minimal . accordingly , we have not recorded any liabilities for these indemnification rights and agreements as of december 31 , 2020 and december 31 , 2019. recent accounting pronouncements adopted in august 2018 , the fasb issued asu 2018-13 , fair value measurement ( topic 820 ) : disclosure framework—changes to the disclosure requirements for fair value measurement . the new guidance changes disclosure requirements related to fair value measurements as part of the disclosure framework project . the disclosure framework project aims to improve the effectiveness of disclosures in the notes to the financial statements by focusing on requirements that clearly communicate the most important information to users of the financial statements . the company adopted this effective january 1 , 2020. the adoption of this pronouncement did not have a material impact on its financial statements or disclosures . in august 2018 , the fasb issued asu no . 2018-15 , intangibles—goodwill and other—internal-use software ( subtopic 350-40 ) ” : customer 's accounting for implementation costs incurred in a cloud computing arrangement that is a service contract ( “ asu 2018-15 ” ) , which clarifies the accounting for implementation costs in cloud computing arrangements . the company adopted the standard prospectively on january 1 , 2020. the adoption of this pronouncement did not have a material impact on its financial statements . recent accounting pronouncements not yet adopted the following are new accounting pronouncements that the company is evaluating for future impacts on its financial statements : financial instruments—credit losses : in june 2016 , the fasb issued asu 2016-13 , financial instruments—credit losses ( topic 326 ) : measurement of credit losses on financial instruments which amends the principles around the recognition of credit losses by mandating entities incorporate an estimate of current expected credit losses when determining the value of certain assets . the guidance also amends

we believe that msrs are being sold at a discount to historical pricing levels , although increased competition for these assets has driven prices higher recently . there can be no assurance that any future investment in excess msrs will generate returns similar to the returns on our current investments in excess msrs . as of the fourth quarter of 2013 , approximately $ 7 trillion of the $ 10 trillion of residential mortgages outstanding has been securitized , according to inside mortgage finance . approximately $ 6 trillion are agency rmbs according to inside mortgage finance , which are securities issued or guaranteed by a u.s. government agency , such as ginnie mae , or by a gse , such as fannie mae or freddie mac . the balance has been securitized by either public trusts or pls , and are referred to as non-agency rmbs . since the financial crisis , there has been significant volatility in the prices for non-agency rmbs , which resulted from a widespread contraction in capital available for this asset class , deteriorating housing fundamentals , and an increase in forced selling by institutional investors ( often in response to rating agency downgrades ) . while the prices of these assets have started to recover from their lows , we believe a meaningful gap still exists between current prices and the recovery value of many non-agency rmbs . accordingly , we believe there are opportunities to acquire non-agency rmbs at attractive risk-adjusted yields , with the potential for meaningful upside if the u.s. economy and housing market continue to strengthen . we believe the value of existing non-agency rmbs may also rise if the number of buyers returns to pre-2007 levels . the primary causes of mark-to-market changes in our rmbs portfolio are changes in interest rates and credit spreads . interest rates have risen significantly in recent months and may continue to increase , although the timing of any further increases is uncertain . in periods of rising interest rates , the rates of prepayments and delinquencies with respect to mortgage loans generally decline . generally , the value of our excess msrs is expected to increase when interest rates rise or delinquencies decline , and the value is expected to decrease when interest rates decline or delinquencies increase , due to the effect of changes in interest rates on prepayment speeds and delinquencies . however , prepayment speeds and delinquencies could increase even in the current interest rate environment , as a result of , among other things , a general economic recovery , government programs intended to foster refinancing activity or other reasons , which could reduce the value of our investments . moreover , the value of our excess msrs is subject to a variety of factors , as described under “risk factors.” in the fourth quarter of 2013 , the fair value of our investments in excess msrs ( directly and through equity method investees ) increased by approximately $ 8.2 million and the weighted average discount rate of the portfolio remained relatively unchanged at 12.5 % . we do not expect changes in interest rates to have a meaningful impact on the net interest spread of our agency arm and non-agency portfolios . our rmbs are primarily floating rate or hybrid ( i.e . , fixed to floating rate ) securities , which we generally finance with floating rate debt . therefore , while rising interest rates will generally result in a higher cost of financing , they will also result in a higher coupon payable on the securities . the net interest spread on our agency arm rmbs portfolio as of december 31 , 2013 was 0.94 % , which was the same as the net interest spread as of september 30 , 2013. the net interest spread on our non-agency rmbs portfolio as of december 31 , 2013 was 2.83 % , compared to 2.85 % as of september 30 , 2013 . 63 credit performance also affects the value of our portfolio . higher rates of delinquency and or defaults can reduce the value of our excess msrs , non-agency rmbs , agency rmbs and consumer loan portfolios . for our excess msrs on agency portfolios and our agency rmbs , delinquency and default rates have an effect similar to prepayment rates . our excess msrs on non-agency rmbs are not affected by delinquency rates because the servicer continues to advance the excess msr until a default occurs on the applicable loan ; defaults have an effect similar to prepayments . for the non-agency rmbs and consumer loans , higher default rates can lead to greater loss of principal . credit spreads continued to decrease , or “tighten , ” in the fourth quarter of 2013 relative to the first three quarters of 2013 , which has had a favorable impact on the value of our securities and loan portfolio . credit spreads measure the yield relative to a specified benchmark that the market demands on securities and loans based on such assets ' credit risk . for a discussion of the way in which interest rates , credit spreads and other market factors affect us , see “quantitative and qualitative disclosures about market risk.” the value of our consumer loan portfolio is influenced by , among other factors , the u.s. macroeconomic environment , and unemployment rates in particular . we believe that losses are highly correlated to unemployment ; therefore , we expect that an improvement in unemployment rates would support the value of our investment , while deterioration in unemployment rates would result in a decline in its value . our portfolio our portfolio is currently composed of servicing related assets , residential securities and loans and other investments , as described in more detail below . story_separator_special_tag net cost of funds excludes facility fees . ( c ) the following types of advances comprise the investment in servicer advances : 72 december 31 , 2013 principal and interest advances $ 1,516,715 escrow advances ( taxes and insurance advances ) 934,525 foreclosure advances 209,890 total $ 2,661,130 replace_table_token_19_th ( a ) story_separator_special_tag valign= `` bottom `` > $ 1,392,612 $ 3,434 $ ( 3,885 ) $ 1,392,161 $ 1,332,954 ( a ) amortized cost basis and carrying value exclude $ 10.6 million of principal receivables as of december 31 , 2013 . ( b ) fair value , which is equal to carrying value for all securities . the following table summarizes the reset dates of our agency arm rmbs portfolio as of december 31 , 2013 ( dollars in thousands ) : replace_table_token_20_th ( a ) of these investments , 90.6 % reset based on 12 month libor index , 1.8 % reset based on 6 month libor index , 0.4 % reset based on 1 month libor , and 7.3 % reset based on the 1 year treasury constant maturity rate . after the initial fixed period , 97.8 % of these securities will reset annually and 2.2 % will reset semi-annually . ( b ) amortized cost basis and carrying value exclude $ 10.6 million of principal receivables as of december 31 , 2013 . ( c ) represents the maximum change in the coupon at the end of the fixed rate period . ( d ) represents the maximum change in the coupon at each reset date subsequent to the first coupon adjustment . ( e ) represents the maximum coupon on the underlying security over its life . ( f ) represents recurrent weighted average months to the next interest rate reset . ( g ) not applicable as 57 of the securities ( 72 % of the current face of this category ) are past the first coupon adjustment period . the remaining 16 securities ( 28 % of the current face of this category ) have a maximum change in the coupon of 5.0 % at the end of the fixed rate period . the following table summarizes the characteristics of our agency arm rmbs portfolio and of the collateral underlying our agency arm rmbs as of december 31 , 2013 ( dollars in thousands ) : 75 replace_table_token_21_th ( a ) the year in which the securities were issued . ( b ) amortized cost basis and carrying value exclude $ 10.6 million of principal receivables as of december 31 , 2013 . ( c ) three month average constant prepayment rate . the following table summarizes the net interest spread of our agency arm rmbs portfolio as of december 31 , 2013 : net interest spread ( a ) weighted average asset yield 1.33 % weighted average funding cost 0.39 % net interest spread 0.94 % ( a ) the entire agency arm rmbs portfolio consists of floating rate securities . see table above for details on rate resets . non-agency rmbs the following table summarizes our non-agency rmbs portfolio as of december 31 , 2013 ( dollars in thousands ) : gross unrealized asset type outstanding face amount amortized cost basis gains losses carrying value ( a ) outstanding repurchase agreements non-agency rmbs $ 872,866 $ 566,760 $ 7,618 $ ( 3,953 ) $ 570,425 $ 287,757 ( a ) fair value , which is equal to carrying value for all securities . the following tables summarize the characteristics of our non-agency rmbs portfolio and of the collateral underlying our non-agency rmbs as of december 31 , 2013 ( dollars in thousands ) : replace_table_token_22_th 76 replace_table_token_23_th ( a ) the year in which the securities were issued . ( b ) ratings provided above were determined by third party rating agencies , represent the most recent credit ratings available as of the reporting date and may not be current . this excludes the ratings of the collateral underlying two bonds with a face amount of $ 6.3 million for which we were unable to obtain rating information . we had no assets that were on negative watch for possible downgrade by at least one rating agency as of december 31 , 2013 . ( c ) the percentage of the outstanding face amount of securities and residual interests that is subordinate to our investments . ( d ) the current amount of interest received on the underlying loans in excess of the interest paid on the securities , as a percentage of the outstanding collateral balance for the quarter ended december 31 , 2013 . ( e ) the weighted average loan size of the underlying collateral is $ 223.7 thousand . this excludes the collateral underlying one bond , due to unavailable information , with a face amount of $ 42.9 million . ( f ) the ratio of original upb of loans still outstanding . ( g ) three month average constant prepayment rate and default rates . ( h ) the percentage of underlying loans that are 90+ days delinquent , or in foreclosure or considered reo . the following table sets forth the geographic diversification of the loans underlying our non-agency rmbs as of december 31 , 2013 ( dollars in thousands ) : replace_table_token_24_th ( a ) represents collateral for which we were unable to obtain geographical information . the following table summarizes the net interest spread of our non-agency rmbs portfolio as of december 31 , 2013 : net interest spread ( a ) weighted average asset yield 4.68 % weighted average funding cost 1.85 % net interest spread 2.83 % ( a ) the non-agency rmbs portfolio consists of 99.2 % floating rate securities and 0.8 % fixed rate securities . real estate loans residential mortgage loans as of december 31 , 2013 , we had approximately $ 57.6 million outstanding face amount of residential mortgage loans . in february

outstanding debt net of restricted cash ( b ) includes working capital ( c ) based on cash basis equity call right in transaction 1 , the buyer also acquired the right , but not the obligation ( the “call right” ) , to purchase additional servicer advances , including the basic fee component of the related msrs , on terms substantially similar to the terms of transaction 1. as in transaction 1 , ( i ) the purchase price for the servicer advances , including the basic fee , will be the outstanding balance of the advances at the time of purchase and ( ii ) the buyer will be obligated to purchase future servicer advances on the related loans . as of december 31 , 2013 , the outstanding balance of the advances subject to the call right was approximately $ 3.1 billion and the upb of the related loans was approximately $ 71.5 billion . we previously acquired an interest in the excess msrs related to these loans , which are in pools 5 , 10 and 12. see above “—our portfolio—servicing related assets—excess msrs.” the call right expires on june 30 , 2014. the buyer exercised the call right , in part , in transaction 2. the outstanding balance of the servicer advances subject to the portion of the call right that was exercised was approximately $ 1.1 billion as of the exercise dates , february 28 , 2014 and march 5 , 2014. if the buyer exercises the call right in full , it expects to fund the total purchase price with approximately $ 2.5 billion of debt and $ 0.3 billion of equity , excluding working capital . as of the date hereof , the buyer has settled $ 1.1 billion of advances related to transaction 2 , which was financed with approximately $ 0.9 billion of debt . the remaining balance of the call right is expected to be settled in the second quarter of 2014. there can be no assurance that the remainder of the call right will be settled .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 net of restricted cash ( b ) includes working capital ( c ) based on cash basis equity call right in transaction 1 , the buyer also acquired the right , but not the obligation ( the “call right” ) , to purchase additional servicer advances , including the basic fee component of the related msrs , on terms substantially similar to the terms of transaction 1. as in transaction 1 , ( i ) the purchase price for the servicer advances , including the basic fee , will be the outstanding balance of the advances at the time of purchase and ( ii ) the buyer will be obligated to purchase future servicer advances on the related loans . as of december 31 , 2013 , the outstanding balance of the advances subject to the call right was approximately $ 3.1 billion and the upb of the related loans was approximately $ 71.5 billion . we previously acquired an interest in the excess msrs related to these loans , which are in pools 5 , 10 and 12. see above “—our portfolio—servicing related assets—excess msrs.” the call right expires on june 30 , 2014. the buyer exercised the call right , in part , in transaction 2. the outstanding balance of the servicer advances subject to the portion of the call right that was exercised was approximately $ 1.1 billion as of the exercise dates , february 28 , 2014 and march 5 , 2014. if the buyer exercises the call right in full , it expects to fund the total purchase price with approximately $ 2.5 billion of debt and $ 0.3 billion of equity , excluding working capital . as of the date hereof , the buyer has settled $ 1.1 billion of advances related to transaction 2 , which was financed with approximately $ 0.9 billion of debt . the remaining balance of the call right is expected to be settled in the second quarter of 2014. there can be no assurance that the remainder of the call right will be settled . ``` Suspicious Activity Report : we believe that msrs are being sold at a discount to historical pricing levels , although increased competition for these assets has driven prices higher recently . there can be no assurance that any future investment in excess msrs will generate returns similar to the returns on our current investments in excess msrs . as of the fourth quarter of 2013 , approximately $ 7 trillion of the $ 10 trillion of residential mortgages outstanding has been securitized , according to inside mortgage finance . approximately $ 6 trillion are agency rmbs according to inside mortgage finance , which are securities issued or guaranteed by a u.s. government agency , such as ginnie mae , or by a gse , such as fannie mae or freddie mac . the balance has been securitized by either public trusts or pls , and are referred to as non-agency rmbs . since the financial crisis , there has been significant volatility in the prices for non-agency rmbs , which resulted from a widespread contraction in capital available for this asset class , deteriorating housing fundamentals , and an increase in forced selling by institutional investors ( often in response to rating agency downgrades ) . while the prices of these assets have started to recover from their lows , we believe a meaningful gap still exists between current prices and the recovery value of many non-agency rmbs . accordingly , we believe there are opportunities to acquire non-agency rmbs at attractive risk-adjusted yields , with the potential for meaningful upside if the u.s. economy and housing market continue to strengthen . we believe the value of existing non-agency rmbs may also rise if the number of buyers returns to pre-2007 levels . the primary causes of mark-to-market changes in our rmbs portfolio are changes in interest rates and credit spreads . interest rates have risen significantly in recent months and may continue to increase , although the timing of any further increases is uncertain . in periods of rising interest rates , the rates of prepayments and delinquencies with respect to mortgage loans generally decline . generally , the value of our excess msrs is expected to increase when interest rates rise or delinquencies decline , and the value is expected to decrease when interest rates decline or delinquencies increase , due to the effect of changes in interest rates on prepayment speeds and delinquencies . however , prepayment speeds and delinquencies could increase even in the current interest rate environment , as a result of , among other things , a general economic recovery , government programs intended to foster refinancing activity or other reasons , which could reduce the value of our investments . moreover , the value of our excess msrs is subject to a variety of factors , as described under “risk factors.” in the fourth quarter of 2013 , the fair value of our investments in excess msrs ( directly and through equity method investees ) increased by approximately $ 8.2 million and the weighted average discount rate of the portfolio remained relatively unchanged at 12.5 % . we do not expect changes in interest rates to have a meaningful impact on the net interest spread of our agency arm and non-agency portfolios . our rmbs are primarily floating rate or hybrid ( i.e . , fixed to floating rate ) securities , which we generally finance with floating rate debt . therefore , while rising interest rates will generally result in a higher cost of financing , they will also result in a higher coupon payable on the securities . the net interest spread on our agency arm rmbs portfolio as of december 31 , 2013 was 0.94 % , which was the same as the net interest spread as of september 30 , 2013. the net interest spread on our non-agency rmbs portfolio as of december 31 , 2013 was 2.83 % , compared to 2.85 % as of september 30 , 2013 . 63 credit performance also affects the value of our portfolio . higher rates of delinquency and or defaults can reduce the value of our excess msrs , non-agency rmbs , agency rmbs and consumer loan portfolios . for our excess msrs on agency portfolios and our agency rmbs , delinquency and default rates have an effect similar to prepayment rates . our excess msrs on non-agency rmbs are not affected by delinquency rates because the servicer continues to advance the excess msr until a default occurs on the applicable loan ; defaults have an effect similar to prepayments . for the non-agency rmbs and consumer loans , higher default rates can lead to greater loss of principal . credit spreads continued to decrease , or “tighten , ” in the fourth quarter of 2013 relative to the first three quarters of 2013 , which has had a favorable impact on the value of our securities and loan portfolio . credit spreads measure the yield relative to a specified benchmark that the market demands on securities and loans based on such assets ' credit risk . for a discussion of the way in which interest rates , credit spreads and other market factors affect us , see “quantitative and qualitative disclosures about market risk.” the value of our consumer loan portfolio is influenced by , among other factors , the u.s. macroeconomic environment , and unemployment rates in particular . we believe that losses are highly correlated to unemployment ; therefore , we expect that an improvement in unemployment rates would support the value of our investment , while deterioration in unemployment rates would result in a decline in its value . our portfolio our portfolio is currently composed of servicing related assets , residential securities and loans and other investments , as described in more detail below . story_separator_special_tag net cost of funds excludes facility fees . ( c ) the following types of advances comprise the investment in servicer advances : 72 december 31 , 2013 principal and interest advances $ 1,516,715 escrow advances ( taxes and insurance advances ) 934,525 foreclosure advances 209,890 total $ 2,661,130 replace_table_token_19_th ( a ) story_separator_special_tag valign= `` bottom `` > $ 1,392,612 $ 3,434 $ ( 3,885 ) $ 1,392,161 $ 1,332,954 ( a ) amortized cost basis and carrying value exclude $ 10.6 million of principal receivables as of december 31 , 2013 . ( b ) fair value , which is equal to carrying value for all securities . the following table summarizes the reset dates of our agency arm rmbs portfolio as of december 31 , 2013 ( dollars in thousands ) : replace_table_token_20_th ( a ) of these investments , 90.6 % reset based on 12 month libor index , 1.8 % reset based on 6 month libor index , 0.4 % reset based on 1 month libor , and 7.3 % reset based on the 1 year treasury constant maturity rate . after the initial fixed period , 97.8 % of these securities will reset annually and 2.2 % will reset semi-annually . ( b ) amortized cost basis and carrying value exclude $ 10.6 million of principal receivables as of december 31 , 2013 . ( c ) represents the maximum change in the coupon at the end of the fixed rate period . ( d ) represents the maximum change in the coupon at each reset date subsequent to the first coupon adjustment . ( e ) represents the maximum coupon on the underlying security over its life . ( f ) represents recurrent weighted average months to the next interest rate reset . ( g ) not applicable as 57 of the securities ( 72 % of the current face of this category ) are past the first coupon adjustment period . the remaining 16 securities ( 28 % of the current face of this category ) have a maximum change in the coupon of 5.0 % at the end of the fixed rate period . the following table summarizes the characteristics of our agency arm rmbs portfolio and of the collateral underlying our agency arm rmbs as of december 31 , 2013 ( dollars in thousands ) : 75 replace_table_token_21_th ( a ) the year in which the securities were issued . ( b ) amortized cost basis and carrying value exclude $ 10.6 million of principal receivables as of december 31 , 2013 . ( c ) three month average constant prepayment rate . the following table summarizes the net interest spread of our agency arm rmbs portfolio as of december 31 , 2013 : net interest spread ( a ) weighted average asset yield 1.33 % weighted average funding cost 0.39 % net interest spread 0.94 % ( a ) the entire agency arm rmbs portfolio consists of floating rate securities . see table above for details on rate resets . non-agency rmbs the following table summarizes our non-agency rmbs portfolio as of december 31 , 2013 ( dollars in thousands ) : gross unrealized asset type outstanding face amount amortized cost basis gains losses carrying value ( a ) outstanding repurchase agreements non-agency rmbs $ 872,866 $ 566,760 $ 7,618 $ ( 3,953 ) $ 570,425 $ 287,757 ( a ) fair value , which is equal to carrying value for all securities . the following tables summarize the characteristics of our non-agency rmbs portfolio and of the collateral underlying our non-agency rmbs as of december 31 , 2013 ( dollars in thousands ) : replace_table_token_22_th 76 replace_table_token_23_th ( a ) the year in which the securities were issued . ( b ) ratings provided above were determined by third party rating agencies , represent the most recent credit ratings available as of the reporting date and may not be current . this excludes the ratings of the collateral underlying two bonds with a face amount of $ 6.3 million for which we were unable to obtain rating information . we had no assets that were on negative watch for possible downgrade by at least one rating agency as of december 31 , 2013 . ( c ) the percentage of the outstanding face amount of securities and residual interests that is subordinate to our investments . ( d ) the current amount of interest received on the underlying loans in excess of the interest paid on the securities , as a percentage of the outstanding collateral balance for the quarter ended december 31 , 2013 . ( e ) the weighted average loan size of the underlying collateral is $ 223.7 thousand . this excludes the collateral underlying one bond , due to unavailable information , with a face amount of $ 42.9 million . ( f ) the ratio of original upb of loans still outstanding . ( g ) three month average constant prepayment rate and default rates . ( h ) the percentage of underlying loans that are 90+ days delinquent , or in foreclosure or considered reo . the following table sets forth the geographic diversification of the loans underlying our non-agency rmbs as of december 31 , 2013 ( dollars in thousands ) : replace_table_token_24_th ( a ) represents collateral for which we were unable to obtain geographical information . the following table summarizes the net interest spread of our non-agency rmbs portfolio as of december 31 , 2013 : net interest spread ( a ) weighted average asset yield 4.68 % weighted average funding cost 1.85 % net interest spread 2.83 % ( a ) the non-agency rmbs portfolio consists of 99.2 % floating rate securities and 0.8 % fixed rate securities . real estate loans residential mortgage loans as of december 31 , 2013 , we had approximately $ 57.6 million outstanding face amount of residential mortgage loans . in february

this discussion and analysis and other parts of this annual report contain forward-looking statements based upon current beliefs , plans and expectations that involve risks , uncertainties and assumptions , such as statements regarding our plans , objectives , expectations , intentions and projections . our actual results and the timing of selected events could differ materially from those anticipated in these forward-looking statements as a result of several factors , including those set forth under “item 1a . risk factors” . you should carefully read the “risk factors” section of this annual report to gain an understanding of the important factors that could cause actual results to differ materially from our forward-looking statements . please also see the section entitled “special note regarding forward-looking statements.” overview we are a specialty pharmaceutical company focused on the development and commercialization of novel , injectable pain therapies . we are targeting anti-inflammatory and analgesic therapies for the treatment of patients with musculoskeletal conditions , beginning with osteoarthritis , a type of degenerative arthritis , referred to as oa . our broad and diversified portfolio of product candidates addresses the oa pain treatment spectrum , from moderate to severe pain , and provides us with multiple unique opportunities to achieve our goal of commercializing novel , patient-focused pain therapies . our pipeline consists of three proprietary product candidates : fx006 , a sustained-release , intra-articular steroid ; fx007 , a trka receptor antagonist for post-operative pain ; and fx005 , a sustained-release intra-articular p38 map kinase inhibitor . we retain the exclusive worldwide rights to our product candidates . we were incorporated in delaware in november 2007 , and to date we have devoted substantially all of our resources to our development efforts relating to our product candidates , including conducting clinical trials with our product candidates , providing general and administrative support for these operations and protecting our intellectual property . we are a development stage company and do not have 72 any products approved for sale and have not generated any revenue from product sales . from our inception through december 31 , 2013 , we have funded our operations primarily through the sale of our convertible preferred stock and , to a lesser extent , debt financing . from our inception through december 31 , 2013 , we have raised $ 80.0 million from such transactions . on february 18 , 2014 , we completed the initial public offering of our common stock , which resulted in net proceeds to us of approximately $ 67.2 million , after deducting underwriting discounts , commissions and offering costs . we have incurred net losses in each year since our inception in 2007. our net losses were $ 18.2 million , $ 15.0 million and $ 11.4 million for the years ended december 31 , 2013 , 2012 and 2011 , respectively . as of december 31 , 2013 , we had an accumulated deficit of $ 66.2 million . substantially all of our net losses resulted from costs incurred in connection with our development programs and from general and administrative expenses associated with our operations . we expect to continue to incur significant expenses and increasing operating losses for the foreseeable future . we anticipate that our expenses will increase substantially in connection with our ongoing activities , as we : continue the development of our lead product candidate , fx006 , including the planned and future clinical trials ; seek to obtain regulatory approvals for fx006 ; prepare for the potential launch and commercialization of fx006 , if approved ; establish a sales and marketing infrastructure for the commercialization of fx006 , if approved ; expand our development activities and advance additional product candidates ; maintain , expand and protect our intellectual property portfolio ; and add operational , financial and management information systems and personnel , including personnel to support our product development and commercialization efforts and operations as a public company . we do not expect to generate revenue from product sales unless and until we successfully complete development and obtain marketing approval for one or more of our product candidates , which we expect will take a number of years and is subject to significant uncertainty . accordingly , we anticipate that we will need to raise additional capital prior to completing clinical development of fx006 or any of our other product candidates . until such time that we can generate substantial revenue from product sales , if ever , we expect to finance our operating activities through a combination of equity offerings , debt financings , government or other third-party funding and collaborations , and licensing arrangements . however , we may be unable to raise additional funds or enter into such arrangements when needed on favorable terms , or at all , which would have a negative impact on our financial condition and could force us to delay , limit , reduce or terminate our development programs or commercialization efforts or grant to others rights to develop or market product candidates that we would otherwise prefer to develop and market ourselves . failure to receive additional funding could cause us to cease operations , in part or in full . 73 financial overview revenue we have not generated any revenue since our inception . we do not have any products approved for sale , and we do not expect to generate any revenue from the sale of products in the near future . story_separator_special_tag million in personnel and other costs , both offset by a decrease in development expenses related to our fx005 program . the increase of $ 3.8 million in fx006 program expenses related to expenses for our phase 2a clinical trial , which commenced in july 2012 , and our phase 2b dose-ranging clinical trial , which commenced in june 2012 ; additional toxicology studies conducted during the year ended 2012 ; and increased material costs related to our clinical trials . the increase of $ 0.2 million in personnel and other costs primarily related to increased consulting costs and sponsored research costs . the decrease of $ 1.1 million in fx005 program expenses was due to the completion of the phase 2a proof of concept clinical trial in april 2012. general and administrative expenses general and administrative expenses were $ 3.9 million and $ 3.0 million for the years ended december 31 , 2012 and 2011 , respectively . the increase in general and administrative expenses year over year of $ 0.9 million , or 30 % , was primarily due to an increase of $ 0.6 million in salary and related costs from an increase in headcount , and $ 0.3 million in legal fees related to patents for our intellectual property and corporate matters . other income ( expense ) interest income was $ 0.2 million and $ 0.2 million for the years ended december 31 , 2012 and 2011 , respectively . interest income was consistent year over year . other expense was $ 0.2 million and $ 0.3 million for the years ended december 31 , 2012 and 2011 , respectively . the decrease of $ 0.1 million , or 51 % , related to $ 0.2 million of swiss business tax we paid in 2011 , offset by an increase of $ 0.1 million in net amortization of premiums on our marketable securities . story_separator_special_tag 83 contractual obligations the following table discloses aggregate information about our contractual obligations and the periods in which payments are due as of december 31 , 2013 : replace_table_token_11_th ( 1 ) represents the contractually required principal and interest payments on our credit facility in accordance with the required payment schedule and the $ 175,000 final payment to the lender on september 1 , 2016. amounts associated with future interest payments to be made were calculated using the fixed interest rate of 8.0 % per annum . ( 2 ) represents the contractually required payments under our operating lease obligations in existence as of december 31 , 2013 in accordance with the required payment schedule . no assumptions were made with respect to renewing the lease terms at the expiration date of their initial terms . ( 3 ) milestone payments of up to $ 184.0 million will become due under our agreements with astrazeneca as we achieve regulatory and commercial milestones . in addition , we will pay tiered royalties on product sales . we have not included these amounts in this table as we can not estimate or predict when , or if , those amounts will become due . the table above reflects only payment obligations that are fixed or determinable . we enter into contracts in the normal course of business with cros for clinical trials and clinical supply manufacturing , and with vendors for preclinical research studies , research supplies and other services and products for operating purposes . these contracts generally provide for termination on notice , and therefore we believe that our non-cancelable obligations under these agreements are not material . off-balance sheet arrangements during the periods presented , we did not have , nor do we currently have , any off-balance sheet arrangements . recent accounting pronouncements in february 2013 , the financial accounting standards board , or fasb , issued guidance to provide information about the amounts reclassified out of accumulated other comprehensive income , or aoci , by component . an entity is required to present , either on the face of the financial statements or in the notes , 84 significant amounts reclassified out of aoci by the respective line items of net income , but only if the amount reclassified is required to be reclassified in its entirety in the same reporting period . for amounts that are not required to be reclassified in their entirety to net income , an entity is required to cross-reference to other disclosures that provide additional details about those amounts . on january 1 , 2013 , we adopted this standard , which had no impact on our financial position , results of operations or cash flows . in july 2012 , the fasb issued accounting standards update ( asu ) 2012-02 , testing indefinite-lived intangible assets for impairment . the guidance allows companies , at their option , to perform a qualitative assessment of indefinite-lived assets to determine if it is more likely than not that the fair value of the assets exceeds its carrying value . if analysis of the qualitative factors results in the fair value of the indefinite-lived asset exceeding the carrying value , then performing the quantitative assessment is not required . this guidance is effective for interim and annual periods beginning after december 15 , 2012. we adopted this standard on january 1 , 2013 , and it had no impact on our financial position , results of operations or cash flows . jobs act on april 5 , 2012 , the jobs act was enacted . 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 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 have irrevocably elected not to avail

liquidity and capital resources to date , we have not generated any revenue and have incurred losses since our inception in 2007. as of december 31 , 2013 , we had an accumulated deficit of $ 66.2 million . we anticipate that we will continue to incur losses for the foreseeable future . we expect that our research and development and general and administrative expenses will continue to increase and , as a result , we will need additional capital to fund our operations , which we may seek to obtain through one or more equity offerings , debt financings , government or other third-party funding , and licensing or collaboration arrangements . since our inception through december 31 , 2013 , we have funded our operations principally through the receipt of funds from the private placement of $ 80.0 million of equity and debt securities . as of december 31 , 2013 , we had cash and cash equivalents of $ 16.2 million and marketable securities of $ 0.3 million . on february 18 , 2014 , we completed the initial public offering of our common stock , which resulted in net proceeds to us of approximately $ 67.2 million , after deducting underwriting discounts , commissions and offering costs . we anticipate that our existing cash , cash equivalents and marketable securities , including the proceeds we received from our initial public offering , will fund our operations into late 2015. cash in excess of immediate requirements is invested in accordance with our investment policy , primarily with a view to capital preservation . 81 the following table shows a summary of our cash flows for each of the years ended december 31 , 2013 , 2012 and 2011 : replace_table_token_10_th net cash used in operating activities operating activities used $ 16.2 million of cash in 2013. the cash flow used in operating activities resulted primarily from our net loss of $ 18.2 million for the period , offset by net non-cash charges of $ 1.3 million and cash provided by changes in our operating assets and liabilities of $ 0.7 million .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources to date , we have not generated any revenue and have incurred losses since our inception in 2007. as of december 31 , 2013 , we had an accumulated deficit of $ 66.2 million . we anticipate that we will continue to incur losses for the foreseeable future . we expect that our research and development and general and administrative expenses will continue to increase and , as a result , we will need additional capital to fund our operations , which we may seek to obtain through one or more equity offerings , debt financings , government or other third-party funding , and licensing or collaboration arrangements . since our inception through december 31 , 2013 , we have funded our operations principally through the receipt of funds from the private placement of $ 80.0 million of equity and debt securities . as of december 31 , 2013 , we had cash and cash equivalents of $ 16.2 million and marketable securities of $ 0.3 million . on february 18 , 2014 , we completed the initial public offering of our common stock , which resulted in net proceeds to us of approximately $ 67.2 million , after deducting underwriting discounts , commissions and offering costs . we anticipate that our existing cash , cash equivalents and marketable securities , including the proceeds we received from our initial public offering , will fund our operations into late 2015. cash in excess of immediate requirements is invested in accordance with our investment policy , primarily with a view to capital preservation . 81 the following table shows a summary of our cash flows for each of the years ended december 31 , 2013 , 2012 and 2011 : replace_table_token_10_th net cash used in operating activities operating activities used $ 16.2 million of cash in 2013. the cash flow used in operating activities resulted primarily from our net loss of $ 18.2 million for the period , offset by net non-cash charges of $ 1.3 million and cash provided by changes in our operating assets and liabilities of $ 0.7 million . ``` Suspicious Activity Report : this discussion and analysis and other parts of this annual report contain forward-looking statements based upon current beliefs , plans and expectations that involve risks , uncertainties and assumptions , such as statements regarding our plans , objectives , expectations , intentions and projections . our actual results and the timing of selected events could differ materially from those anticipated in these forward-looking statements as a result of several factors , including those set forth under “item 1a . risk factors” . you should carefully read the “risk factors” section of this annual report to gain an understanding of the important factors that could cause actual results to differ materially from our forward-looking statements . please also see the section entitled “special note regarding forward-looking statements.” overview we are a specialty pharmaceutical company focused on the development and commercialization of novel , injectable pain therapies . we are targeting anti-inflammatory and analgesic therapies for the treatment of patients with musculoskeletal conditions , beginning with osteoarthritis , a type of degenerative arthritis , referred to as oa . our broad and diversified portfolio of product candidates addresses the oa pain treatment spectrum , from moderate to severe pain , and provides us with multiple unique opportunities to achieve our goal of commercializing novel , patient-focused pain therapies . our pipeline consists of three proprietary product candidates : fx006 , a sustained-release , intra-articular steroid ; fx007 , a trka receptor antagonist for post-operative pain ; and fx005 , a sustained-release intra-articular p38 map kinase inhibitor . we retain the exclusive worldwide rights to our product candidates . we were incorporated in delaware in november 2007 , and to date we have devoted substantially all of our resources to our development efforts relating to our product candidates , including conducting clinical trials with our product candidates , providing general and administrative support for these operations and protecting our intellectual property . we are a development stage company and do not have 72 any products approved for sale and have not generated any revenue from product sales . from our inception through december 31 , 2013 , we have funded our operations primarily through the sale of our convertible preferred stock and , to a lesser extent , debt financing . from our inception through december 31 , 2013 , we have raised $ 80.0 million from such transactions . on february 18 , 2014 , we completed the initial public offering of our common stock , which resulted in net proceeds to us of approximately $ 67.2 million , after deducting underwriting discounts , commissions and offering costs . we have incurred net losses in each year since our inception in 2007. our net losses were $ 18.2 million , $ 15.0 million and $ 11.4 million for the years ended december 31 , 2013 , 2012 and 2011 , respectively . as of december 31 , 2013 , we had an accumulated deficit of $ 66.2 million . substantially all of our net losses resulted from costs incurred in connection with our development programs and from general and administrative expenses associated with our operations . we expect to continue to incur significant expenses and increasing operating losses for the foreseeable future . we anticipate that our expenses will increase substantially in connection with our ongoing activities , as we : continue the development of our lead product candidate , fx006 , including the planned and future clinical trials ; seek to obtain regulatory approvals for fx006 ; prepare for the potential launch and commercialization of fx006 , if approved ; establish a sales and marketing infrastructure for the commercialization of fx006 , if approved ; expand our development activities and advance additional product candidates ; maintain , expand and protect our intellectual property portfolio ; and add operational , financial and management information systems and personnel , including personnel to support our product development and commercialization efforts and operations as a public company . we do not expect to generate revenue from product sales unless and until we successfully complete development and obtain marketing approval for one or more of our product candidates , which we expect will take a number of years and is subject to significant uncertainty . accordingly , we anticipate that we will need to raise additional capital prior to completing clinical development of fx006 or any of our other product candidates . until such time that we can generate substantial revenue from product sales , if ever , we expect to finance our operating activities through a combination of equity offerings , debt financings , government or other third-party funding and collaborations , and licensing arrangements . however , we may be unable to raise additional funds or enter into such arrangements when needed on favorable terms , or at all , which would have a negative impact on our financial condition and could force us to delay , limit , reduce or terminate our development programs or commercialization efforts or grant to others rights to develop or market product candidates that we would otherwise prefer to develop and market ourselves . failure to receive additional funding could cause us to cease operations , in part or in full . 73 financial overview revenue we have not generated any revenue since our inception . we do not have any products approved for sale , and we do not expect to generate any revenue from the sale of products in the near future . story_separator_special_tag million in personnel and other costs , both offset by a decrease in development expenses related to our fx005 program . the increase of $ 3.8 million in fx006 program expenses related to expenses for our phase 2a clinical trial , which commenced in july 2012 , and our phase 2b dose-ranging clinical trial , which commenced in june 2012 ; additional toxicology studies conducted during the year ended 2012 ; and increased material costs related to our clinical trials . the increase of $ 0.2 million in personnel and other costs primarily related to increased consulting costs and sponsored research costs . the decrease of $ 1.1 million in fx005 program expenses was due to the completion of the phase 2a proof of concept clinical trial in april 2012. general and administrative expenses general and administrative expenses were $ 3.9 million and $ 3.0 million for the years ended december 31 , 2012 and 2011 , respectively . the increase in general and administrative expenses year over year of $ 0.9 million , or 30 % , was primarily due to an increase of $ 0.6 million in salary and related costs from an increase in headcount , and $ 0.3 million in legal fees related to patents for our intellectual property and corporate matters . other income ( expense ) interest income was $ 0.2 million and $ 0.2 million for the years ended december 31 , 2012 and 2011 , respectively . interest income was consistent year over year . other expense was $ 0.2 million and $ 0.3 million for the years ended december 31 , 2012 and 2011 , respectively . the decrease of $ 0.1 million , or 51 % , related to $ 0.2 million of swiss business tax we paid in 2011 , offset by an increase of $ 0.1 million in net amortization of premiums on our marketable securities . story_separator_special_tag 83 contractual obligations the following table discloses aggregate information about our contractual obligations and the periods in which payments are due as of december 31 , 2013 : replace_table_token_11_th ( 1 ) represents the contractually required principal and interest payments on our credit facility in accordance with the required payment schedule and the $ 175,000 final payment to the lender on september 1 , 2016. amounts associated with future interest payments to be made were calculated using the fixed interest rate of 8.0 % per annum . ( 2 ) represents the contractually required payments under our operating lease obligations in existence as of december 31 , 2013 in accordance with the required payment schedule . no assumptions were made with respect to renewing the lease terms at the expiration date of their initial terms . ( 3 ) milestone payments of up to $ 184.0 million will become due under our agreements with astrazeneca as we achieve regulatory and commercial milestones . in addition , we will pay tiered royalties on product sales . we have not included these amounts in this table as we can not estimate or predict when , or if , those amounts will become due . the table above reflects only payment obligations that are fixed or determinable . we enter into contracts in the normal course of business with cros for clinical trials and clinical supply manufacturing , and with vendors for preclinical research studies , research supplies and other services and products for operating purposes . these contracts generally provide for termination on notice , and therefore we believe that our non-cancelable obligations under these agreements are not material . off-balance sheet arrangements during the periods presented , we did not have , nor do we currently have , any off-balance sheet arrangements . recent accounting pronouncements in february 2013 , the financial accounting standards board , or fasb , issued guidance to provide information about the amounts reclassified out of accumulated other comprehensive income , or aoci , by component . an entity is required to present , either on the face of the financial statements or in the notes , 84 significant amounts reclassified out of aoci by the respective line items of net income , but only if the amount reclassified is required to be reclassified in its entirety in the same reporting period . for amounts that are not required to be reclassified in their entirety to net income , an entity is required to cross-reference to other disclosures that provide additional details about those amounts . on january 1 , 2013 , we adopted this standard , which had no impact on our financial position , results of operations or cash flows . in july 2012 , the fasb issued accounting standards update ( asu ) 2012-02 , testing indefinite-lived intangible assets for impairment . the guidance allows companies , at their option , to perform a qualitative assessment of indefinite-lived assets to determine if it is more likely than not that the fair value of the assets exceeds its carrying value . if analysis of the qualitative factors results in the fair value of the indefinite-lived asset exceeding the carrying value , then performing the quantitative assessment is not required . this guidance is effective for interim and annual periods beginning after december 15 , 2012. we adopted this standard on january 1 , 2013 , and it had no impact on our financial position , results of operations or cash flows . jobs act on april 5 , 2012 , the jobs act was enacted . 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 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 have irrevocably elected not to avail

we believe that our ability to increase the number of customers on our platform is an indicator of our market penetration , the growth of our business , and our potential future business opportunities . increasing awareness of our platform and capabilities , coupled with the mainstream adoption of cloud technology , has expanded the diversity of our customer base to include organizations of all sizes across all industries . over time , larger customers have constituted a greater share of our revenue , which has contributed to an increase in average revenue per customer . the number of customers who have greater than $ 100,000 in annual contract value with us was 691 , 443 and 255 as of january 31 , 2018 , 2017 and 2016 , respectively . we expect this trend to continue as larger enterprises recognize the value of our platform and replace their legacy iam infrastructure . we define a customer as a separate and distinct buying entity , such as a company , an educational or government institution , or a distinct business unit of a large company that has an active contract with us or one of our partners to access our platform . dollar-based retention rate our ability to generate revenue is dependent upon our ability to maintain our relationships with our customers and to increase their utilization of our platform . we believe we can achieve these goals by focusing on delivering value and functionality that enables us to both retain our existing customers and expand the number of users and products used within an existing customer . we assess our performance in this area by measuring our dollar-based retention rate . our dollar-based retention rate measures our ability to increase revenue across our existing customer base through expansion of users and products associated with a customer as offset by churn and contraction in the number of users and or products associated with a customer . our dollar-based retention rate is based upon our annual contract value , or acv , which is calculated based on the terms of that customer 's contract and represents the total contracted annual subscription amount as of that period end . we calculate our dollar-based retention rate as of a period end by starting with the acv from all customers as of twelve months prior to such period end , or prior period acv . we then calculate the acv from these same customers as of the current period end , or current period acv . current period acv includes any upsells and is net of contraction or churn over the trailing twelve months but excludes revenue from new customers in the current period . we then divide the total current period acv by the total prior period acv to arrive at our dollar-based retention rate . our dollar-based retention rate has consistently exceeded 120 % , which is primarily attributable to an expansion of users and up-selling additional products within our existing customers . larger enterprises often implement a limited initial deployment of our platform before increasing their deployment on a broader scale . calculated billings calculated billings represent our total revenue plus the change in deferred revenue in the period . calculated billings in any particular period reflects sales to new customers plus subscription renewals and upsells to existing 47 customers , and represent amounts invoiced for subscription , support and professional services . we typically invoice customers in advance in annual installments for subscriptions to our platform . calculated billings increased 62 % in the year ended january 31 , 2018 over the year ended january 31 , 2017 . as our calculated billings continue to grow in absolute terms , we expect our calculated billings growth rate to trend down over time . see the section titled “ selected consolidated financial data and other data—non-gaap financial measures ” for additional information and a reconciliation of calculated billings to total revenue . components of results of operations revenue subscription revenue . subscription revenue primarily consists of fees for access to and usage of our cloud-based platform and related support . we generate subscription fees pursuant to noncancelable contracts with a weighted average duration of 2.4 years as of january 31 , 2018 . subscription revenue is driven primarily by the number of customers , the number of users per customer and the products used . we typically invoice customers in advance in annual installments for subscriptions to our platform . we recognize subscription revenue ratably over the term of the subscription period beginning on the date access to our platform is provided , provided all other revenue recognition criteria have been met . professional services and other . professional services revenue includes fees from assisting customers in implementing and optimizing the use of our products . these services include application configuration , system integration and training services . we generally invoice customers monthly as the work is performed for time and materials arrangements . we generally have standalone value for our professional services and recognize revenue for the estimated fair value as a separate unit of accounting as services are performed or for those fixed-fee contracts , upon completion of the services . overhead allocation and employee compensation costs we allocate shared costs , such as facilities ( including rent , utilities and depreciation on equipment shared by all departments ) , information technology costs , and recruiting costs to all departments based on headcount . as such , allocated shared costs are reflected in each cost of revenue and operating expense category . employee compensation costs include salaries , bonuses , benefits and stock-based compensation for each operating expense category and sales commissions for sales and marketing . cost of revenue and gross margin cost of subscription . cost of subscription primarily consists of expenses related to hosting our services and providing support . story_separator_special_tag the information for each of these quarters has been prepared on the same basis as the audited annual consolidated financial statements included elsewhere in this annual report on form 10-k and , in the opinion of management , includes all adjustments , which consist only of normal recurring adjustments , necessary for the fair presentation of the results of operations for these periods . this data should be read in conjunction with our audited consolidated financial statements and related notes included elsewhere in this annual report on form 10-k. these quarterly results are not necessarily indicative of our results of operations to be expected for any future period . replace_table_token_22_th _ ( 1 ) amounts include stock-based compensation expense as follows : replace_table_token_23_th 57 replace_table_token_24_th quarterly revenue trends our quarterly revenue increased sequentially in each of the periods presented due primarily to increases in the number of new customers as well as expansion within existing customers and sales of new products . we have typically acquired more new customers in the fourth quarter of our fiscal year , though this seasonality is sometimes not immediately apparent in our revenue due to the fact that we recognize subscription revenue over the term of the contract . our contracts have a weighted-average duration of 2.4 years . beginning in the three months ended april 30 , 2016 , we began to see the impact of migrating more of the pricing for our professional services engagements to a time and materials basis . with this change , the impact of fixed fee project completions on professional services revenue was less significant in recent periods and we do not expect a material impact in future periods . quarterly cost of revenue and gross margin trends our quarterly gross margin has generally been increasing due to increasing subscription revenue and related economies of scale combined with the overall growth in our professional services revenue and increased utilization of professional services personnel . quarterly operating expense trends total costs and expenses generally increased sequentially for the fiscal quarters presented , primarily due to the addition of personnel in connection with the expansion of our business . our research and development expenses can fluctuate quarter to quarter based on the timing and extent of capitalizable internal-use software development activities . sales and marketing expenses grew sequentially over the periods . sales and marketing expenses included $ 5.0 million and $ 3.3 million of expenses related to our annual customer conference in the third quarter of fiscal 2018 and 2017 , respectively . our sales and marketing expenses generally increase in the quarter in which the conference is held . general and administrative costs generally increased in recent quarters due to higher outside professional service fees in connection with preparing to be and operating as a public company . 58 non-gaap financial measures in addition to our results determined in accordance with u.s. generally accepted accounting principles , or gaap , we believe the following non-gaap measures are useful in evaluating our operating performance . we use the below referenced non-gaap financial information , collectively , to evaluate our ongoing operations and for internal planning and forecasting purposes . we believe that non-gaap financial information , when taken collectively , may be helpful to investors because it provides consistency and comparability with past financial performance , and assists in comparisons with other companies , some of which use similar non-gaap financial information to supplement their gaap results . the non-gaap financial information is presented for supplemental informational purposes only , and should not be considered a substitute for financial information presented in accordance with gaap , and may be different from similarly-titled non-gaap measures used by other companies . a reconciliation is provided below for each non-gaap financial measure to the most directly comparable financial measure stated in accordance with gaap . investors are encouraged to review the related gaap financial measures and the reconciliation of these non-gaap financial measures to their most directly comparable gaap financial measures . non-gaap gross profit and non-gaap gross margin we define non-gaap gross profit and non-gaap gross margin as gaap gross profit and gaap gross margin , adjusted for stock-based compensation expense and amortization of acquired intangibles . replace_table_token_25_th non-gaap operating loss and non-gaap operating margin we define non-gaap operating loss and non-gaap operating margin as gaap operating loss and gaap operating margin , adjusted for stock-based compensation expense , charitable contributions , amortization of acquired intangibles and acquisition related compensation expense . replace_table_token_26_th 59 free cash flow we define free cash flow as net cash used in operating activities , less cash used for purchases of property and equipment and capitalized internal-use software costs . replace_table_token_27_th calculated billings we define calculated billings as total revenue plus the change in deferred revenue during the period . replace_table_token_28_th liquidity and capital resources as of january 31 , 2018 , our principal sources of liquidity were cash , cash equivalents and short-term investments totaling $ 229.7 million , which were held for working capital purposes , as well as the available balance of our credit facility , described further below . our cash equivalents and investments were comprised primarily of money market funds , u.s. treasury securities , commercial paper and corporate debt securities . we have generated significant operating losses and negative cash flows from operations as reflected in our accumulated deficit and consolidated statements of cash flows . we expect to continue to incur operating losses and negative cash flows from operations for the foreseeable future . 60 in april 2017 , upon completion of our initial public offering , or ipo , we received aggregate proceeds of $ 200.0 million , net of underwriters ' discounts and commissions , before deducting offering costs of approximately $ 5.6 million . historically , we have financed our operations primarily through the net proceeds we received through private sales of equity securities , as well as payments received from customers for subscription and

cash flows the following table summarizes our cash flows for the periods indicated : replace_table_token_29_th operating activities our largest source of operating cash is cash collections from our customers for subscription and professional services . our primary uses of cash from operating activities are for employee-related expenditures , marketing expenses and third-party hosting costs . historically , we have generated negative cash flows from operating activities and have 61 supplemented working capital requirements through net proceeds from the private sale of equity securities and in the current period from the net proceeds of our ipo . during the year ended january 31 , 2018 , cash used in operating activities was $ 25.2 million primarily due to our net loss of $ 114.4 million , adjusted for non-cash charges of $ 76.5 million and net cash inflows of $ 12.7 million provided by changes in our operating assets and liabilities . non-cash charges primarily consisted of stock-based compensation , amortization of deferred commissions , depreciation and amortization of property and equipment and intangible assets , write-off of capitalized internal-use software costs , deferred income taxes and charitable contributions . the primary drivers of the changes in operating assets and liabilities related to a $ 54.9 million increase in deferred revenue , and an increase of $ 7.6 million in accounts payable , accrued compensation and accrued other expenses , offsetby an increase of $ 18.3 million in accounts receivable , a $ 21.4 million increase in deferred commissions and an increase of $ 10.1 million in prepaid expenses and other assets .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash flows the following table summarizes our cash flows for the periods indicated : replace_table_token_29_th operating activities our largest source of operating cash is cash collections from our customers for subscription and professional services . our primary uses of cash from operating activities are for employee-related expenditures , marketing expenses and third-party hosting costs . historically , we have generated negative cash flows from operating activities and have 61 supplemented working capital requirements through net proceeds from the private sale of equity securities and in the current period from the net proceeds of our ipo . during the year ended january 31 , 2018 , cash used in operating activities was $ 25.2 million primarily due to our net loss of $ 114.4 million , adjusted for non-cash charges of $ 76.5 million and net cash inflows of $ 12.7 million provided by changes in our operating assets and liabilities . non-cash charges primarily consisted of stock-based compensation , amortization of deferred commissions , depreciation and amortization of property and equipment and intangible assets , write-off of capitalized internal-use software costs , deferred income taxes and charitable contributions . the primary drivers of the changes in operating assets and liabilities related to a $ 54.9 million increase in deferred revenue , and an increase of $ 7.6 million in accounts payable , accrued compensation and accrued other expenses , offsetby an increase of $ 18.3 million in accounts receivable , a $ 21.4 million increase in deferred commissions and an increase of $ 10.1 million in prepaid expenses and other assets . ``` Suspicious Activity Report : we believe that our ability to increase the number of customers on our platform is an indicator of our market penetration , the growth of our business , and our potential future business opportunities . increasing awareness of our platform and capabilities , coupled with the mainstream adoption of cloud technology , has expanded the diversity of our customer base to include organizations of all sizes across all industries . over time , larger customers have constituted a greater share of our revenue , which has contributed to an increase in average revenue per customer . the number of customers who have greater than $ 100,000 in annual contract value with us was 691 , 443 and 255 as of january 31 , 2018 , 2017 and 2016 , respectively . we expect this trend to continue as larger enterprises recognize the value of our platform and replace their legacy iam infrastructure . we define a customer as a separate and distinct buying entity , such as a company , an educational or government institution , or a distinct business unit of a large company that has an active contract with us or one of our partners to access our platform . dollar-based retention rate our ability to generate revenue is dependent upon our ability to maintain our relationships with our customers and to increase their utilization of our platform . we believe we can achieve these goals by focusing on delivering value and functionality that enables us to both retain our existing customers and expand the number of users and products used within an existing customer . we assess our performance in this area by measuring our dollar-based retention rate . our dollar-based retention rate measures our ability to increase revenue across our existing customer base through expansion of users and products associated with a customer as offset by churn and contraction in the number of users and or products associated with a customer . our dollar-based retention rate is based upon our annual contract value , or acv , which is calculated based on the terms of that customer 's contract and represents the total contracted annual subscription amount as of that period end . we calculate our dollar-based retention rate as of a period end by starting with the acv from all customers as of twelve months prior to such period end , or prior period acv . we then calculate the acv from these same customers as of the current period end , or current period acv . current period acv includes any upsells and is net of contraction or churn over the trailing twelve months but excludes revenue from new customers in the current period . we then divide the total current period acv by the total prior period acv to arrive at our dollar-based retention rate . our dollar-based retention rate has consistently exceeded 120 % , which is primarily attributable to an expansion of users and up-selling additional products within our existing customers . larger enterprises often implement a limited initial deployment of our platform before increasing their deployment on a broader scale . calculated billings calculated billings represent our total revenue plus the change in deferred revenue in the period . calculated billings in any particular period reflects sales to new customers plus subscription renewals and upsells to existing 47 customers , and represent amounts invoiced for subscription , support and professional services . we typically invoice customers in advance in annual installments for subscriptions to our platform . calculated billings increased 62 % in the year ended january 31 , 2018 over the year ended january 31 , 2017 . as our calculated billings continue to grow in absolute terms , we expect our calculated billings growth rate to trend down over time . see the section titled “ selected consolidated financial data and other data—non-gaap financial measures ” for additional information and a reconciliation of calculated billings to total revenue . components of results of operations revenue subscription revenue . subscription revenue primarily consists of fees for access to and usage of our cloud-based platform and related support . we generate subscription fees pursuant to noncancelable contracts with a weighted average duration of 2.4 years as of january 31 , 2018 . subscription revenue is driven primarily by the number of customers , the number of users per customer and the products used . we typically invoice customers in advance in annual installments for subscriptions to our platform . we recognize subscription revenue ratably over the term of the subscription period beginning on the date access to our platform is provided , provided all other revenue recognition criteria have been met . professional services and other . professional services revenue includes fees from assisting customers in implementing and optimizing the use of our products . these services include application configuration , system integration and training services . we generally invoice customers monthly as the work is performed for time and materials arrangements . we generally have standalone value for our professional services and recognize revenue for the estimated fair value as a separate unit of accounting as services are performed or for those fixed-fee contracts , upon completion of the services . overhead allocation and employee compensation costs we allocate shared costs , such as facilities ( including rent , utilities and depreciation on equipment shared by all departments ) , information technology costs , and recruiting costs to all departments based on headcount . as such , allocated shared costs are reflected in each cost of revenue and operating expense category . employee compensation costs include salaries , bonuses , benefits and stock-based compensation for each operating expense category and sales commissions for sales and marketing . cost of revenue and gross margin cost of subscription . cost of subscription primarily consists of expenses related to hosting our services and providing support . story_separator_special_tag the information for each of these quarters has been prepared on the same basis as the audited annual consolidated financial statements included elsewhere in this annual report on form 10-k and , in the opinion of management , includes all adjustments , which consist only of normal recurring adjustments , necessary for the fair presentation of the results of operations for these periods . this data should be read in conjunction with our audited consolidated financial statements and related notes included elsewhere in this annual report on form 10-k. these quarterly results are not necessarily indicative of our results of operations to be expected for any future period . replace_table_token_22_th _ ( 1 ) amounts include stock-based compensation expense as follows : replace_table_token_23_th 57 replace_table_token_24_th quarterly revenue trends our quarterly revenue increased sequentially in each of the periods presented due primarily to increases in the number of new customers as well as expansion within existing customers and sales of new products . we have typically acquired more new customers in the fourth quarter of our fiscal year , though this seasonality is sometimes not immediately apparent in our revenue due to the fact that we recognize subscription revenue over the term of the contract . our contracts have a weighted-average duration of 2.4 years . beginning in the three months ended april 30 , 2016 , we began to see the impact of migrating more of the pricing for our professional services engagements to a time and materials basis . with this change , the impact of fixed fee project completions on professional services revenue was less significant in recent periods and we do not expect a material impact in future periods . quarterly cost of revenue and gross margin trends our quarterly gross margin has generally been increasing due to increasing subscription revenue and related economies of scale combined with the overall growth in our professional services revenue and increased utilization of professional services personnel . quarterly operating expense trends total costs and expenses generally increased sequentially for the fiscal quarters presented , primarily due to the addition of personnel in connection with the expansion of our business . our research and development expenses can fluctuate quarter to quarter based on the timing and extent of capitalizable internal-use software development activities . sales and marketing expenses grew sequentially over the periods . sales and marketing expenses included $ 5.0 million and $ 3.3 million of expenses related to our annual customer conference in the third quarter of fiscal 2018 and 2017 , respectively . our sales and marketing expenses generally increase in the quarter in which the conference is held . general and administrative costs generally increased in recent quarters due to higher outside professional service fees in connection with preparing to be and operating as a public company . 58 non-gaap financial measures in addition to our results determined in accordance with u.s. generally accepted accounting principles , or gaap , we believe the following non-gaap measures are useful in evaluating our operating performance . we use the below referenced non-gaap financial information , collectively , to evaluate our ongoing operations and for internal planning and forecasting purposes . we believe that non-gaap financial information , when taken collectively , may be helpful to investors because it provides consistency and comparability with past financial performance , and assists in comparisons with other companies , some of which use similar non-gaap financial information to supplement their gaap results . the non-gaap financial information is presented for supplemental informational purposes only , and should not be considered a substitute for financial information presented in accordance with gaap , and may be different from similarly-titled non-gaap measures used by other companies . a reconciliation is provided below for each non-gaap financial measure to the most directly comparable financial measure stated in accordance with gaap . investors are encouraged to review the related gaap financial measures and the reconciliation of these non-gaap financial measures to their most directly comparable gaap financial measures . non-gaap gross profit and non-gaap gross margin we define non-gaap gross profit and non-gaap gross margin as gaap gross profit and gaap gross margin , adjusted for stock-based compensation expense and amortization of acquired intangibles . replace_table_token_25_th non-gaap operating loss and non-gaap operating margin we define non-gaap operating loss and non-gaap operating margin as gaap operating loss and gaap operating margin , adjusted for stock-based compensation expense , charitable contributions , amortization of acquired intangibles and acquisition related compensation expense . replace_table_token_26_th 59 free cash flow we define free cash flow as net cash used in operating activities , less cash used for purchases of property and equipment and capitalized internal-use software costs . replace_table_token_27_th calculated billings we define calculated billings as total revenue plus the change in deferred revenue during the period . replace_table_token_28_th liquidity and capital resources as of january 31 , 2018 , our principal sources of liquidity were cash , cash equivalents and short-term investments totaling $ 229.7 million , which were held for working capital purposes , as well as the available balance of our credit facility , described further below . our cash equivalents and investments were comprised primarily of money market funds , u.s. treasury securities , commercial paper and corporate debt securities . we have generated significant operating losses and negative cash flows from operations as reflected in our accumulated deficit and consolidated statements of cash flows . we expect to continue to incur operating losses and negative cash flows from operations for the foreseeable future . 60 in april 2017 , upon completion of our initial public offering , or ipo , we received aggregate proceeds of $ 200.0 million , net of underwriters ' discounts and commissions , before deducting offering costs of approximately $ 5.6 million . historically , we have financed our operations primarily through the net proceeds we received through private sales of equity securities , as well as payments received from customers for subscription and

the increase from fiscal year 2017 to fiscal year 2018 was primarily the result of an increase of $ 5.7 million in banking and service fees due to increased fees from h & r block-branded products , an increase of $ 1.2 million in gain on sale-other primarily from increased sales of structured settlements , and a decrease of $ 1.1 million in unrealized loss on securities partially offset by a decrease in realized gain from sale of securities of $ 3.9 million , decreased levels of prepayment penalty fee income of $ 0.7 million , and a mortgage banking income decrease of $ 0.5 million . the increase from 2016 to 2017 was primarily due to increased banking and service fees due to increased fees from h & r block-branded products increased mortgage banking income , gain on sale of securities , partially offset by a decrease in gain on sale-other primarily from sales of structured settlements . non-interest expense for the fiscal year ended june 30 , 2018 was $ 173.9 million compared to $ 137.6 million and $ 112.8 million for the years ended june 30 , 2017 and 2016 , respectively . the increase was primarily due to an increase of $ 19.2 million in the bank 's staffing for lending , information technology infrastructure development , trustee and fiduciary services and regulatory compliance , an increase in advertising and promotions of $ 6.1 million , an increase in data processing and internet of $ 4.1 million , and an increase in other general and administrative costs of $ 3.4 million . our staffing rose to 801 full-time equivalents compared to 681 and 647 at june 30 , 2018 , 2017 and 2016 , respectively . total assets were $ 9,539.5 million at june 30 , 2018 compared to $ 8,501.7 million at june 30 , 2017 . assets grew $ 1,037.8 million or 12.2 % during the last fiscal year , primarily due to an increase in the origination of single family mortgage loans and c & i loans . these loans were funded primarily with growth in deposits . our future performance will depend on many factors : changes in interest rates , competition for deposits and quality loans , the credit performance of our assets , regulatory actions , strategic transactions , and our ability to improve operating efficiencies . see “ item 1a . risk factors . ” 34 mergers and acquisitions from time to time we undertake acquisitions or similar transactions consistent with our operating and growth strategies . during the fiscal years ended june 30 , 2016 , 2017 and 2018 there were three acquisitions , which are discussed below . h & r block bank deposit acquisition on august 31 , 2015 , our bank completed the acquisition of approximately $ 419 million in deposits consisting of checking , individual retirement savings , and cd accounts from h & r block bank and its parent company , h & r block , inc. ( “ h & r block ” ) . in connection with the closing of this transaction : ( i ) our bank and emerald financial services , llc , a delaware limited liability company and wholly-owned subsidiary of h & r block ( “ efs ” ) , entered into the program management agreement ( “ pma ” ) , dated august 31 , 2015 ; ( ii ) our bank and h & r block , efs , hrb participant i , llc , a delaware limited liability company and wholly-owned subsidiary of h & r block , entered into the emerald receivables participation agreement , dated august 31 , 2015 ; and ( iii ) our bank and h & r block entered into the guaranty agreement ( together , the “ pma and related agreements ” ) , dated august 31 , 2015. through the pma and related agreements our bank will provide h & r block-branded financial services products and services . the three products and services that represent the primary focus and the majority of transactional volume that our bank will process are described in detail below . the first product is emerald prepaid mastercard ® services . the bank entered into agreements to offer this product in august 2015. under the agreements , the bank is responsible for the primary oversight and control of the prepaid card programs of a wholly-owned subsidiary of h & r block . the bank holds the prepaid card customer deposits for those cards issued under the prepaid programs in non-interest bearing accounts and earns a fixed fee paid by h & r block 's subsidiary for each automated clearing house ( “ ach ” ) transaction processed through the prepaid card customer accounts . a portion of h & r block 's customers use the emerald card as an option to receive federal and state income tax refunds . the prepaid customer deposits are included in non-interest bearing deposit liabilities on the balance sheet of the company and the ach fee income is included in the income statement under the line banking and service fees . the second product is refund transfer . the bank entered into agreements to offer this product in august 2015. the bank is responsible for the primary oversight and control of the refund transfer program of a wholly-owned subsidiary of h & r block . the bank opens a temporary bank account for each h & r block customer who is receiving an income tax refund and elects to defer payment of his or her tax preparation fees . after the internal revenue service and any state income tax authorities transfer the refund into the customer 's account , the net funds are transferred to the customer and the temporary deposit account is closed . story_separator_special_tag our net interest income has increased as a result of the growth in our interest earning assets and is subject to competitive factors in the online banking market . our net interest income is reduced by our estimate of loss provisions for our loan and lease portfolio . we also earn non-interest income primarily from mortgage banking activities , banking products and service activity , prepaid card fee income , prepayment fee income from multifamily borrowers who repay their loans before maturity and from gains on sales of other loans and investment securities . losses on investment securities reduce non-interest income . the largest component of non-interest expense is salary and benefits , which is a function of the number of personnel , which increased from 681 full time employees at june 30 , 2017 to 801 full-time equivalent employees at june 30 , 2018 . we are subject to federal and state income taxes , and our effective tax rates were 36.42 % , 42.10 % and 41.78 % for the fiscal years ended june 30 , 2018 , 2017 , and 2016 , respectively . other factors that affect our results of operations include expenses relating to data processing , advertising , depreciation , occupancy , professional services , and other miscellaneous expenses . comparison of the fiscal year ended june 30 , 20 18 and june 30 , 2017 net interest income . net interest income totaled $ 368.5 million for the fiscal year ended june 30 , 2018 compared to $ 313.2 million for the fiscal year ended june 30 , 2017 . the following table sets forth the effects of changing rates and volumes on our net interest income . information is provided with respect to ( i ) effects on interest income and interest expense attributable to changes in volume ( changes in volume multiplied by prior rate ) ; and ( ii ) effects on interest income and interest expense attributable to changes in rate ( changes in rate multiplied by prior volume ) . the change in interest due to both volume and rate has been allocated proportionally to both , based on their relative absolute values . replace_table_token_18_th the change in interest due to both volume and rate has been allocated proportionally to both , based on their relative absolute values . interest income . interest income for the fiscal year ended june 30 , 2018 totaled $ 475.1 million , an increase of $ 87.8 million , or 22.7 % , compared to $ 387.3 million in interest income for the fiscal year ended june 30 , 2017 primarily due to growth in volume of interest-earning assets from loan originations , primarily from commercial & industrial lending as well as accretion from origination fees from refund advance loans . fundings of refund advance loans increased from $ 0.3 billion to $ 1.1 billion for the fiscal years ended june 30 , 2017 and june 30 , 2018 , respectively . average interest-earning assets for the fiscal year ended june 30 , 2018 increased by $ 1,044.5 million compared to the fiscal year ended june 30 , 2017 primarily due to loan and lease originations for investment which increased $ 1,740.1 million during the year ended june 30 , 2018 . yields on loans and leases increased by 40 basis points to 5.66 % for the fiscal year ended june 30 , 2018 , primarily due to increased yields in the single family , commercial & industrial and h & r block-branded loan products . for the fiscal year ended june 30 , 2018 , the growth in average balances contributed additional interest income of $ 52.2 million , which was supplemented by a $ 35.6 million increase in interest income due to the increase in average rate . the average yield earned on our interest-earning assets increased to 5.30 % for the fiscal year ended june 30 , 2018 , up from 4.89 % for the same period in 2017 primarily due to the increase in rate from loans and leases . as a result of the federal reserve decisions to increase the fed funds rate over the last year we have marked up our 40 adjustable loans and have increased the market rates on new loans . a contributing factor to the increase of loans and leases income is the amortization of origination fees for h & r block-branded products . interest expense . interest expense totaled $ 106.6 million for the fiscal year ended june 30 , 2018 , an increase of $ 32.5 million , or 43.9 % compared to $ 74.1 million in interest expense during the fiscal year ended june 30 , 2017 , due primarily to increased rates on deposits and advances , as a result of the federal reserve decisions to increase the fed funds rate over the last year . the average rate paid on all of our interest-bearing liabilities increased to 1.51 % for the fiscal year ended june 30 , 2018 from 1.15 % for the fiscal year ended june 30 , 2017 , due primarily to increased rates on deposits and advances from fhlb . average interest-bearing liabilities for the fiscal year ended june 30 , 2018 increased $ 603.5 million compared to fiscal 2017 . the average rate on interest-bearing deposits increased to 1.15 % from 0.75 % due to increases in prevailing deposit rates across the industry . the rates on advances from the fhlb also increased to 1.76 % from 1.55 % due primarily to the fed rate increases . the average rate on time deposits increased to 2.61 % for the fiscal year ended june 30 , 2018 from 2.33 % for the fiscal year ended june 30 , 2017 , due to fed rate increases . average fhlb advances for the fiscal year ended june 30 , 2018 increased $ 497.1 million , or 62.2 % compared to fiscal 2017. the average non-interest-bearing demand

liquidity and capital resources liquidity . our sources of liquidity include deposits , borrowings , payments and maturities of outstanding loans , sales of loans , maturities or gains on sales of investment securities and other short-term investments . while scheduled loan payments and maturing investment securities and short-term investments are relatively predictable sources of funds , deposit flows and loan prepayments are greatly influenced by general interest rates , economic conditions and competition . we generally invest excess funds in overnight deposits and other short-term interest-earning assets . we use cash generated through retail deposits , our largest funding source , to offset the cash utilized in lending and investing activities . our short-term interest-earning investment securities are also used to provide liquidity for lending and other operational requirements . as an additional source of funds , we have two credit agreements . bofi federal bank can borrow up to 40 % of its total assets from the fhlb . borrowings are collateralized by pledging certain mortgage loans and investment securities to the fhlb . based on loans and securities pledged at june 30 , 2018 , we had a total borrowing availability of approximately $ 1.6 billion available immediately , which represents a fully collateralized position , for advances from the fhlb for terms up to ten years . the bank can also borrow from the discount window at the frb . frb borrowings are collateralized by commercial loans , consumer loans and mortgage-backed securities pledged to the frb . based on loans and securities pledged at june 30 , 2018 , we had a total borrowing capacity of approximately $ 917.0 million , all of which was available for use . at june 30 , 2018 , we also had $ 35.0 million in unsecured fed funds purchase lines with two major banks under which there were no borrowings outstanding . 51 in the past , we have used long-term borrowings to fund our loans and to minimize our interest rate risk . our future borrowings will depend on the growth of our lending operations and our exposure to interest rate risk .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources liquidity . our sources of liquidity include deposits , borrowings , payments and maturities of outstanding loans , sales of loans , maturities or gains on sales of investment securities and other short-term investments . while scheduled loan payments and maturing investment securities and short-term investments are relatively predictable sources of funds , deposit flows and loan prepayments are greatly influenced by general interest rates , economic conditions and competition . we generally invest excess funds in overnight deposits and other short-term interest-earning assets . we use cash generated through retail deposits , our largest funding source , to offset the cash utilized in lending and investing activities . our short-term interest-earning investment securities are also used to provide liquidity for lending and other operational requirements . as an additional source of funds , we have two credit agreements . bofi federal bank can borrow up to 40 % of its total assets from the fhlb . borrowings are collateralized by pledging certain mortgage loans and investment securities to the fhlb . based on loans and securities pledged at june 30 , 2018 , we had a total borrowing availability of approximately $ 1.6 billion available immediately , which represents a fully collateralized position , for advances from the fhlb for terms up to ten years . the bank can also borrow from the discount window at the frb . frb borrowings are collateralized by commercial loans , consumer loans and mortgage-backed securities pledged to the frb . based on loans and securities pledged at june 30 , 2018 , we had a total borrowing capacity of approximately $ 917.0 million , all of which was available for use . at june 30 , 2018 , we also had $ 35.0 million in unsecured fed funds purchase lines with two major banks under which there were no borrowings outstanding . 51 in the past , we have used long-term borrowings to fund our loans and to minimize our interest rate risk . our future borrowings will depend on the growth of our lending operations and our exposure to interest rate risk . ``` Suspicious Activity Report : the increase from fiscal year 2017 to fiscal year 2018 was primarily the result of an increase of $ 5.7 million in banking and service fees due to increased fees from h & r block-branded products , an increase of $ 1.2 million in gain on sale-other primarily from increased sales of structured settlements , and a decrease of $ 1.1 million in unrealized loss on securities partially offset by a decrease in realized gain from sale of securities of $ 3.9 million , decreased levels of prepayment penalty fee income of $ 0.7 million , and a mortgage banking income decrease of $ 0.5 million . the increase from 2016 to 2017 was primarily due to increased banking and service fees due to increased fees from h & r block-branded products increased mortgage banking income , gain on sale of securities , partially offset by a decrease in gain on sale-other primarily from sales of structured settlements . non-interest expense for the fiscal year ended june 30 , 2018 was $ 173.9 million compared to $ 137.6 million and $ 112.8 million for the years ended june 30 , 2017 and 2016 , respectively . the increase was primarily due to an increase of $ 19.2 million in the bank 's staffing for lending , information technology infrastructure development , trustee and fiduciary services and regulatory compliance , an increase in advertising and promotions of $ 6.1 million , an increase in data processing and internet of $ 4.1 million , and an increase in other general and administrative costs of $ 3.4 million . our staffing rose to 801 full-time equivalents compared to 681 and 647 at june 30 , 2018 , 2017 and 2016 , respectively . total assets were $ 9,539.5 million at june 30 , 2018 compared to $ 8,501.7 million at june 30 , 2017 . assets grew $ 1,037.8 million or 12.2 % during the last fiscal year , primarily due to an increase in the origination of single family mortgage loans and c & i loans . these loans were funded primarily with growth in deposits . our future performance will depend on many factors : changes in interest rates , competition for deposits and quality loans , the credit performance of our assets , regulatory actions , strategic transactions , and our ability to improve operating efficiencies . see “ item 1a . risk factors . ” 34 mergers and acquisitions from time to time we undertake acquisitions or similar transactions consistent with our operating and growth strategies . during the fiscal years ended june 30 , 2016 , 2017 and 2018 there were three acquisitions , which are discussed below . h & r block bank deposit acquisition on august 31 , 2015 , our bank completed the acquisition of approximately $ 419 million in deposits consisting of checking , individual retirement savings , and cd accounts from h & r block bank and its parent company , h & r block , inc. ( “ h & r block ” ) . in connection with the closing of this transaction : ( i ) our bank and emerald financial services , llc , a delaware limited liability company and wholly-owned subsidiary of h & r block ( “ efs ” ) , entered into the program management agreement ( “ pma ” ) , dated august 31 , 2015 ; ( ii ) our bank and h & r block , efs , hrb participant i , llc , a delaware limited liability company and wholly-owned subsidiary of h & r block , entered into the emerald receivables participation agreement , dated august 31 , 2015 ; and ( iii ) our bank and h & r block entered into the guaranty agreement ( together , the “ pma and related agreements ” ) , dated august 31 , 2015. through the pma and related agreements our bank will provide h & r block-branded financial services products and services . the three products and services that represent the primary focus and the majority of transactional volume that our bank will process are described in detail below . the first product is emerald prepaid mastercard ® services . the bank entered into agreements to offer this product in august 2015. under the agreements , the bank is responsible for the primary oversight and control of the prepaid card programs of a wholly-owned subsidiary of h & r block . the bank holds the prepaid card customer deposits for those cards issued under the prepaid programs in non-interest bearing accounts and earns a fixed fee paid by h & r block 's subsidiary for each automated clearing house ( “ ach ” ) transaction processed through the prepaid card customer accounts . a portion of h & r block 's customers use the emerald card as an option to receive federal and state income tax refunds . the prepaid customer deposits are included in non-interest bearing deposit liabilities on the balance sheet of the company and the ach fee income is included in the income statement under the line banking and service fees . the second product is refund transfer . the bank entered into agreements to offer this product in august 2015. the bank is responsible for the primary oversight and control of the refund transfer program of a wholly-owned subsidiary of h & r block . the bank opens a temporary bank account for each h & r block customer who is receiving an income tax refund and elects to defer payment of his or her tax preparation fees . after the internal revenue service and any state income tax authorities transfer the refund into the customer 's account , the net funds are transferred to the customer and the temporary deposit account is closed . story_separator_special_tag our net interest income has increased as a result of the growth in our interest earning assets and is subject to competitive factors in the online banking market . our net interest income is reduced by our estimate of loss provisions for our loan and lease portfolio . we also earn non-interest income primarily from mortgage banking activities , banking products and service activity , prepaid card fee income , prepayment fee income from multifamily borrowers who repay their loans before maturity and from gains on sales of other loans and investment securities . losses on investment securities reduce non-interest income . the largest component of non-interest expense is salary and benefits , which is a function of the number of personnel , which increased from 681 full time employees at june 30 , 2017 to 801 full-time equivalent employees at june 30 , 2018 . we are subject to federal and state income taxes , and our effective tax rates were 36.42 % , 42.10 % and 41.78 % for the fiscal years ended june 30 , 2018 , 2017 , and 2016 , respectively . other factors that affect our results of operations include expenses relating to data processing , advertising , depreciation , occupancy , professional services , and other miscellaneous expenses . comparison of the fiscal year ended june 30 , 20 18 and june 30 , 2017 net interest income . net interest income totaled $ 368.5 million for the fiscal year ended june 30 , 2018 compared to $ 313.2 million for the fiscal year ended june 30 , 2017 . the following table sets forth the effects of changing rates and volumes on our net interest income . information is provided with respect to ( i ) effects on interest income and interest expense attributable to changes in volume ( changes in volume multiplied by prior rate ) ; and ( ii ) effects on interest income and interest expense attributable to changes in rate ( changes in rate multiplied by prior volume ) . the change in interest due to both volume and rate has been allocated proportionally to both , based on their relative absolute values . replace_table_token_18_th the change in interest due to both volume and rate has been allocated proportionally to both , based on their relative absolute values . interest income . interest income for the fiscal year ended june 30 , 2018 totaled $ 475.1 million , an increase of $ 87.8 million , or 22.7 % , compared to $ 387.3 million in interest income for the fiscal year ended june 30 , 2017 primarily due to growth in volume of interest-earning assets from loan originations , primarily from commercial & industrial lending as well as accretion from origination fees from refund advance loans . fundings of refund advance loans increased from $ 0.3 billion to $ 1.1 billion for the fiscal years ended june 30 , 2017 and june 30 , 2018 , respectively . average interest-earning assets for the fiscal year ended june 30 , 2018 increased by $ 1,044.5 million compared to the fiscal year ended june 30 , 2017 primarily due to loan and lease originations for investment which increased $ 1,740.1 million during the year ended june 30 , 2018 . yields on loans and leases increased by 40 basis points to 5.66 % for the fiscal year ended june 30 , 2018 , primarily due to increased yields in the single family , commercial & industrial and h & r block-branded loan products . for the fiscal year ended june 30 , 2018 , the growth in average balances contributed additional interest income of $ 52.2 million , which was supplemented by a $ 35.6 million increase in interest income due to the increase in average rate . the average yield earned on our interest-earning assets increased to 5.30 % for the fiscal year ended june 30 , 2018 , up from 4.89 % for the same period in 2017 primarily due to the increase in rate from loans and leases . as a result of the federal reserve decisions to increase the fed funds rate over the last year we have marked up our 40 adjustable loans and have increased the market rates on new loans . a contributing factor to the increase of loans and leases income is the amortization of origination fees for h & r block-branded products . interest expense . interest expense totaled $ 106.6 million for the fiscal year ended june 30 , 2018 , an increase of $ 32.5 million , or 43.9 % compared to $ 74.1 million in interest expense during the fiscal year ended june 30 , 2017 , due primarily to increased rates on deposits and advances , as a result of the federal reserve decisions to increase the fed funds rate over the last year . the average rate paid on all of our interest-bearing liabilities increased to 1.51 % for the fiscal year ended june 30 , 2018 from 1.15 % for the fiscal year ended june 30 , 2017 , due primarily to increased rates on deposits and advances from fhlb . average interest-bearing liabilities for the fiscal year ended june 30 , 2018 increased $ 603.5 million compared to fiscal 2017 . the average rate on interest-bearing deposits increased to 1.15 % from 0.75 % due to increases in prevailing deposit rates across the industry . the rates on advances from the fhlb also increased to 1.76 % from 1.55 % due primarily to the fed rate increases . the average rate on time deposits increased to 2.61 % for the fiscal year ended june 30 , 2018 from 2.33 % for the fiscal year ended june 30 , 2017 , due to fed rate increases . average fhlb advances for the fiscal year ended june 30 , 2018 increased $ 497.1 million , or 62.2 % compared to fiscal 2017. the average non-interest-bearing demand

see part 1 , item 1 , business , for additional information regarding the description of our business . as we look to 2015 , we are witnessing a correction in customer activity , especially in our upstream oil and gas markets , due to the current macro-economic uncertainty from the decline in oil prices , currency volatility , a weak european economy , and other geopolitical risks . we believe our north american short cycle business will be impacted in the short term due to the reduction of north american upstream activity and destocking of the channel . for our large engineered projects businesses , we are seeing project delays and capital expenditure reductions , which we expect to have an adverse impact on our large project revenue in the longer term . however , we expect to see modest growth in other markets we serve : the asian power generation markets , the global liquefied natural gas market , and certain mid and down-stream energy markets . we believe the aerospace & defense markets will experience modest growth based on increases in oem production rates and volume growth for specific defense related platforms . 15 we are implementing actions to mitigate the impact on our earnings and better align our businesses with potential lower demand . in addition we will continue to focus on both organic and acquisition growth opportunities and we are investing in products and technologies that help solve our customers ' most difficult problems . we expect to further simplify circor by standardizing technology , reducing facilities , and consolidating suppliers among other actions . finally , attracting and retaining talented personnel , including the development of our global sales , operations , and engineering organization , remains an important part of our strategy during 2015. operational excellence will be the foundation of our culture as we continue to transform circor into a world class company . we believe our cash flow from operations and financing capacity is adequate to support these activities . basis of presentation all significant intercompany balances and transactions have been eliminated in consolidation . certain prior period financial statement amounts have been reclassified to conform to currently reported presentations . we monitor our business in two segments : energy and aerospace & defense . we operate and report financial information using a 52-week fiscal year ending december 31. the data periods contained within our quarterly reports on form 10-q reflect the results of operations for the 13-week , 26-week and 39-week periods which generally end on the sunday nearest the calendar quarter-end date . critical accounting policies our critical accounting policies were selected because they are broadly applicable within our operating units . the expenses and accrued liabilities or allowances related to certain of these policies are initially based on our best estimates at the time of original entry in our accounting records . adjustments are recorded when our actual experience , or new information concerning our expected experience , differs from underlying initial estimates . these adjustments could be material if our actual or expected experience were to change significantly in a short period of time . we make frequent comparisons of actual experience and expected experience in order to mitigate the likelihood of material adjustments . there have been no significant changes from the methodology applied by management for critical accounting estimates previously disclosed in our annual report on form 10-k for the fiscal year ended december 31 , 2013 . for information regarding our critical accounting policies refer to note 2 to the consolidated financial statements included in this annual report , which disclosure is incorporated by reference herein . 16 results of operations for the year ended december 31 , 2014 compared to the year ended december 31 , 2013 the following tables set forth the results of operations , percentage of net revenue and the period-to-period percentage change in certain financial data for the years ended december 31 , 2014 and december 31 , 2013 : replace_table_token_3_th net revenues net revenues for the year ended december 31 , 2014 decreased by $ 16.4 million , or 2 % , to $ 841.4 million from $ 857.8 million for the year ended december 31 , 2013 . the change in net revenues for the year ended december 31 , 2014 was attributable to the following : replace_table_token_4_th our energy segment accounted for 78 % of net revenues for the year ended december 31 , 2014 compared to 77 % for the year ended december 31 , 2013 with the aerospace & defense segment accounting for the remainder . energy segment revenues decreased $ 7.7 million , or 1 % , for the year ended december 31 , 2014 compared to the same period in 2013 . the decrease was primarily driven by lower shipment volumes in large international projects ( 4 % ) and our control valves businesses ( 2 % ) and unfavorable foreign currency of $ 5.9 million ( 1 % ) , partially offset by higher shipment volumes in the upstream north american short-cycle ( 3 % ) and downstream instrumentation businesses ( 2 % ) . energy segment orders decreased $ 15.8 million , or 2.3 % , to $ 675.9 million for the twelve months ended december 31 , 2014 compared to $ 691.7 million for the same period in 2013 primarily due to lower bookings in upstream large international projects . orders within our project businesses can be unpredictable or `` lumpy `` given the nature of the procurement process . story_separator_special_tag special charges / ( recoveries ) during the twelve months ended december 31 , 2013 we incurred $ 8.6 million of special charges , net of recoveries . these charges of $ 5.4 million and $ 5.2 million for the energy and aerospace & defense segments , respectively , were associated with restructuring actions that were announced in both 2013 and 2012. in addition we incurred $ 1.1 million of corporate special compensation-related charges associated with the retirement of our former cfo . these special charges were offset by special recoveries associated with an arbitration recovery of $ 3.2 million in the energy segment . during the twelve months ended december 31 , 2012 we incurred $ 5.3 million in special charges ; $ 2.5 million associated with our 2012 announced restructuring and $ 2.7 million associated with the separation of our former ceo . operating income increased 49 % , or $ 22.6 million , to $ 69.2 million for the year ended december 31 , 2013 compared to $ 46.5 million for the same period in 2012. operating income for our energy segment increased $ 23.0 million , or 34 % , to $ 90.8 million for the year ended december 31 , 2013 compared to the same period in 2012. the increase in operating income was primarily driven by higher organic increases of $ 19.3 million , favorable foreign currency impacts of $ 1.1 million and lower inventory restructuring , impairment , and special charges of $ 2.6 million in 2013 compared to 2012. operating margins improved 340 basis points to 13.7 % on essentially flat revenue growth . organic operating margins increased 280 basis points primarily driven by higher shipments and favorable pricing within our large international project business ( approximately 290 basis points ) and power businesses ( approximately 21 90 basis points ) . these organic increases were partially offset by decreased revenue in the north american short cycle market ( approximately 100 basis points ) driven primarily by lower rig counts year over year . operating income for the aerospace & defense segment increased $ 1.4 million , or 29 % , to $ 6.2 million for the year ended december 31 , 2013 compared to the same period in 2012. operating income improved primarily due to $ 2.1 million of operational improvements offset by higher inventory restructuring , impairment , and special charges of $ 0.5 million in 2013 compared to 2012. organically operating income increased $ 1.0 million primarily due to increased shipments in our uk-based defense businesses , productivity from restructuring actions , partially offset by increased new program development and start- up costs and factory reorganization costs associated with landing gear production . corporate operating expenses increased $ 1.8 million , or 7 % , to $ 27.8 million , for the year ended december 31 , 2013 compared to the same period in 2012 , primarily due to higher incentive and share based compensation and professional fees partially offset by lower special charges . interest expense , net interest expense , net , decreased $ 1.1 million to $ 3.2 million for the year ended 2013 compared to $ 4.3 million for the year ended december 31 , 2012 . this decrease in interest expense was primarily due to lower interest charges from lower international borrowings . other expense , net other expense , net , was $ 2.0 million for the year ended december 31 , 2013 compared to $ 0.5 million in the same period of 2012 due largely as a result of unfavorable foreign exchange expenses associated with the remeasurement of foreign currency balances . provision for income taxes the effective tax rate was 26.4 % for the year ended december 31 , 2013 compared to 26.2 % for the same period of 2012 . the primary driver of the lower 2012 tax rate was higher foreign source income which is taxed at a lower rate than u.s. income . story_separator_special_tag at december 31 , 2013 . the decrease in the current ratio was primarily due to a $ 16.5 million increase in accounts payable as of december 31 , 2014 as compared to december 31 , 2013. as of december 31 , 2014 , cash and cash equivalents totaled $ 121.3 million , all held in foreign bank accounts with the exception of $ 5.4 million . this compares to $ 102.2 million of cash and cash equivalents as of december 31 , 2013 substantially all of which was held in foreign bank accounts . the cash and cash equivalents located at our foreign subsidiaries may not be repatriated to the united states or other jurisdictions without significant tax implications . we believe that our u.s. based subsidiaries , in the aggregate , will generate positive operating cash flows and in addition we may utilize our 2014 credit facility for u.s. based subsidiary cash needs . as a result , we believe that we will not need to repatriate cash from our foreign subsidiaries with earnings that are indefinitely reinvested . in 2015 , we expect to generate positive cash flow from operating activities sufficient to support our capital expenditures and pay dividends of approximately $ 2.7 million based on our current dividend practice of paying $ 0.15 per share annually . based on our expected cash flows from operations and contractually available borrowings under our credit facility , we expect to have sufficient liquidity to fund working capital needs and future growth . we continue to search for strategic acquisitions ; a larger acquisition may require additional borrowings and or the issuance of our common stock . 23 the following table summarizes our significant contractual obligations and commercial commitments at december 31 , 2014 that affect our liquidity : replace_table_token_10_th the interest on certain of our other debt balances , with scheduled repayment dates between 2015 and 2018 and interest rates ranging between 1.90 % and 15.92 % , have been included in

liquidity and capital resources our liquidity needs arise primarily from capital investment in machinery , equipment and the improvement of facilities , funding working capital requirements to support business growth initiatives , acquisitions , dividend payments , pension funding obligations and debt service costs . we have historically generated cash from operations and remain in a strong financial position , with resources available for reinvestment in existing businesses , strategic acquisitions and managing our capital structure on a short and long-term basis . the following table summarizes our cash flow activities for the twelve month periods indicated ( in thousands ) : replace_table_token_9_th during the year ended december 31 , 2014 , we generated $ 70.8 million in cash flow from operating activities compared to $ 72.2 million during the twelve months ended december 31 , 2013 . the $ 1.4 million decrease in cash generated from operating activities was primarily due to lower cash inflows from accounts receivables , net of $ 45.4 million partially offset by lower accounts payable outflows of $ 42.0 million as compared to the prior year . during the year ended december 31 , 2014 , we used $ 1.8 million for investing activities as compared to $ 13.3 million during the twelve months ended december 31 , 2013 .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources our liquidity needs arise primarily from capital investment in machinery , equipment and the improvement of facilities , funding working capital requirements to support business growth initiatives , acquisitions , dividend payments , pension funding obligations and debt service costs . we have historically generated cash from operations and remain in a strong financial position , with resources available for reinvestment in existing businesses , strategic acquisitions and managing our capital structure on a short and long-term basis . the following table summarizes our cash flow activities for the twelve month periods indicated ( in thousands ) : replace_table_token_9_th during the year ended december 31 , 2014 , we generated $ 70.8 million in cash flow from operating activities compared to $ 72.2 million during the twelve months ended december 31 , 2013 . the $ 1.4 million decrease in cash generated from operating activities was primarily due to lower cash inflows from accounts receivables , net of $ 45.4 million partially offset by lower accounts payable outflows of $ 42.0 million as compared to the prior year . during the year ended december 31 , 2014 , we used $ 1.8 million for investing activities as compared to $ 13.3 million during the twelve months ended december 31 , 2013 . ``` Suspicious Activity Report : see part 1 , item 1 , business , for additional information regarding the description of our business . as we look to 2015 , we are witnessing a correction in customer activity , especially in our upstream oil and gas markets , due to the current macro-economic uncertainty from the decline in oil prices , currency volatility , a weak european economy , and other geopolitical risks . we believe our north american short cycle business will be impacted in the short term due to the reduction of north american upstream activity and destocking of the channel . for our large engineered projects businesses , we are seeing project delays and capital expenditure reductions , which we expect to have an adverse impact on our large project revenue in the longer term . however , we expect to see modest growth in other markets we serve : the asian power generation markets , the global liquefied natural gas market , and certain mid and down-stream energy markets . we believe the aerospace & defense markets will experience modest growth based on increases in oem production rates and volume growth for specific defense related platforms . 15 we are implementing actions to mitigate the impact on our earnings and better align our businesses with potential lower demand . in addition we will continue to focus on both organic and acquisition growth opportunities and we are investing in products and technologies that help solve our customers ' most difficult problems . we expect to further simplify circor by standardizing technology , reducing facilities , and consolidating suppliers among other actions . finally , attracting and retaining talented personnel , including the development of our global sales , operations , and engineering organization , remains an important part of our strategy during 2015. operational excellence will be the foundation of our culture as we continue to transform circor into a world class company . we believe our cash flow from operations and financing capacity is adequate to support these activities . basis of presentation all significant intercompany balances and transactions have been eliminated in consolidation . certain prior period financial statement amounts have been reclassified to conform to currently reported presentations . we monitor our business in two segments : energy and aerospace & defense . we operate and report financial information using a 52-week fiscal year ending december 31. the data periods contained within our quarterly reports on form 10-q reflect the results of operations for the 13-week , 26-week and 39-week periods which generally end on the sunday nearest the calendar quarter-end date . critical accounting policies our critical accounting policies were selected because they are broadly applicable within our operating units . the expenses and accrued liabilities or allowances related to certain of these policies are initially based on our best estimates at the time of original entry in our accounting records . adjustments are recorded when our actual experience , or new information concerning our expected experience , differs from underlying initial estimates . these adjustments could be material if our actual or expected experience were to change significantly in a short period of time . we make frequent comparisons of actual experience and expected experience in order to mitigate the likelihood of material adjustments . there have been no significant changes from the methodology applied by management for critical accounting estimates previously disclosed in our annual report on form 10-k for the fiscal year ended december 31 , 2013 . for information regarding our critical accounting policies refer to note 2 to the consolidated financial statements included in this annual report , which disclosure is incorporated by reference herein . 16 results of operations for the year ended december 31 , 2014 compared to the year ended december 31 , 2013 the following tables set forth the results of operations , percentage of net revenue and the period-to-period percentage change in certain financial data for the years ended december 31 , 2014 and december 31 , 2013 : replace_table_token_3_th net revenues net revenues for the year ended december 31 , 2014 decreased by $ 16.4 million , or 2 % , to $ 841.4 million from $ 857.8 million for the year ended december 31 , 2013 . the change in net revenues for the year ended december 31 , 2014 was attributable to the following : replace_table_token_4_th our energy segment accounted for 78 % of net revenues for the year ended december 31 , 2014 compared to 77 % for the year ended december 31 , 2013 with the aerospace & defense segment accounting for the remainder . energy segment revenues decreased $ 7.7 million , or 1 % , for the year ended december 31 , 2014 compared to the same period in 2013 . the decrease was primarily driven by lower shipment volumes in large international projects ( 4 % ) and our control valves businesses ( 2 % ) and unfavorable foreign currency of $ 5.9 million ( 1 % ) , partially offset by higher shipment volumes in the upstream north american short-cycle ( 3 % ) and downstream instrumentation businesses ( 2 % ) . energy segment orders decreased $ 15.8 million , or 2.3 % , to $ 675.9 million for the twelve months ended december 31 , 2014 compared to $ 691.7 million for the same period in 2013 primarily due to lower bookings in upstream large international projects . orders within our project businesses can be unpredictable or `` lumpy `` given the nature of the procurement process . story_separator_special_tag special charges / ( recoveries ) during the twelve months ended december 31 , 2013 we incurred $ 8.6 million of special charges , net of recoveries . these charges of $ 5.4 million and $ 5.2 million for the energy and aerospace & defense segments , respectively , were associated with restructuring actions that were announced in both 2013 and 2012. in addition we incurred $ 1.1 million of corporate special compensation-related charges associated with the retirement of our former cfo . these special charges were offset by special recoveries associated with an arbitration recovery of $ 3.2 million in the energy segment . during the twelve months ended december 31 , 2012 we incurred $ 5.3 million in special charges ; $ 2.5 million associated with our 2012 announced restructuring and $ 2.7 million associated with the separation of our former ceo . operating income increased 49 % , or $ 22.6 million , to $ 69.2 million for the year ended december 31 , 2013 compared to $ 46.5 million for the same period in 2012. operating income for our energy segment increased $ 23.0 million , or 34 % , to $ 90.8 million for the year ended december 31 , 2013 compared to the same period in 2012. the increase in operating income was primarily driven by higher organic increases of $ 19.3 million , favorable foreign currency impacts of $ 1.1 million and lower inventory restructuring , impairment , and special charges of $ 2.6 million in 2013 compared to 2012. operating margins improved 340 basis points to 13.7 % on essentially flat revenue growth . organic operating margins increased 280 basis points primarily driven by higher shipments and favorable pricing within our large international project business ( approximately 290 basis points ) and power businesses ( approximately 21 90 basis points ) . these organic increases were partially offset by decreased revenue in the north american short cycle market ( approximately 100 basis points ) driven primarily by lower rig counts year over year . operating income for the aerospace & defense segment increased $ 1.4 million , or 29 % , to $ 6.2 million for the year ended december 31 , 2013 compared to the same period in 2012. operating income improved primarily due to $ 2.1 million of operational improvements offset by higher inventory restructuring , impairment , and special charges of $ 0.5 million in 2013 compared to 2012. organically operating income increased $ 1.0 million primarily due to increased shipments in our uk-based defense businesses , productivity from restructuring actions , partially offset by increased new program development and start- up costs and factory reorganization costs associated with landing gear production . corporate operating expenses increased $ 1.8 million , or 7 % , to $ 27.8 million , for the year ended december 31 , 2013 compared to the same period in 2012 , primarily due to higher incentive and share based compensation and professional fees partially offset by lower special charges . interest expense , net interest expense , net , decreased $ 1.1 million to $ 3.2 million for the year ended 2013 compared to $ 4.3 million for the year ended december 31 , 2012 . this decrease in interest expense was primarily due to lower interest charges from lower international borrowings . other expense , net other expense , net , was $ 2.0 million for the year ended december 31 , 2013 compared to $ 0.5 million in the same period of 2012 due largely as a result of unfavorable foreign exchange expenses associated with the remeasurement of foreign currency balances . provision for income taxes the effective tax rate was 26.4 % for the year ended december 31 , 2013 compared to 26.2 % for the same period of 2012 . the primary driver of the lower 2012 tax rate was higher foreign source income which is taxed at a lower rate than u.s. income . story_separator_special_tag at december 31 , 2013 . the decrease in the current ratio was primarily due to a $ 16.5 million increase in accounts payable as of december 31 , 2014 as compared to december 31 , 2013. as of december 31 , 2014 , cash and cash equivalents totaled $ 121.3 million , all held in foreign bank accounts with the exception of $ 5.4 million . this compares to $ 102.2 million of cash and cash equivalents as of december 31 , 2013 substantially all of which was held in foreign bank accounts . the cash and cash equivalents located at our foreign subsidiaries may not be repatriated to the united states or other jurisdictions without significant tax implications . we believe that our u.s. based subsidiaries , in the aggregate , will generate positive operating cash flows and in addition we may utilize our 2014 credit facility for u.s. based subsidiary cash needs . as a result , we believe that we will not need to repatriate cash from our foreign subsidiaries with earnings that are indefinitely reinvested . in 2015 , we expect to generate positive cash flow from operating activities sufficient to support our capital expenditures and pay dividends of approximately $ 2.7 million based on our current dividend practice of paying $ 0.15 per share annually . based on our expected cash flows from operations and contractually available borrowings under our credit facility , we expect to have sufficient liquidity to fund working capital needs and future growth . we continue to search for strategic acquisitions ; a larger acquisition may require additional borrowings and or the issuance of our common stock . 23 the following table summarizes our significant contractual obligations and commercial commitments at december 31 , 2014 that affect our liquidity : replace_table_token_10_th the interest on certain of our other debt balances , with scheduled repayment dates between 2015 and 2018 and interest rates ranging between 1.90 % and 15.92 % , have been included in

the cost of our feed ingredients , which are commodities , are subject to factors over which we have little or no control such as volatile price changes caused by weather , size of harvest , transportation and storage costs , demand and the agricultural and energy policies of the united states and foreign governments . the corn and soybean crops were large for the 2010 crop year ; however , national inventories of both commodities are expected to be at very low levels as the crop year comes to a close . feed ingredient prices have continued to increase sharply since july 2010. market prices for corn have risen , in part , due to increases in export demand and increases in demand from ethanol producers . market prices for soybean meal remain high because of competition for planted acres for other grain production . the prospective outlook is for feed costs to remain high and increasingly volatile in the year ahead . 19 the purchase of tampa farms , llc described in note 2 in the notes to the consolidated financial statements is referred to below as the “ acquisition . ” to increase comparability in the results of operations comparison between fiscal 2010 and fiscal 2009 , the exclusion of the acquisition refers to the exclusion of the fiscal 2010 first and second quarter results of operations for tampa farms , llc , because tampa farms , llc was not acquired until the third quarter of fiscal 2009. we also acquired zephyr egg , llc during the first quarter of fiscal 2009 , which is described in note 2 in the notes to the consolidated financial statements . however , since zephyr egg , llc 's results of operations are included in all four quarters of fiscal 2009 and fiscal 2010 , there was no adjustment necessary in the results of operations comparisons for these periods for that acquisition . results of operations the following table sets forth , for the years indicated , certain items from our consolidated statements of income expressed as a percentage of net sales . replace_table_token_3_th executive overview of results – may 28 , 2011 , may 29 , 2010 , and may 30 , 2009 our operating results are significantly affected by wholesale shell egg market prices and feed costs , which can fluctuate widely and are outside of our control . primarily , our shell eggs are sold at prices related to the urner barry spot egg market quotations for the southeastern region of the country . the following table shows our net income ( loss ) , net average shell egg selling price , feed cost per dozen produced , and the average urner barry wholesale large shell egg prices in the southeast region , for each of our three most recent fiscal years . replace_table_token_4_th 1- average daily price for the large market ( i.e . generic shell egg ) in the southeastern region the shell egg industry has traditionally been subject to periods of high profitability followed by periods of significant loss . the periods of high profitability reflect increased consumer demand relative to supply while the periods of significant loss reflect excess supply for the then prevailing consumer demand . historically , demand for shell eggs increases in line with overall population growth . as reflected above , our operating results correspond with changes in the spot egg market quote . the net average shell egg selling price is the blended price for all sizes and grades of shell eggs , including non-graded shell egg sales , breaking stock and undergrades . in fiscal 2003 and 2004 , shell egg demand increased at higher than normal trend rates due to the increased popularity of high protein diets . this demand imbalance caused shell egg prices to increase . in late fiscal 2004 , the popularity of these high protein diets began to diminish , but our egg production had been increased to meet the earlier higher demand levels . lower egg prices followed , and we experienced net losses in fiscal 2005 and 2006. beginning in the latter part of fiscal 2006 , egg supplies appeared to become more aligned with demand . since that time , the supply-demand balance has tightened . tighter supplies resulted in increased prices in fiscal 2007 , and prices reached record levels in fiscal 2008. these increased prices resulted in significantly improved profitability . in fiscal 2009 , egg prices declined as compared to fiscal 2008 , due to slight increases in supply . in fiscal 2010 , egg prices continued to decline as compared to fiscal 2009 , due to continued increases in industry supply . egg sales at the retail level were good , and while there was modest improvement in food service and restaurant sales , overall there is continued weakness in food service and restaurant sales . for fiscal 2010 , our feed costs decreased , as compared to feed costs in fiscal 2009. for fiscal 2011 , our net average selling price increased slightly , but due to higher feed costs our net income decreased . 20 fiscal year ended may 28 , 2011 compared to fiscal year ended may 29 , 2010 net sales . in fiscal 2011 , approximately 96 % of our net sales consisted of shell egg sales and approximately 3 % was for sales of egg products , with the 1 % balance consisting of sales of incidental feed and feed ingredients . story_separator_special_tag 25 for the thirteen-week period ended may 29 , 2010 , non-specialty shell eggs represented approximately 77.1 % of our shell egg dollar sales , as compared to 78.5 % for the thirteen-week period ended may 30 , 2009. for the thirteen-week period ended may 29 , 2010 , non-specialty shell eggs accounted for approximately 84.6 % of the total shell egg dozen volume , as compared to 86.8 % for the thirteen-week period ended may 30 , 2009. we continue to increase our sales volume of specialty eggs , which include nutritionally enhanced , cage free and organic eggs . specialty egg retail prices are less cyclical than non-specialty shell egg prices and are generally higher due to consumer willingness to pay for the increased benefits from these products . for fiscal 2010 , specialty eggs accounted for 21.4 % of shell egg dollar sales , as compared to 19.0 % in fiscal 2009 , and 14.4 % of shell egg dozens sold in fiscal 2010 , as compared to 13.8 % in fiscal 2009. they are a rapidly growing part of the shell egg market . due to healthier eating trends , the volume of specialty eggs continues to increase . from fiscal 2009 to fiscal 2010 , the volume of specialty eggs sold increased by 8.5 % . for the thirteen-week period ended may 29 , 2010 , specialty shell eggs represented approximately 22.6 % of our shell egg dollar sales , as compared to 21.0 % for the thirteen-week period ended may 30 , 2009. for the thirteen-week period ended may 29 , 2010 , specialty shell eggs accounted for approximately 15.4 % of the total shell egg dozen volume , as compared to 13.2 % for the thirteen-week period ended may 30 , 2009. the shell egg sales classified as “ other ” represent sales of hard cooked eggs , hatching eggs , and baby chicks , which are included with our shell egg operations . egg products are shell eggs that are broken and sold in liquid , frozen , or dried form . for fiscal 2010 our egg product sales were $ 27.4 million , a decrease of $ 6.5 million or 19.2 % , as compared to $ 33.9 million for fiscal 2009. our volume of egg products sold for fiscal 2010 was 59.5 million pounds , an increase of 2.1 million pounds or 3.7 % , as compared to 57.4 million pounds for fiscal 2009. in fiscal 2010 , the price per pound of egg products sold was $ 0.461 as compared to $ 0.591 for fiscal 2009 , which is a decrease of 22.0 % . egg products are primarily sold into the institutional and food service sectors , which continue to have weak demand . this led to significant declines in the wholesale price of the three primary forms of egg products that we sell . our egg products are sold through aep and tep . for fiscal 2010 , egg product sales for aep were $ 15.5 million , as compared to $ 19.6 million for fiscal 2009 , a decrease of $ 4.1 million , or 20.9 % . for aep the volume of egg products sold for fiscal 2010 was 35.2 million pounds , an increase of 1.2 million pounds , or 3.5 % , as compared to 34.0 million pounds for fiscal 2009. the egg product sales for tep in fiscal 2010 were $ 11.9 million , as compared to $ 14.3 million for fiscal 2009 , a decrease of $ 2.4 million or 16.8 % . for tep the volume of egg products sold for fiscal 2010 was 24.3 million pounds , an increase of 900,000 pounds , or 3.8 % , as compared to 23.4 million pounds for fiscal 2009. as described in note 1 to the consolidated financial statements , tep is a variable interest entity of which the company is the primary beneficiary . 26 cost of sales cost of sales consists of costs directly related to production , processing and packing shell eggs , purchases of shell eggs from outside producers , processing and packing of liquid and frozen egg products and other non-egg costs . farm production costs are those costs incurred at the egg production facility , including feed , facility , hen amortization , and other related farm production costs . the following table presents the key variables affecting our cost of sales . fiscal years ended ( 52 weeks ) quarter ended ( 13 weeks ) ( amounts in thousands ) may 29 , 2010 may 30 , 2009 may 29 , 2010 may 30 , 2009 cost of sales : farm production $ 362,338 $ 364,208 $ 86,464 $ 95,522 processing and packaging 110,885 103,151 27,004 27,566 outside egg purchases 192,818 200,345 44,923 43,733 other costs 23,424 24,579 2,838 3,112 total shell eggs $ 689,465 $ 692,283 $ 161,229 $ 169,933 egg products 24,177 29,689 5,880 5,353 other 1,857 2,113 303 408 total $ 715,499 $ 724,085 $ 167,412 $ 175,694 farm production cost ( cost per dozen produced ) feed $ 0.349 $ 0.391 $ 0.327 $ 0.376 other 0.217 0.218 0.223 0.217 total $ 0.566 $ 0.609 $ 0.550 $ 0.593 outside egg purchases ( average cost per dozen ) $ 1.167 $ 1.114 $ 1.183 $ 1.162 dozen produced 640,174 598,042 157,207 161,082 dozen purchased * 165,225 179,843 37,973 44,175 dozen sold 805,399 777,885 195,180 205,257 * net of processing loss and inventory adjustments cost of sales for the fiscal year ended may 29 , 2010 was $ 715.5 million , a decrease of $ 8.6 million , or 1.2 % , as compared to cost of sales of $ 724.1 million for fiscal 2009. on a comparable basis , dozens produced increased , dozens purchased from outside shell egg producers decreased and cost of feed ingredients decreased in fiscal 2010. the cost per dozen of shell eggs purchased from outside producers

capital resources and liquidity . our working capital at may 28 , 2011was $ 247.6 million compared to $ 220.2 million at may 29 , 2010. the calculation of working capital is defined as current assets less current liabilities . our current ratio was 3.30 at may 28 , 2011 as compared with 2.87 at may 29 , 2010. the current ratio is calculated by dividing current assets by current liabilities . our need for working capital generally is highest in the last and first fiscal quarters ending in may and august , respectively , when egg prices are normally at seasonal lows . we have $ 5.1 million in outstanding standby letters of credit , which are collateralized with cash . our long-term debt at may 28 , 2011 , including current maturities , amounted to $ 88.2 million , as compared to $ 134.7 million at may 29 , 2010. for the fiscal year ended may 28 , 2011 , $ 62.3 million in net cash was provided by operating activities . this compares to $ 116.7 million of net cash provided by operating activities for the fiscal year ended may 29 , 2010. for fiscal 2011 , approximately $ 137.2 million was provided from the sale of short-term investments , $ 156.9 million was used for the purchase of short-term investments and net $ 3.1 million was provided by notes receivable and investments in nonconsolidated subsidiaries . we received $ 4.8 million from the sale of non-voting stock in eb . approximately $ 1.9 million was provided from disposal of property , plant and equipment and $ 20.7 million was used for purchases of property , plant and equipment . approximately $ 24.9 million was used for payment of dividends on common stock , $ 46.5 million was used for principal payments on long-term debt , and $ 2.6 million was used for payment of a fee connected with the early extinguishment of debt . approximately $ 143,000 was received from the issuance of common stock from treasury after the exercise of 24,000 stock options having a strike price of $ 5.93 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. ```capital resources and liquidity . our working capital at may 28 , 2011was $ 247.6 million compared to $ 220.2 million at may 29 , 2010. the calculation of working capital is defined as current assets less current liabilities . our current ratio was 3.30 at may 28 , 2011 as compared with 2.87 at may 29 , 2010. the current ratio is calculated by dividing current assets by current liabilities . our need for working capital generally is highest in the last and first fiscal quarters ending in may and august , respectively , when egg prices are normally at seasonal lows . we have $ 5.1 million in outstanding standby letters of credit , which are collateralized with cash . our long-term debt at may 28 , 2011 , including current maturities , amounted to $ 88.2 million , as compared to $ 134.7 million at may 29 , 2010. for the fiscal year ended may 28 , 2011 , $ 62.3 million in net cash was provided by operating activities . this compares to $ 116.7 million of net cash provided by operating activities for the fiscal year ended may 29 , 2010. for fiscal 2011 , approximately $ 137.2 million was provided from the sale of short-term investments , $ 156.9 million was used for the purchase of short-term investments and net $ 3.1 million was provided by notes receivable and investments in nonconsolidated subsidiaries . we received $ 4.8 million from the sale of non-voting stock in eb . approximately $ 1.9 million was provided from disposal of property , plant and equipment and $ 20.7 million was used for purchases of property , plant and equipment . approximately $ 24.9 million was used for payment of dividends on common stock , $ 46.5 million was used for principal payments on long-term debt , and $ 2.6 million was used for payment of a fee connected with the early extinguishment of debt . approximately $ 143,000 was received from the issuance of common stock from treasury after the exercise of 24,000 stock options having a strike price of $ 5.93 per share . ``` Suspicious Activity Report : the cost of our feed ingredients , which are commodities , are subject to factors over which we have little or no control such as volatile price changes caused by weather , size of harvest , transportation and storage costs , demand and the agricultural and energy policies of the united states and foreign governments . the corn and soybean crops were large for the 2010 crop year ; however , national inventories of both commodities are expected to be at very low levels as the crop year comes to a close . feed ingredient prices have continued to increase sharply since july 2010. market prices for corn have risen , in part , due to increases in export demand and increases in demand from ethanol producers . market prices for soybean meal remain high because of competition for planted acres for other grain production . the prospective outlook is for feed costs to remain high and increasingly volatile in the year ahead . 19 the purchase of tampa farms , llc described in note 2 in the notes to the consolidated financial statements is referred to below as the “ acquisition . ” to increase comparability in the results of operations comparison between fiscal 2010 and fiscal 2009 , the exclusion of the acquisition refers to the exclusion of the fiscal 2010 first and second quarter results of operations for tampa farms , llc , because tampa farms , llc was not acquired until the third quarter of fiscal 2009. we also acquired zephyr egg , llc during the first quarter of fiscal 2009 , which is described in note 2 in the notes to the consolidated financial statements . however , since zephyr egg , llc 's results of operations are included in all four quarters of fiscal 2009 and fiscal 2010 , there was no adjustment necessary in the results of operations comparisons for these periods for that acquisition . results of operations the following table sets forth , for the years indicated , certain items from our consolidated statements of income expressed as a percentage of net sales . replace_table_token_3_th executive overview of results – may 28 , 2011 , may 29 , 2010 , and may 30 , 2009 our operating results are significantly affected by wholesale shell egg market prices and feed costs , which can fluctuate widely and are outside of our control . primarily , our shell eggs are sold at prices related to the urner barry spot egg market quotations for the southeastern region of the country . the following table shows our net income ( loss ) , net average shell egg selling price , feed cost per dozen produced , and the average urner barry wholesale large shell egg prices in the southeast region , for each of our three most recent fiscal years . replace_table_token_4_th 1- average daily price for the large market ( i.e . generic shell egg ) in the southeastern region the shell egg industry has traditionally been subject to periods of high profitability followed by periods of significant loss . the periods of high profitability reflect increased consumer demand relative to supply while the periods of significant loss reflect excess supply for the then prevailing consumer demand . historically , demand for shell eggs increases in line with overall population growth . as reflected above , our operating results correspond with changes in the spot egg market quote . the net average shell egg selling price is the blended price for all sizes and grades of shell eggs , including non-graded shell egg sales , breaking stock and undergrades . in fiscal 2003 and 2004 , shell egg demand increased at higher than normal trend rates due to the increased popularity of high protein diets . this demand imbalance caused shell egg prices to increase . in late fiscal 2004 , the popularity of these high protein diets began to diminish , but our egg production had been increased to meet the earlier higher demand levels . lower egg prices followed , and we experienced net losses in fiscal 2005 and 2006. beginning in the latter part of fiscal 2006 , egg supplies appeared to become more aligned with demand . since that time , the supply-demand balance has tightened . tighter supplies resulted in increased prices in fiscal 2007 , and prices reached record levels in fiscal 2008. these increased prices resulted in significantly improved profitability . in fiscal 2009 , egg prices declined as compared to fiscal 2008 , due to slight increases in supply . in fiscal 2010 , egg prices continued to decline as compared to fiscal 2009 , due to continued increases in industry supply . egg sales at the retail level were good , and while there was modest improvement in food service and restaurant sales , overall there is continued weakness in food service and restaurant sales . for fiscal 2010 , our feed costs decreased , as compared to feed costs in fiscal 2009. for fiscal 2011 , our net average selling price increased slightly , but due to higher feed costs our net income decreased . 20 fiscal year ended may 28 , 2011 compared to fiscal year ended may 29 , 2010 net sales . in fiscal 2011 , approximately 96 % of our net sales consisted of shell egg sales and approximately 3 % was for sales of egg products , with the 1 % balance consisting of sales of incidental feed and feed ingredients . story_separator_special_tag 25 for the thirteen-week period ended may 29 , 2010 , non-specialty shell eggs represented approximately 77.1 % of our shell egg dollar sales , as compared to 78.5 % for the thirteen-week period ended may 30 , 2009. for the thirteen-week period ended may 29 , 2010 , non-specialty shell eggs accounted for approximately 84.6 % of the total shell egg dozen volume , as compared to 86.8 % for the thirteen-week period ended may 30 , 2009. we continue to increase our sales volume of specialty eggs , which include nutritionally enhanced , cage free and organic eggs . specialty egg retail prices are less cyclical than non-specialty shell egg prices and are generally higher due to consumer willingness to pay for the increased benefits from these products . for fiscal 2010 , specialty eggs accounted for 21.4 % of shell egg dollar sales , as compared to 19.0 % in fiscal 2009 , and 14.4 % of shell egg dozens sold in fiscal 2010 , as compared to 13.8 % in fiscal 2009. they are a rapidly growing part of the shell egg market . due to healthier eating trends , the volume of specialty eggs continues to increase . from fiscal 2009 to fiscal 2010 , the volume of specialty eggs sold increased by 8.5 % . for the thirteen-week period ended may 29 , 2010 , specialty shell eggs represented approximately 22.6 % of our shell egg dollar sales , as compared to 21.0 % for the thirteen-week period ended may 30 , 2009. for the thirteen-week period ended may 29 , 2010 , specialty shell eggs accounted for approximately 15.4 % of the total shell egg dozen volume , as compared to 13.2 % for the thirteen-week period ended may 30 , 2009. the shell egg sales classified as “ other ” represent sales of hard cooked eggs , hatching eggs , and baby chicks , which are included with our shell egg operations . egg products are shell eggs that are broken and sold in liquid , frozen , or dried form . for fiscal 2010 our egg product sales were $ 27.4 million , a decrease of $ 6.5 million or 19.2 % , as compared to $ 33.9 million for fiscal 2009. our volume of egg products sold for fiscal 2010 was 59.5 million pounds , an increase of 2.1 million pounds or 3.7 % , as compared to 57.4 million pounds for fiscal 2009. in fiscal 2010 , the price per pound of egg products sold was $ 0.461 as compared to $ 0.591 for fiscal 2009 , which is a decrease of 22.0 % . egg products are primarily sold into the institutional and food service sectors , which continue to have weak demand . this led to significant declines in the wholesale price of the three primary forms of egg products that we sell . our egg products are sold through aep and tep . for fiscal 2010 , egg product sales for aep were $ 15.5 million , as compared to $ 19.6 million for fiscal 2009 , a decrease of $ 4.1 million , or 20.9 % . for aep the volume of egg products sold for fiscal 2010 was 35.2 million pounds , an increase of 1.2 million pounds , or 3.5 % , as compared to 34.0 million pounds for fiscal 2009. the egg product sales for tep in fiscal 2010 were $ 11.9 million , as compared to $ 14.3 million for fiscal 2009 , a decrease of $ 2.4 million or 16.8 % . for tep the volume of egg products sold for fiscal 2010 was 24.3 million pounds , an increase of 900,000 pounds , or 3.8 % , as compared to 23.4 million pounds for fiscal 2009. as described in note 1 to the consolidated financial statements , tep is a variable interest entity of which the company is the primary beneficiary . 26 cost of sales cost of sales consists of costs directly related to production , processing and packing shell eggs , purchases of shell eggs from outside producers , processing and packing of liquid and frozen egg products and other non-egg costs . farm production costs are those costs incurred at the egg production facility , including feed , facility , hen amortization , and other related farm production costs . the following table presents the key variables affecting our cost of sales . fiscal years ended ( 52 weeks ) quarter ended ( 13 weeks ) ( amounts in thousands ) may 29 , 2010 may 30 , 2009 may 29 , 2010 may 30 , 2009 cost of sales : farm production $ 362,338 $ 364,208 $ 86,464 $ 95,522 processing and packaging 110,885 103,151 27,004 27,566 outside egg purchases 192,818 200,345 44,923 43,733 other costs 23,424 24,579 2,838 3,112 total shell eggs $ 689,465 $ 692,283 $ 161,229 $ 169,933 egg products 24,177 29,689 5,880 5,353 other 1,857 2,113 303 408 total $ 715,499 $ 724,085 $ 167,412 $ 175,694 farm production cost ( cost per dozen produced ) feed $ 0.349 $ 0.391 $ 0.327 $ 0.376 other 0.217 0.218 0.223 0.217 total $ 0.566 $ 0.609 $ 0.550 $ 0.593 outside egg purchases ( average cost per dozen ) $ 1.167 $ 1.114 $ 1.183 $ 1.162 dozen produced 640,174 598,042 157,207 161,082 dozen purchased * 165,225 179,843 37,973 44,175 dozen sold 805,399 777,885 195,180 205,257 * net of processing loss and inventory adjustments cost of sales for the fiscal year ended may 29 , 2010 was $ 715.5 million , a decrease of $ 8.6 million , or 1.2 % , as compared to cost of sales of $ 724.1 million for fiscal 2009. on a comparable basis , dozens produced increased , dozens purchased from outside shell egg producers decreased and cost of feed ingredients decreased in fiscal 2010. the cost per dozen of shell eggs purchased from outside producers

the agatha christie 26 library includes a variety of short story collections , more than 80 novels , 19 plays and a film library of over 100 made-for-television films . in the third quarter of 20 14 , acl published its first book , the monogram murders , since the death of agatha christie . our wholesale partners are broadcasters , digital outlets and major retailers in the u.s. , canada , united kingdom and australia , including , among others : amazon , barnes & noble , bet , costco , directv , hulu , itunes , netflix , pbs , showtime , target and walmart . we work closely with our wholesale partners to outline and implement release and promotional campaigns customized to the different audiences we serve and the program genres we exploit . we have a catalog of owned and long-term licensed content that is segmented into brands such as acorn ( british drama/mystery , including content produced by acl ) , rlje films ( independent feature films , action/thriller horror ) , urban movie channel ( or umc ) ( urban ) , acacia ( fitness ) , and athena ( documentaries ) . our direct-to-consumer segment includes our proprietary svod channels , such as acorn tv and umc , and the sale of video content and complementary merchandise directly to consumers through proprietary e-commerce websites and mail-order catalogs . as of december 31 , 2015 , acorn tv had over 195,000 paying subscribers . as of february 29 , 2016 , acorn tv had approximately 235,000 paying subscribers . umc , which launched in late-2014 , has been adding over 2,000 subscribers per month since december 2015 and has close to 10,000 subscribers as of february 29 , 2016. we expect the subscriber base to continue to grow in 2016 for all of our subscription-based digital channels as we add more exclusive content to the channels . rlje 's management views our operations based on these three distinctive reporting segments : ( 1 ) ip licensing ; ( 2 ) wholesale ; and ( 3 ) direct-to-consumer . operations and net assets that are not associated with any of these stated segments are reported as “ corporate ” when disclosing and discussing segment information . the ip licensing segment includes intellectual property rights that we own or create and then sublicense for exploitation worldwide . our wholesale and direct-to-consumer segments consist of the acquisition , content enhancement and worldwide exploitation of exclusive content in various formats , including broadcast , dvd and blu-ray , and digital ( which include vod , svod , streaming and downloading ) . we also sublicense certain distribution rights to others to cover territories outside the u.s. , the u.k. and australia . the wholesale segment exploits content through third-party vendors such as amazon , best buy , bet , costco , directv , netflix , showtime , target and walmart , while the direct-to-consumer segment exploits the same content and complementary merchandise directly to consumers through our proprietary svod channels , e‑commerce websites and mail-order catalogs . revenue sources net revenues by reporting segment as a percentage of total net revenues for the periods presented are as follows : replace_table_token_7_th ( 1 ) reported net revenues exclude revenues generated by our 64 % owned subsidiary , acl , which is accounted for under the equity method of accounting . revenues by geographical area as a percent of the total revenues are as follows : replace_table_token_8_th wholesale segment dvd and blu-ray our primary source of revenues within the wholesale segment continues to be from the exploitation of exclusive content on dvd and blu-ray through third-party vendors such as amazon , best buy , costco , target and walmart . 27 digital , vod and broadcast revenues derived from digital and broadcast exploitation of our content continue to grow as a percentage of revenues . net revenues derived from digital , vod , third-party svod and broadcast exploitation account for approximately 37.7 % of the segment 's revenues in 2015 versus 30.3 % in 2014. this is consistent with consumer adoption trends . as retailers continue to offer consumer-friendly devices that make access to these on-demand services easier , including allowing consumption on portable devices such as smartphones and tablets , we believe we are well-positioned to capture business in this growing distribution channel . some of our digital retailers include amazon , cinedigm , google play , hoopla , hulu , itunes , microsoft xbox , netflix , overdrive , shudder ( amc ) sony playstation , vimeo , vudu and youtube . our partners in the vod space include at & t , cablevision , comcast , directv , dish , indemand , verizon and vubiquity . other licensing we continue our efforts to acquire more programming with international rights . our key sublicensing partners , that cover territories outside the u.s. , the u.k. and australia , are with bet international , universal music group international , universal pictures australia and warner music australia . to date , most of the feature films we have acquired do not include rights outside of north america . however , given our presence in the united kingdom and australia , we are focusing our efforts to acquire more programming in all english-language markets . when appropriate , we now seek the greatest variety of distribution rights regarding acquired content in the greatest variety of formats . we believe that this will allow us to further diversify revenue streams . direct-to-consumer segment our direct-to-consumer businesses are primarily in the u.s. and u.k. and comprise approximately one-fourth of our overall revenue base . non-video revenues include the sale of retail merchandise such as attire for women and men , home furnishings and decorator items and collectables . story_separator_special_tag for comparability purposes , we made this adjustment retroactively for 2014. adjusted ebitda decreased by $ 2.0 million for the year ended december 31 , 2015 compared to the same period in 2014. the decrease is primarily driven by lower revenues from our ip licensing segment and lower equity earnings of affiliate . a reconciliation of adjusted ebitda to our net cash ( used in ) provided by operating activities as reported in our consolidated statements of cash flows is as follows : replace_table_token_14_th balance sheet analysis assets total assets at december 31 , 2015 and 2014 , were $ 151.5 million and $ 192.1 million , respectively . the decline of $ 40.6 million in assets is mostly attributed to ( i ) the goodwill impairment of $ 30.3 million , ( ii ) amortization of other intangible assets of $ 5.0 million , ( iii ) a decline in investments in content of $ 7.1 million , which is due to the amortization from the business combination 's fair value adjustments of $ 5.0 million and impairments of $ 3.2 million , ( iv ) a decline in inventories of $ 2.3 million as customers continue to shift from physical consumption ( dvd and blue-ray ) to digital ( vod and streaming ) , and ( v ) a decline in our equity investment in acl of $ 2.2 million . the decline in our equity investment is due to a combination of dividends paid of $ 3.3 million being greater than our share of net income from acl of $ 2.2 million and a weakening pound compared to the dollar . 33 offsetting these declines is an increase in accounts receivable of $ 7.6 million , which is due to a shift in our title releases for 2015 whereby more content was released in the fourth quarter this yea r compared to the same period last year . a summary of assets by segment is as follows : replace_table_token_15_th liabilities and equity the decline of liabilities and equity of $ 40.6 million is mostly attributed to the net loss of $ 55.0 million for the year ended december 31 , 2015 that is included in accumulated deficit , offset by $ 12.5 million that is related to the issuance of preferred stock and warrants . on may 20 , 2015 , we issued preferred stock and warrants for $ 31.0 million and concurrently reduced our debt obligations by $ 18.5 million , which consists of an accelerated principal payment of $ 10.0 million and $ 8.5 million of converted subordinated debt . liquidity and capital resources story_separator_special_tag become more restrictive over time . financial covenants include the following : replace_table_token_17_th we are also obligated to maintain a minimum valuation ratio computed on the outstanding principal balance of our senior debt compared to the sum of our valuations of our content library and our investment in acl . to the extent the valuation ratio exceeds the allowed threshold ; we are obligated to make an additional principal payment such that the threshold would not be exceeded after giving effect to this payment . the valuation threshold is 83 % as long as the unpaid principal balance exceeds $ 65.0 million and 75 % thereafter . the credit agreement contains events of default that include , among others , non-payment of principal , interest or fees , violation of covenants , inaccuracy of representations and warranties , bankruptcy and insolvency events , material judgments , cross defaults to certain other contracts ( including , for example , business arrangements with our u.s. distribution facilitation partner and other material contracts ) and indebtedness and events constituting a change of control or a material adverse effect in any of our results of operations or conditions ( financial or otherwise ) . the occurrence of an event of default would increase the applicable rate of interest and could result in the acceleration of our obligations under the credit agreement . the credit agreement imposes restrictions on such items as encumbrances and liens , payments of dividends , other indebtedness , stock repurchases , capital expenditures and entering into new lease obligations . additional covenants restrict our ability to make certain investments , such as loans and equity investments , or investments in content that are not in the ordinary course of business . pursuant to the amended credit agreement , we must maintain at all times a cash balance of $ 1.0 million . as of december 31 , 2015 , we were in compliance with all covenants as stipulated in the amended credit agreement . in connection with the sale of preferred stock and warrants , we used $ 10.0 million of the cash proceeds to make partial payment on the credit agreement and approximately $ 1.9 million for prepayment penalties , legal and accounting fees and other expenses associated with the transaction . 36 subordinated notes payable upon consummation of the business combination , we issued unsecured subordinated promissory notes in the aggregate principal amount of $ 14.8 million to the selling preferred stockholders of image ( or subordinated note holders ) . the subordinated promissory notes mature on the earlier of october 3 , 2018 or six months after the latest stated maturity of the senior debt issued pursuant to the credit agreement . the unsecured subordinated promissory notes currently bear an interest rate of 1.5 % per annum , of which 45 % is payable in cash annually and the balance is accrued and added to the principal , which is payable upon maturity . during the second quarter of 2014 , interest was due of $ 992,000 and added to the principal balance of these notes and the remainder was paid to the debt holders . at december 31 , 2014 , our principal balance due pursuant to these notes was $ 16.0 million . on april 15 , 2015 , we entered into an agreement to

liquidity a summary of our cash flow activities is as follows : replace_table_token_16_th at december 31 , 2015 and 2014 , our cash and cash equivalents were approximately $ 4.5 million and $ 6.7 million , respectively . during the year ended december 31 , 2015 , our cash position was impacted by the following : · we incurred a net use of cash of $ 9.2 million resulting from our operating activities . the net use of cash was largely attributable to a net increase ( or investment ) in working capital of $ 10.2 million . during 2015 , our accounts receivables increased by $ 7.9 million due to a shift in our title releases for 2015 whereby more content was released in the fourth quarter this year compared to the same period last year . we continue to have significant short-term vendor debts , which are past due and which we are in the process of paying off by making increased cash payments or modifying payment terms in the short term . bringing our vendor trade payables current continues to constrain our liquidity . during 2015 , our accounts payable and accrued liabilities decreased by $ 921,000. in 2014 , we were able to reduce accounts payable and accrued liabilities by $ 7.8 million . · our quarterly results are typically affected by : ( a ) the timing and release dates of key productions , ( b ) the seasonality of our wholesale and direct-to-consumer business which are 32 % to 35 % weighted to the fourth quarter and ( c ) we generally invest more cash on content during the first half of the year . the aggregate cash used in operating activities during the year ended december 31 , 2015 was provided by our financing activities and our cash reserves as of december 31 , 2014 , offset by cash used in investing activities .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity a summary of our cash flow activities is as follows : replace_table_token_16_th at december 31 , 2015 and 2014 , our cash and cash equivalents were approximately $ 4.5 million and $ 6.7 million , respectively . during the year ended december 31 , 2015 , our cash position was impacted by the following : · we incurred a net use of cash of $ 9.2 million resulting from our operating activities . the net use of cash was largely attributable to a net increase ( or investment ) in working capital of $ 10.2 million . during 2015 , our accounts receivables increased by $ 7.9 million due to a shift in our title releases for 2015 whereby more content was released in the fourth quarter this year compared to the same period last year . we continue to have significant short-term vendor debts , which are past due and which we are in the process of paying off by making increased cash payments or modifying payment terms in the short term . bringing our vendor trade payables current continues to constrain our liquidity . during 2015 , our accounts payable and accrued liabilities decreased by $ 921,000. in 2014 , we were able to reduce accounts payable and accrued liabilities by $ 7.8 million . · our quarterly results are typically affected by : ( a ) the timing and release dates of key productions , ( b ) the seasonality of our wholesale and direct-to-consumer business which are 32 % to 35 % weighted to the fourth quarter and ( c ) we generally invest more cash on content during the first half of the year . the aggregate cash used in operating activities during the year ended december 31 , 2015 was provided by our financing activities and our cash reserves as of december 31 , 2014 , offset by cash used in investing activities . ``` Suspicious Activity Report : the agatha christie 26 library includes a variety of short story collections , more than 80 novels , 19 plays and a film library of over 100 made-for-television films . in the third quarter of 20 14 , acl published its first book , the monogram murders , since the death of agatha christie . our wholesale partners are broadcasters , digital outlets and major retailers in the u.s. , canada , united kingdom and australia , including , among others : amazon , barnes & noble , bet , costco , directv , hulu , itunes , netflix , pbs , showtime , target and walmart . we work closely with our wholesale partners to outline and implement release and promotional campaigns customized to the different audiences we serve and the program genres we exploit . we have a catalog of owned and long-term licensed content that is segmented into brands such as acorn ( british drama/mystery , including content produced by acl ) , rlje films ( independent feature films , action/thriller horror ) , urban movie channel ( or umc ) ( urban ) , acacia ( fitness ) , and athena ( documentaries ) . our direct-to-consumer segment includes our proprietary svod channels , such as acorn tv and umc , and the sale of video content and complementary merchandise directly to consumers through proprietary e-commerce websites and mail-order catalogs . as of december 31 , 2015 , acorn tv had over 195,000 paying subscribers . as of february 29 , 2016 , acorn tv had approximately 235,000 paying subscribers . umc , which launched in late-2014 , has been adding over 2,000 subscribers per month since december 2015 and has close to 10,000 subscribers as of february 29 , 2016. we expect the subscriber base to continue to grow in 2016 for all of our subscription-based digital channels as we add more exclusive content to the channels . rlje 's management views our operations based on these three distinctive reporting segments : ( 1 ) ip licensing ; ( 2 ) wholesale ; and ( 3 ) direct-to-consumer . operations and net assets that are not associated with any of these stated segments are reported as “ corporate ” when disclosing and discussing segment information . the ip licensing segment includes intellectual property rights that we own or create and then sublicense for exploitation worldwide . our wholesale and direct-to-consumer segments consist of the acquisition , content enhancement and worldwide exploitation of exclusive content in various formats , including broadcast , dvd and blu-ray , and digital ( which include vod , svod , streaming and downloading ) . we also sublicense certain distribution rights to others to cover territories outside the u.s. , the u.k. and australia . the wholesale segment exploits content through third-party vendors such as amazon , best buy , bet , costco , directv , netflix , showtime , target and walmart , while the direct-to-consumer segment exploits the same content and complementary merchandise directly to consumers through our proprietary svod channels , e‑commerce websites and mail-order catalogs . revenue sources net revenues by reporting segment as a percentage of total net revenues for the periods presented are as follows : replace_table_token_7_th ( 1 ) reported net revenues exclude revenues generated by our 64 % owned subsidiary , acl , which is accounted for under the equity method of accounting . revenues by geographical area as a percent of the total revenues are as follows : replace_table_token_8_th wholesale segment dvd and blu-ray our primary source of revenues within the wholesale segment continues to be from the exploitation of exclusive content on dvd and blu-ray through third-party vendors such as amazon , best buy , costco , target and walmart . 27 digital , vod and broadcast revenues derived from digital and broadcast exploitation of our content continue to grow as a percentage of revenues . net revenues derived from digital , vod , third-party svod and broadcast exploitation account for approximately 37.7 % of the segment 's revenues in 2015 versus 30.3 % in 2014. this is consistent with consumer adoption trends . as retailers continue to offer consumer-friendly devices that make access to these on-demand services easier , including allowing consumption on portable devices such as smartphones and tablets , we believe we are well-positioned to capture business in this growing distribution channel . some of our digital retailers include amazon , cinedigm , google play , hoopla , hulu , itunes , microsoft xbox , netflix , overdrive , shudder ( amc ) sony playstation , vimeo , vudu and youtube . our partners in the vod space include at & t , cablevision , comcast , directv , dish , indemand , verizon and vubiquity . other licensing we continue our efforts to acquire more programming with international rights . our key sublicensing partners , that cover territories outside the u.s. , the u.k. and australia , are with bet international , universal music group international , universal pictures australia and warner music australia . to date , most of the feature films we have acquired do not include rights outside of north america . however , given our presence in the united kingdom and australia , we are focusing our efforts to acquire more programming in all english-language markets . when appropriate , we now seek the greatest variety of distribution rights regarding acquired content in the greatest variety of formats . we believe that this will allow us to further diversify revenue streams . direct-to-consumer segment our direct-to-consumer businesses are primarily in the u.s. and u.k. and comprise approximately one-fourth of our overall revenue base . non-video revenues include the sale of retail merchandise such as attire for women and men , home furnishings and decorator items and collectables . story_separator_special_tag for comparability purposes , we made this adjustment retroactively for 2014. adjusted ebitda decreased by $ 2.0 million for the year ended december 31 , 2015 compared to the same period in 2014. the decrease is primarily driven by lower revenues from our ip licensing segment and lower equity earnings of affiliate . a reconciliation of adjusted ebitda to our net cash ( used in ) provided by operating activities as reported in our consolidated statements of cash flows is as follows : replace_table_token_14_th balance sheet analysis assets total assets at december 31 , 2015 and 2014 , were $ 151.5 million and $ 192.1 million , respectively . the decline of $ 40.6 million in assets is mostly attributed to ( i ) the goodwill impairment of $ 30.3 million , ( ii ) amortization of other intangible assets of $ 5.0 million , ( iii ) a decline in investments in content of $ 7.1 million , which is due to the amortization from the business combination 's fair value adjustments of $ 5.0 million and impairments of $ 3.2 million , ( iv ) a decline in inventories of $ 2.3 million as customers continue to shift from physical consumption ( dvd and blue-ray ) to digital ( vod and streaming ) , and ( v ) a decline in our equity investment in acl of $ 2.2 million . the decline in our equity investment is due to a combination of dividends paid of $ 3.3 million being greater than our share of net income from acl of $ 2.2 million and a weakening pound compared to the dollar . 33 offsetting these declines is an increase in accounts receivable of $ 7.6 million , which is due to a shift in our title releases for 2015 whereby more content was released in the fourth quarter this yea r compared to the same period last year . a summary of assets by segment is as follows : replace_table_token_15_th liabilities and equity the decline of liabilities and equity of $ 40.6 million is mostly attributed to the net loss of $ 55.0 million for the year ended december 31 , 2015 that is included in accumulated deficit , offset by $ 12.5 million that is related to the issuance of preferred stock and warrants . on may 20 , 2015 , we issued preferred stock and warrants for $ 31.0 million and concurrently reduced our debt obligations by $ 18.5 million , which consists of an accelerated principal payment of $ 10.0 million and $ 8.5 million of converted subordinated debt . liquidity and capital resources story_separator_special_tag become more restrictive over time . financial covenants include the following : replace_table_token_17_th we are also obligated to maintain a minimum valuation ratio computed on the outstanding principal balance of our senior debt compared to the sum of our valuations of our content library and our investment in acl . to the extent the valuation ratio exceeds the allowed threshold ; we are obligated to make an additional principal payment such that the threshold would not be exceeded after giving effect to this payment . the valuation threshold is 83 % as long as the unpaid principal balance exceeds $ 65.0 million and 75 % thereafter . the credit agreement contains events of default that include , among others , non-payment of principal , interest or fees , violation of covenants , inaccuracy of representations and warranties , bankruptcy and insolvency events , material judgments , cross defaults to certain other contracts ( including , for example , business arrangements with our u.s. distribution facilitation partner and other material contracts ) and indebtedness and events constituting a change of control or a material adverse effect in any of our results of operations or conditions ( financial or otherwise ) . the occurrence of an event of default would increase the applicable rate of interest and could result in the acceleration of our obligations under the credit agreement . the credit agreement imposes restrictions on such items as encumbrances and liens , payments of dividends , other indebtedness , stock repurchases , capital expenditures and entering into new lease obligations . additional covenants restrict our ability to make certain investments , such as loans and equity investments , or investments in content that are not in the ordinary course of business . pursuant to the amended credit agreement , we must maintain at all times a cash balance of $ 1.0 million . as of december 31 , 2015 , we were in compliance with all covenants as stipulated in the amended credit agreement . in connection with the sale of preferred stock and warrants , we used $ 10.0 million of the cash proceeds to make partial payment on the credit agreement and approximately $ 1.9 million for prepayment penalties , legal and accounting fees and other expenses associated with the transaction . 36 subordinated notes payable upon consummation of the business combination , we issued unsecured subordinated promissory notes in the aggregate principal amount of $ 14.8 million to the selling preferred stockholders of image ( or subordinated note holders ) . the subordinated promissory notes mature on the earlier of october 3 , 2018 or six months after the latest stated maturity of the senior debt issued pursuant to the credit agreement . the unsecured subordinated promissory notes currently bear an interest rate of 1.5 % per annum , of which 45 % is payable in cash annually and the balance is accrued and added to the principal , which is payable upon maturity . during the second quarter of 2014 , interest was due of $ 992,000 and added to the principal balance of these notes and the remainder was paid to the debt holders . at december 31 , 2014 , our principal balance due pursuant to these notes was $ 16.0 million . on april 15 , 2015 , we entered into an agreement to

readers are urged to carefully review and consider the various disclosures made by us , which attempt to advise interested parties of the risks , uncertainties , and other factors that affect our business , set forth in detail in item 1a of part i , under the heading “ risk factors . ” the following discussion and analysis should be read in conjunction with our consolidated financial statements and the related notes to those statements contained elsewhere in this annual report on form 10-k. general overview we provide leading edge frozen shipping logistics solutions to the biotechnology and life science industries . since 2008 , through the combination of purpose-built proprietary hardware and software technologies and logistics knowhow known as “ total turnkey management ” we have provided total logistics management to the biotechnology and life sciences industries . our solutions are disruptive to “ old technologies ” and provide reliable , economic alternatives to currently existing products and services utilized for frozen shipping in biotechnology and life sciences including stem cells , cell lines , vaccines , diagnostic materials , semen and embryos for in-vitro fertilization , cord blood , bio-pharmaceuticals , infectious substances and other items that require continuous exposure to frozen or cryogenic temperatures . in addition , our solutions can contribute to the reliability , efficiency , and effectiveness of clinical trials . cryoport express ® solutions include a cloud-based logistics management software branded as the cryoportal tm . the cryoportal supports the management of the entire shipment process through a single interface which includes initial order input , document preparation , customs clearance , courier management , shipment tracking , issue resolution , and delivery . cryoport 's total turnkey logistics solutions offer reliability , cost effectiveness , and convenience , while the use of recyclable and reusable components provides “ green ” , environmentally friendly solutions . the cryoportal provides an array of unique information dashboards and validation documentation for each and every shipment . integral to our logistics solutions are the cryoport liquid nitrogen dry vapor shippers ( cryoport express ® shippers ) which are cost-effective and reusable cryogenic transport containers ( patented vacuum flasks ) utilizing innovative liquid nitrogen ( ln2 ) “ dry vapor ” technology . cryoport express ® shippers are non-hazardous , iata ( international air transport association ) certified , and validated to maintain stable temperatures below minus 150° celsius for a 10-plus day dynamic shipment period . the company currently features two cryoport express ® shipper models , the standard dry shipper ( holding up to approximately 75-2.0 ml vials ) and the high volume dry shipper ( holding up to approximately 500-2.0 ml vials ) . cryoport express ® solutions include recording and retaining a fully documented “ chain-of-custody ” and , at the client 's option , “ chain-of-condition ” for every shipment , helping ensure that quality , safety , efficacy , and stability of shipped commodities are maintained . this recorded and archived information allows our customers to meet the exacting requirements necessary for scientific work and for regulatory purposes . cryoport express ® solutions can be used by customers , as a “ turnkey ” solution , through direct access to the cloud-based cryoportal , or by contacting cryoport client care for order entry tasks . cryoport provides 24/7/365 logistics services through its client care team and also provides complete training and process management services to support each client 's specific requirements . since 2010 , cryoport express ® solutions have been the company 's principal focus for development and commercialization . during fiscal year 2013 , the company approach to the market was adjusted to a solutions orientation and it expanded its service offering to address specific market needs in the biotechnology and life science industries . as a solutions provider , cryoport tailors frozen logistics solutions to client requirements . in addition to custom solutions , the company 's primary customer facing solutions offerings are as follows : cryoport express ® solution the fully outsourced turnkey logistics solution described herein . customer-staged solution cryoport ships an inventory of cryoport express ® shippers to the customer ( uncharged and in bulk ) enabling the customer to charge the shippers at their facility , process their orders through the cryoportal which permits cryoport client care to oversee the each shipment and the return the shippers to cryoport for cleaning , testing and refurbishing . cryoport client care provides the 24/7/365 logistics services utilizing its cryoportal logistics platform . 26 customer-managed solution cryoport ships a fully charged cryoport express ® shipper ( s ) to the customer enabling the customer to utilize its internal expertise to manage all or a portion of the logistics services . as with the above solutions , the shippers are returned to cryoport for cleaning , testing and refurbishing within a pre-determined time period . customer integrated logistics the cryoport logistics team provides a tailored and full range of logistics support solutions . in addition to tailoring a management solution , the robust , enterprise grade cryoportal is used to provide complete logistics services while enabling the customer to utilize their own packaging solutions or cryoport express ® shippers . cryoport can provide onsite logistics personnel allowing the customer to fully outsource their cold chain logistics needs to cryoport and focus on its core competencies . distribution partnerships “ powered by cryoport ” is an important partnership arrangements with integrators , freight forwarders and other logistics providers , enabling partners to expand their solutions offering by adding the total cryoport express ® shipper solution to their customer offering . story_separator_special_tag once established , write-downs are considered permanent adjustments to the cost basis of the obsolete or unmarketable inventories . our business plan focuses on per-use leasing of the shipping container and value-added services that will be used by us to provide an end-to-end and cost-optimized shipping solution . we provide shipping containers to our customers and charge a fee in exchange for the use of the container . our arrangements are similar to the accounting standard for leases since we convey the right to use the containers over a period of time . we retain title to the containers and provide our customers the use of the container for a specified shipping cycle . at the culmination of the customer 's shipping cycle , the container is returned to us . the company 's current inventory consists of accessories that are sold and shipped to customers along with loaned containers and not returned to the company with the containers at the culmination of the customer 's shipping cycle . property and equipment property and equipment are stated at cost , net of accumulated depreciation and amortization . depreciation and amortization of fixed assets are provided using the straight-line method over the following useful lives : cryoport express ® shippers 3 years furniture and fixtures 7 years machinery and equipment 5-7 years leasehold improvements lesser of lease term or estimated useful life betterments , renewals and extraordinary repairs that extend the lives of the assets are capitalized ; other repairs and maintenance charges are expensed as incurred . the cost and related accumulated depreciation and amortization applicable to assets retired are removed from the accounts , and the gain or loss on disposition is recognized in current operations . intangible assets intangible assets comprise patents and trademarks and software development costs . the company capitalizes costs of obtaining patents and trademarks which are amortized , using the straight-line method over their estimated useful life of five years . the company capitalizes certain costs related to software developed for internal use . software development costs incurred during the preliminary or maintenance project stages are expensed as incurred , while costs incurred during the application development stage are capitalized and amortized using the straight-line method over the estimated useful life of the software , which is five years . capitalized costs include purchased materials and costs of services including the valuation of warrants issued to consultants . 31 long-lived assets the company assesses the recoverability of its long-lived assets by determining whether the depreciation and amortization of long-lived assets over their remaining lives can be recovered through projected undiscounted cash flows . the amount of long-lived asset impairment is measured based on fair value and is charged to operations in the period in which long-lived asset impairment is determined by management . manufacturing fixed assets are subject to obsolescence potential as result of changes in customer demands , manufacturing process changes and changes in materials used . the company is not currently aware of any such changes that would cause impairment to the value of its manufacturing fixed assets . stock-based compensation we recognize compensation costs for all stock-based awards made to employees and directors . the fair value of stock-based awards is estimated at grant date using an option pricing model and the portion that is ultimately expected to vest is recognized as compensation cost over the requisite service period . we use the black-scholes option-pricing model to estimate the fair value of stock-based awards . the determination of fair value using the black-scholes option-pricing model is affected by our stock price as well as assumptions regarding a number of complex and subjective variables , including expected stock price volatility , risk-free interest rate , expected dividends and projected employee stock option exercise behaviors . we estimate the expected term based on the contractual term of the awards and employees ' exercise and expected post-vesting termination behavior . derivative liabilities our issued and outstanding common stock purchase warrants previously treated as equity pursuant to the derivative treatment exemption were no longer afforded equity treatment , and the fair value of these common stock purchase warrants , some of which have exercise price reset features and some that were issued with convertible debt , was reclassified from equity to liability status as if these warrants were treated as a derivative liability since their date of issue . the common stock purchase warrants were not issued with the intent of effectively hedging any future cash flow , fair value of any asset , liability or any net investment in a foreign operation . the warrants do not qualify for hedge accounting , and as such , all future changes in the fair value of these warrants will be recognized currently in earnings until such time as the warrants are exercised or expire . these common stock purchase warrants do not trade in an active securities market , and as such , we estimate the fair value of these warrants using the black-scholes option pricing model . convertible debentures if a conversion feature of conventional convertible debt is not accounted for as a derivative instrument and provides for a rate of conversion that is below market value , this feature is characterized as a beneficial conversion feature ( “ bcf ” ) . a bcf is recorded by the company as a debt discount . in those circumstances , the convertible debt will be recorded net of the discount related to the bcf . the company amortizes the discount to interest expense over the life of the debt using the effective interest method . deferred financing costs deferred financing costs represent costs incurred in connection with the issuance of the convertible notes payable and private equity financing . deferred financing costs are being amortized over the term of the financing instrument on a straight-line basis , which approximates the effective interest method or netted against the gross proceeds received from equity financing . income taxes

liquidity and capital resources as of march 31 , 2013 , the company had cash and cash equivalents of $ 563,104 and negative working capital of $ 1,539,103. as of march 31 , 2012 , the company had cash and cash equivalents of $ 4,617,535 and working capital of $ 4,024,120. historically , we have financed our operations primarily through sales of our debt and equity securities . from march 2005 through march 2013 , we have received net proceeds of approximately $ 34.1 million from sales of our common stock and the issuance of promissory notes , warrants and debt . 29 for the year ended march 31 , 2013 , we used $ 4,785,144 of cash for operations primarily as a result of the net loss of $ 6,382,433 including non-cash expenses of $ 693,180 for the fair value of stock options and warrants . net operating losses decreased as a result of a decrease in headcount . offsetting the cash impact of our net operating loss ( excluding non-cash items ) was an increase in accounts payable and accrued expenses of $ 443,562. net cash used in operating activities also was offset by $ 2,525 for other working capital uses .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources as of march 31 , 2013 , the company had cash and cash equivalents of $ 563,104 and negative working capital of $ 1,539,103. as of march 31 , 2012 , the company had cash and cash equivalents of $ 4,617,535 and working capital of $ 4,024,120. historically , we have financed our operations primarily through sales of our debt and equity securities . from march 2005 through march 2013 , we have received net proceeds of approximately $ 34.1 million from sales of our common stock and the issuance of promissory notes , warrants and debt . 29 for the year ended march 31 , 2013 , we used $ 4,785,144 of cash for operations primarily as a result of the net loss of $ 6,382,433 including non-cash expenses of $ 693,180 for the fair value of stock options and warrants . net operating losses decreased as a result of a decrease in headcount . offsetting the cash impact of our net operating loss ( excluding non-cash items ) was an increase in accounts payable and accrued expenses of $ 443,562. net cash used in operating activities also was offset by $ 2,525 for other working capital uses . ``` Suspicious Activity Report : readers are urged to carefully review and consider the various disclosures made by us , which attempt to advise interested parties of the risks , uncertainties , and other factors that affect our business , set forth in detail in item 1a of part i , under the heading “ risk factors . ” the following discussion and analysis should be read in conjunction with our consolidated financial statements and the related notes to those statements contained elsewhere in this annual report on form 10-k. general overview we provide leading edge frozen shipping logistics solutions to the biotechnology and life science industries . since 2008 , through the combination of purpose-built proprietary hardware and software technologies and logistics knowhow known as “ total turnkey management ” we have provided total logistics management to the biotechnology and life sciences industries . our solutions are disruptive to “ old technologies ” and provide reliable , economic alternatives to currently existing products and services utilized for frozen shipping in biotechnology and life sciences including stem cells , cell lines , vaccines , diagnostic materials , semen and embryos for in-vitro fertilization , cord blood , bio-pharmaceuticals , infectious substances and other items that require continuous exposure to frozen or cryogenic temperatures . in addition , our solutions can contribute to the reliability , efficiency , and effectiveness of clinical trials . cryoport express ® solutions include a cloud-based logistics management software branded as the cryoportal tm . the cryoportal supports the management of the entire shipment process through a single interface which includes initial order input , document preparation , customs clearance , courier management , shipment tracking , issue resolution , and delivery . cryoport 's total turnkey logistics solutions offer reliability , cost effectiveness , and convenience , while the use of recyclable and reusable components provides “ green ” , environmentally friendly solutions . the cryoportal provides an array of unique information dashboards and validation documentation for each and every shipment . integral to our logistics solutions are the cryoport liquid nitrogen dry vapor shippers ( cryoport express ® shippers ) which are cost-effective and reusable cryogenic transport containers ( patented vacuum flasks ) utilizing innovative liquid nitrogen ( ln2 ) “ dry vapor ” technology . cryoport express ® shippers are non-hazardous , iata ( international air transport association ) certified , and validated to maintain stable temperatures below minus 150° celsius for a 10-plus day dynamic shipment period . the company currently features two cryoport express ® shipper models , the standard dry shipper ( holding up to approximately 75-2.0 ml vials ) and the high volume dry shipper ( holding up to approximately 500-2.0 ml vials ) . cryoport express ® solutions include recording and retaining a fully documented “ chain-of-custody ” and , at the client 's option , “ chain-of-condition ” for every shipment , helping ensure that quality , safety , efficacy , and stability of shipped commodities are maintained . this recorded and archived information allows our customers to meet the exacting requirements necessary for scientific work and for regulatory purposes . cryoport express ® solutions can be used by customers , as a “ turnkey ” solution , through direct access to the cloud-based cryoportal , or by contacting cryoport client care for order entry tasks . cryoport provides 24/7/365 logistics services through its client care team and also provides complete training and process management services to support each client 's specific requirements . since 2010 , cryoport express ® solutions have been the company 's principal focus for development and commercialization . during fiscal year 2013 , the company approach to the market was adjusted to a solutions orientation and it expanded its service offering to address specific market needs in the biotechnology and life science industries . as a solutions provider , cryoport tailors frozen logistics solutions to client requirements . in addition to custom solutions , the company 's primary customer facing solutions offerings are as follows : cryoport express ® solution the fully outsourced turnkey logistics solution described herein . customer-staged solution cryoport ships an inventory of cryoport express ® shippers to the customer ( uncharged and in bulk ) enabling the customer to charge the shippers at their facility , process their orders through the cryoportal which permits cryoport client care to oversee the each shipment and the return the shippers to cryoport for cleaning , testing and refurbishing . cryoport client care provides the 24/7/365 logistics services utilizing its cryoportal logistics platform . 26 customer-managed solution cryoport ships a fully charged cryoport express ® shipper ( s ) to the customer enabling the customer to utilize its internal expertise to manage all or a portion of the logistics services . as with the above solutions , the shippers are returned to cryoport for cleaning , testing and refurbishing within a pre-determined time period . customer integrated logistics the cryoport logistics team provides a tailored and full range of logistics support solutions . in addition to tailoring a management solution , the robust , enterprise grade cryoportal is used to provide complete logistics services while enabling the customer to utilize their own packaging solutions or cryoport express ® shippers . cryoport can provide onsite logistics personnel allowing the customer to fully outsource their cold chain logistics needs to cryoport and focus on its core competencies . distribution partnerships “ powered by cryoport ” is an important partnership arrangements with integrators , freight forwarders and other logistics providers , enabling partners to expand their solutions offering by adding the total cryoport express ® shipper solution to their customer offering . story_separator_special_tag once established , write-downs are considered permanent adjustments to the cost basis of the obsolete or unmarketable inventories . our business plan focuses on per-use leasing of the shipping container and value-added services that will be used by us to provide an end-to-end and cost-optimized shipping solution . we provide shipping containers to our customers and charge a fee in exchange for the use of the container . our arrangements are similar to the accounting standard for leases since we convey the right to use the containers over a period of time . we retain title to the containers and provide our customers the use of the container for a specified shipping cycle . at the culmination of the customer 's shipping cycle , the container is returned to us . the company 's current inventory consists of accessories that are sold and shipped to customers along with loaned containers and not returned to the company with the containers at the culmination of the customer 's shipping cycle . property and equipment property and equipment are stated at cost , net of accumulated depreciation and amortization . depreciation and amortization of fixed assets are provided using the straight-line method over the following useful lives : cryoport express ® shippers 3 years furniture and fixtures 7 years machinery and equipment 5-7 years leasehold improvements lesser of lease term or estimated useful life betterments , renewals and extraordinary repairs that extend the lives of the assets are capitalized ; other repairs and maintenance charges are expensed as incurred . the cost and related accumulated depreciation and amortization applicable to assets retired are removed from the accounts , and the gain or loss on disposition is recognized in current operations . intangible assets intangible assets comprise patents and trademarks and software development costs . the company capitalizes costs of obtaining patents and trademarks which are amortized , using the straight-line method over their estimated useful life of five years . the company capitalizes certain costs related to software developed for internal use . software development costs incurred during the preliminary or maintenance project stages are expensed as incurred , while costs incurred during the application development stage are capitalized and amortized using the straight-line method over the estimated useful life of the software , which is five years . capitalized costs include purchased materials and costs of services including the valuation of warrants issued to consultants . 31 long-lived assets the company assesses the recoverability of its long-lived assets by determining whether the depreciation and amortization of long-lived assets over their remaining lives can be recovered through projected undiscounted cash flows . the amount of long-lived asset impairment is measured based on fair value and is charged to operations in the period in which long-lived asset impairment is determined by management . manufacturing fixed assets are subject to obsolescence potential as result of changes in customer demands , manufacturing process changes and changes in materials used . the company is not currently aware of any such changes that would cause impairment to the value of its manufacturing fixed assets . stock-based compensation we recognize compensation costs for all stock-based awards made to employees and directors . the fair value of stock-based awards is estimated at grant date using an option pricing model and the portion that is ultimately expected to vest is recognized as compensation cost over the requisite service period . we use the black-scholes option-pricing model to estimate the fair value of stock-based awards . the determination of fair value using the black-scholes option-pricing model is affected by our stock price as well as assumptions regarding a number of complex and subjective variables , including expected stock price volatility , risk-free interest rate , expected dividends and projected employee stock option exercise behaviors . we estimate the expected term based on the contractual term of the awards and employees ' exercise and expected post-vesting termination behavior . derivative liabilities our issued and outstanding common stock purchase warrants previously treated as equity pursuant to the derivative treatment exemption were no longer afforded equity treatment , and the fair value of these common stock purchase warrants , some of which have exercise price reset features and some that were issued with convertible debt , was reclassified from equity to liability status as if these warrants were treated as a derivative liability since their date of issue . the common stock purchase warrants were not issued with the intent of effectively hedging any future cash flow , fair value of any asset , liability or any net investment in a foreign operation . the warrants do not qualify for hedge accounting , and as such , all future changes in the fair value of these warrants will be recognized currently in earnings until such time as the warrants are exercised or expire . these common stock purchase warrants do not trade in an active securities market , and as such , we estimate the fair value of these warrants using the black-scholes option pricing model . convertible debentures if a conversion feature of conventional convertible debt is not accounted for as a derivative instrument and provides for a rate of conversion that is below market value , this feature is characterized as a beneficial conversion feature ( “ bcf ” ) . a bcf is recorded by the company as a debt discount . in those circumstances , the convertible debt will be recorded net of the discount related to the bcf . the company amortizes the discount to interest expense over the life of the debt using the effective interest method . deferred financing costs deferred financing costs represent costs incurred in connection with the issuance of the convertible notes payable and private equity financing . deferred financing costs are being amortized over the term of the financing instrument on a straight-line basis , which approximates the effective interest method or netted against the gross proceeds received from equity financing . income taxes

a material adverse effect on our liquidity , as we would be required to finance our crude oil , intermediate and refined products inventory covered by the agreements . additionally , we are obligated to repurchase from j. aron certain j. aron products located at our j. aron storage tanks upon termination of these agreements ; restrictive covenants in our indebtedness that may adversely affect our operational flexibility ; payments by pbf energy to the current and former holders of pbf llc series a units and pbf llc series b units under pbf energy 's tax receivable agreement for certain tax benefits we may claim ; our assumptions regarding payments arising under pbf energy 's tax receivable agreement and other arrangements relating to our organizational structure are subject to change due to various factors , including , among other factors , the timing of exchanges of pbf llc series a units for shares of pbf energy class a common stock as contemplated by the tax receivable agreement , the price of pbf energy class a common stock at the time of such exchanges , the extent to which such exchanges are taxable , and the amount and timing of our income ; our expectations and timing with respect to our acquisition activity and whether such acquisitions are accretive or dilutive to shareholders ; the impact of disruptions to crude or feedstock supply to any of our refineries , including disruptions due to problems at pbfx or with third-party logistics infrastructure or operations , including pipeline , marine and rail transportation ; the possibility that we might not make further dividend payments ; the inability of our subsidiaries to freely pay dividends or make distributions to us ; the impact of current and future laws , rulings and governmental regulations , including the implementation of rules and regulations regarding transportation of crude oil by rail ; the threat of cyber-attacks ; our increased dependence on technology ; the effectiveness of our crude oil sourcing strategies , including our crude by rail strategy and related commitments ; adverse impacts related to legislation by the federal government lifting the restrictions on exporting u.s. crude oil ; adverse impacts from changes in our regulatory environment , such as the effects of compliance with ab32 , or from actions taken by environmental interest groups ; market risks related to the volatility in the price of rins required to comply with the renewable fuel standard and ghg emission credits required to comply with various ghg emission programs , such as ab32 ; our ability to complete the successful integration of the martinez refinery and any other acquisitions into our business and to realize the benefits from such acquisitions ; unforeseen liabilities associated with the martinez acquisition and any other acquisitions ; risk associated with the operation of pbfx as a separate , publicly-traded entity ; potential tax consequences related to our investment in pbfx ; and any decisions we continue to make with respect to our energy-related logistics assets that may be transferred to pbfx . 67 we caution you that the foregoing list of important factors may not contain all of the material factors that are important to you . in addition , in light of these risks and uncertainties , the matters referred to in the forward-looking statements contained in this annual report on form 10-k may not in fact occur . accordingly , investors should not place undue reliance on those statements . our forward-looking statements speak only as of the date of this annual report on form 10-k. except as required by applicable law , including the securities laws of the united states , we do not intend to update or revise any forward-looking statements . all subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing . executive summary our business operations are conducted by pbf llc and its subsidiaries . we were formed in march 2008 to pursue the acquisitions of crude oil refineries and downstream assets in north america . we own and operate six domestic oil refineries and related assets located in delaware city , delaware , paulsboro , new jersey , toledo , ohio , chalmette , louisiana , torrance , california , and martinez , california . based on current configuration ( subsequent to the east coast refining reconfiguration ) , our refineries have a combined processing capacity , known as throughput , of approximately 1,000,000 bpd , and a weighted-average nelson complexity index of 13.2 based on current operating conditions . the complexity and throughput capacity of our refineries are subject to change dependent upon configuration changes we make to respond to market conditions as well as a result of investments made to improve our facilities and maintain compliance with environmental and governmental regulations . we operate in two reportable business segments : refining and logistics . our six oil refineries are all engaged in the refining of crude oil and other feedstocks into petroleum products , and are aggregated into the refining segment . pbfx operates certain logistical assets such as crude oil and refined petroleum products terminals , pipelines , and storage facilities , which are aggregated into the logistics segment . factors affecting comparability our results over the past three years have been affected by the following events , the understanding of which will aid in assessing the comparability of our period to period financial performance and financial condition . covid-19 and market developments the impact of the unprecedented global health and economic crisis sparked by the covid-19 pandemic was amplified late in the quarter ended march 31 , 2020 due to movements made by the world 's largest oil producers to increase market share . this created simultaneous shocks in oil supply and demand resulting in an economic challenge to our industry which has not occurred since our formation . story_separator_special_tag effective with completion of the initial public offering , pbf energy consolidates the financial results of pbf llc and its subsidiaries and records a noncontrolling interest in its consolidated financial statements representing the economic interests of pbf llc unitholders other than pbf energy . additionally , a series of secondary offerings were made subsequent to our ipo whereby funds affiliated with the blackstone group l.p. ( “ blackstone ” ) and first reserve management l.p. ( “ first reserve ” ) sold their interests in us . as a result of these secondary offerings , blackstone and first reserve no longer hold any pbf llc series a units . on august 14 , 2018 , pbf energy completed a public offering of an aggregate of 6,000,000 shares of pbf energy class a common stock for net proceeds of $ 287.3 million , after deducting underwriting discounts and commissions and other offering expenses ( the “ august 2018 equity offering ” ) . as of december 31 , 2020 , including the offerings described above , pbf energy owns 120,122,872 pbf llc series c units and our current and former executive officers and directors and certain employees and others beneficially own 970,647 pbf llc series a units . the holders of our issued and outstanding shares of pbf energy class a common stock have 99.2 % of the voting power in us and the members of pbf llc , other than pbf energy through their holdings of class b common stock , have the remaining 0.8 % of the voting power in us . pbfx equity offerings on april 24 , 2019 , pbfx entered into subscription agreements to sell an aggregate of 6,585,500 common units to certain institutional investors in a registered direct offering ( the “ 2019 registered direct offering ” ) for gross proceeds of approximately $ 135.0 million . the 2019 registered direct offering closed on april 29 , 2019. on july 30 , 2018 , pbfx closed on a common unit purchase agreement with certain funds managed by tortoise capital advisors , l.l.c . providing for the issuance and sale in a registered direct offering of an aggregate of 1,775,750 common units for net proceeds of approximately $ 34.9 million . as of december 31 , 2020 , pbf llc held a 48.0 % limited partner interest in pbfx with the remaining 52.0 % limited partner interest owned by public common unitholders . pbfx assets and transactions pbfx 's assets consist of various logistics assets ( as described in “ item 1. business ” ) . apart from business associated with certain third-party acquisitions , pbfx 's revenues are derived from long-term , fee-based commercial agreements with subsidiaries of pbf holding , which include minimum volume commitments , for receiving , handling , transferring and storing crude oil , refined products and natural gas . these transactions are eliminated by pbf energy and pbf llc in consolidation . since the inception of pbfx in 2014 , pbf llc and pbfx have entered into a series of drop-down transactions . such transactions and third-party acquisitions made by pbfx occurring in the three years ended december 31 , 2020 are discussed below . 73 tvpc acquisition on april 24 , 2019 , pbfx entered into the tvpc contribution agreement , pursuant to which pbf llc contributed to pbfx all of the issued and outstanding limited liability company interests of tvp holding for total consideration of $ 200.0 million . prior to the tvpc acquisition , tvp holding owned a 50 % membership interest in tvpc . subsequent to the closing of the tvpc acquisition on may 31 , 2019 , pbfx owns 100 % of the membership interests in tvpc . the transaction was financed through a combination of proceeds from the 2019 registered direct offering and borrowings under the pbfx revolving credit facility . pbfx idr restructuring on february 28 , 2019 , pbfx closed on the idr restructuring agreement with pbf llc and pbf gp , pursuant to which pbfx 's idrs held by pbf llc were canceled and converted into 10,000,000 newly issued pbfx common units . subsequent to the closing of the idr restructuring , no distributions were made to pbf llc with respect to the idrs and the newly issued pbfx common units are entitled to normal distributions by pbfx . east coast storage assets acquisition on october 1 , 2018 , pbfx closed on its agreement with crown point to purchase its wholly-owned subsidiary , cpi operations llc ( the “ east coast storage assets acquisition ” ) for total consideration of approximately $ 127.0 million , including working capital and the contingent consideration ( as defined in “ note 4 - acquisitions ” of our notes to consolidated financial statements ) , comprised of an initial payment at closing of $ 75.0 million with a remaining balance of $ 32.0 million that was paid on october 1 , 2019. the residual purchase consideration consists of an earn-out provision related to an existing commercial agreement with a third-party , based on the future results of certain of the acquired idled assets ( the “ pbfx contingent consideration ” ) . the consideration was financed through a combination of cash on hand and borrowings under the pbfx revolving credit facility . development assets acquisition on july 16 , 2018 , pbfx and pbf llc entered into the development assets contribution agreements , pursuant to which pbfx acquired from pbf llc all of the issued and outstanding limited liability company interests of toledo rail logistics company llc , whose assets consist of a loading and unloading rail facility located at pbf holding 's toledo refinery ( the “ toledo rail products facility ” ) ; chalmette logistics company llc , whose assets consist of a truck loading rack facility ( the “ chalmette truck rack ” ) and a rail yard facility ( the “ chalmette rosin yard ” ) , both of which

cash flow analysis cash flows from operating activities net cash used in operating activities was $ ( 631.6 ) million for the year ended december 31 , 2020 compared to net cash provided by operating activities of $ 933.5 million for the year ended december 31 , 2019. our operating cash flows for the year ended december 31 , 2020 included our net loss of $ 1,333.3 million , gain on sale of assets of $ 477.8 million mainly related to the sale of the hydrogen plants and the sale of land at our torrance refinery , change in the tax receivable agreement liability of $ 373.5 million , net non-cash charges relating to the change in the fair value of our inventory repurchase obligations of $ 12.6 million and change in the fair value of the contingent consideration of $ 93.7 million , partially offset by depreciation and amortization of $ 581.1 million , net non-cash charge of $ 268.0 million relating to an lcm inventory adjustment , impairment expense of $ 98.8 million , pension and other post-retirement benefits costs of $ 55.7 million , stock-based compensation of $ 34.2 million , debt extinguishment costs related to the early redemption of our 2023 senior notes of $ 22.2 million , change in the fair value of our catalyst obligations of $ 11.8 million and deferred income taxes of $ 1.6 million . in addition , net changes in operating assets and liabilities reflects cash inflows of $ 585.9 million driven by the timing of inventory purchases , payments for accrued expenses and accounts payable and collections of accounts receivable .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 cash flows from operating activities net cash used in operating activities was $ ( 631.6 ) million for the year ended december 31 , 2020 compared to net cash provided by operating activities of $ 933.5 million for the year ended december 31 , 2019. our operating cash flows for the year ended december 31 , 2020 included our net loss of $ 1,333.3 million , gain on sale of assets of $ 477.8 million mainly related to the sale of the hydrogen plants and the sale of land at our torrance refinery , change in the tax receivable agreement liability of $ 373.5 million , net non-cash charges relating to the change in the fair value of our inventory repurchase obligations of $ 12.6 million and change in the fair value of the contingent consideration of $ 93.7 million , partially offset by depreciation and amortization of $ 581.1 million , net non-cash charge of $ 268.0 million relating to an lcm inventory adjustment , impairment expense of $ 98.8 million , pension and other post-retirement benefits costs of $ 55.7 million , stock-based compensation of $ 34.2 million , debt extinguishment costs related to the early redemption of our 2023 senior notes of $ 22.2 million , change in the fair value of our catalyst obligations of $ 11.8 million and deferred income taxes of $ 1.6 million . in addition , net changes in operating assets and liabilities reflects cash inflows of $ 585.9 million driven by the timing of inventory purchases , payments for accrued expenses and accounts payable and collections of accounts receivable . ``` Suspicious Activity Report : a material adverse effect on our liquidity , as we would be required to finance our crude oil , intermediate and refined products inventory covered by the agreements . additionally , we are obligated to repurchase from j. aron certain j. aron products located at our j. aron storage tanks upon termination of these agreements ; restrictive covenants in our indebtedness that may adversely affect our operational flexibility ; payments by pbf energy to the current and former holders of pbf llc series a units and pbf llc series b units under pbf energy 's tax receivable agreement for certain tax benefits we may claim ; our assumptions regarding payments arising under pbf energy 's tax receivable agreement and other arrangements relating to our organizational structure are subject to change due to various factors , including , among other factors , the timing of exchanges of pbf llc series a units for shares of pbf energy class a common stock as contemplated by the tax receivable agreement , the price of pbf energy class a common stock at the time of such exchanges , the extent to which such exchanges are taxable , and the amount and timing of our income ; our expectations and timing with respect to our acquisition activity and whether such acquisitions are accretive or dilutive to shareholders ; the impact of disruptions to crude or feedstock supply to any of our refineries , including disruptions due to problems at pbfx or with third-party logistics infrastructure or operations , including pipeline , marine and rail transportation ; the possibility that we might not make further dividend payments ; the inability of our subsidiaries to freely pay dividends or make distributions to us ; the impact of current and future laws , rulings and governmental regulations , including the implementation of rules and regulations regarding transportation of crude oil by rail ; the threat of cyber-attacks ; our increased dependence on technology ; the effectiveness of our crude oil sourcing strategies , including our crude by rail strategy and related commitments ; adverse impacts related to legislation by the federal government lifting the restrictions on exporting u.s. crude oil ; adverse impacts from changes in our regulatory environment , such as the effects of compliance with ab32 , or from actions taken by environmental interest groups ; market risks related to the volatility in the price of rins required to comply with the renewable fuel standard and ghg emission credits required to comply with various ghg emission programs , such as ab32 ; our ability to complete the successful integration of the martinez refinery and any other acquisitions into our business and to realize the benefits from such acquisitions ; unforeseen liabilities associated with the martinez acquisition and any other acquisitions ; risk associated with the operation of pbfx as a separate , publicly-traded entity ; potential tax consequences related to our investment in pbfx ; and any decisions we continue to make with respect to our energy-related logistics assets that may be transferred to pbfx . 67 we caution you that the foregoing list of important factors may not contain all of the material factors that are important to you . in addition , in light of these risks and uncertainties , the matters referred to in the forward-looking statements contained in this annual report on form 10-k may not in fact occur . accordingly , investors should not place undue reliance on those statements . our forward-looking statements speak only as of the date of this annual report on form 10-k. except as required by applicable law , including the securities laws of the united states , we do not intend to update or revise any forward-looking statements . all subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing . executive summary our business operations are conducted by pbf llc and its subsidiaries . we were formed in march 2008 to pursue the acquisitions of crude oil refineries and downstream assets in north america . we own and operate six domestic oil refineries and related assets located in delaware city , delaware , paulsboro , new jersey , toledo , ohio , chalmette , louisiana , torrance , california , and martinez , california . based on current configuration ( subsequent to the east coast refining reconfiguration ) , our refineries have a combined processing capacity , known as throughput , of approximately 1,000,000 bpd , and a weighted-average nelson complexity index of 13.2 based on current operating conditions . the complexity and throughput capacity of our refineries are subject to change dependent upon configuration changes we make to respond to market conditions as well as a result of investments made to improve our facilities and maintain compliance with environmental and governmental regulations . we operate in two reportable business segments : refining and logistics . our six oil refineries are all engaged in the refining of crude oil and other feedstocks into petroleum products , and are aggregated into the refining segment . pbfx operates certain logistical assets such as crude oil and refined petroleum products terminals , pipelines , and storage facilities , which are aggregated into the logistics segment . factors affecting comparability our results over the past three years have been affected by the following events , the understanding of which will aid in assessing the comparability of our period to period financial performance and financial condition . covid-19 and market developments the impact of the unprecedented global health and economic crisis sparked by the covid-19 pandemic was amplified late in the quarter ended march 31 , 2020 due to movements made by the world 's largest oil producers to increase market share . this created simultaneous shocks in oil supply and demand resulting in an economic challenge to our industry which has not occurred since our formation . story_separator_special_tag effective with completion of the initial public offering , pbf energy consolidates the financial results of pbf llc and its subsidiaries and records a noncontrolling interest in its consolidated financial statements representing the economic interests of pbf llc unitholders other than pbf energy . additionally , a series of secondary offerings were made subsequent to our ipo whereby funds affiliated with the blackstone group l.p. ( “ blackstone ” ) and first reserve management l.p. ( “ first reserve ” ) sold their interests in us . as a result of these secondary offerings , blackstone and first reserve no longer hold any pbf llc series a units . on august 14 , 2018 , pbf energy completed a public offering of an aggregate of 6,000,000 shares of pbf energy class a common stock for net proceeds of $ 287.3 million , after deducting underwriting discounts and commissions and other offering expenses ( the “ august 2018 equity offering ” ) . as of december 31 , 2020 , including the offerings described above , pbf energy owns 120,122,872 pbf llc series c units and our current and former executive officers and directors and certain employees and others beneficially own 970,647 pbf llc series a units . the holders of our issued and outstanding shares of pbf energy class a common stock have 99.2 % of the voting power in us and the members of pbf llc , other than pbf energy through their holdings of class b common stock , have the remaining 0.8 % of the voting power in us . pbfx equity offerings on april 24 , 2019 , pbfx entered into subscription agreements to sell an aggregate of 6,585,500 common units to certain institutional investors in a registered direct offering ( the “ 2019 registered direct offering ” ) for gross proceeds of approximately $ 135.0 million . the 2019 registered direct offering closed on april 29 , 2019. on july 30 , 2018 , pbfx closed on a common unit purchase agreement with certain funds managed by tortoise capital advisors , l.l.c . providing for the issuance and sale in a registered direct offering of an aggregate of 1,775,750 common units for net proceeds of approximately $ 34.9 million . as of december 31 , 2020 , pbf llc held a 48.0 % limited partner interest in pbfx with the remaining 52.0 % limited partner interest owned by public common unitholders . pbfx assets and transactions pbfx 's assets consist of various logistics assets ( as described in “ item 1. business ” ) . apart from business associated with certain third-party acquisitions , pbfx 's revenues are derived from long-term , fee-based commercial agreements with subsidiaries of pbf holding , which include minimum volume commitments , for receiving , handling , transferring and storing crude oil , refined products and natural gas . these transactions are eliminated by pbf energy and pbf llc in consolidation . since the inception of pbfx in 2014 , pbf llc and pbfx have entered into a series of drop-down transactions . such transactions and third-party acquisitions made by pbfx occurring in the three years ended december 31 , 2020 are discussed below . 73 tvpc acquisition on april 24 , 2019 , pbfx entered into the tvpc contribution agreement , pursuant to which pbf llc contributed to pbfx all of the issued and outstanding limited liability company interests of tvp holding for total consideration of $ 200.0 million . prior to the tvpc acquisition , tvp holding owned a 50 % membership interest in tvpc . subsequent to the closing of the tvpc acquisition on may 31 , 2019 , pbfx owns 100 % of the membership interests in tvpc . the transaction was financed through a combination of proceeds from the 2019 registered direct offering and borrowings under the pbfx revolving credit facility . pbfx idr restructuring on february 28 , 2019 , pbfx closed on the idr restructuring agreement with pbf llc and pbf gp , pursuant to which pbfx 's idrs held by pbf llc were canceled and converted into 10,000,000 newly issued pbfx common units . subsequent to the closing of the idr restructuring , no distributions were made to pbf llc with respect to the idrs and the newly issued pbfx common units are entitled to normal distributions by pbfx . east coast storage assets acquisition on october 1 , 2018 , pbfx closed on its agreement with crown point to purchase its wholly-owned subsidiary , cpi operations llc ( the “ east coast storage assets acquisition ” ) for total consideration of approximately $ 127.0 million , including working capital and the contingent consideration ( as defined in “ note 4 - acquisitions ” of our notes to consolidated financial statements ) , comprised of an initial payment at closing of $ 75.0 million with a remaining balance of $ 32.0 million that was paid on october 1 , 2019. the residual purchase consideration consists of an earn-out provision related to an existing commercial agreement with a third-party , based on the future results of certain of the acquired idled assets ( the “ pbfx contingent consideration ” ) . the consideration was financed through a combination of cash on hand and borrowings under the pbfx revolving credit facility . development assets acquisition on july 16 , 2018 , pbfx and pbf llc entered into the development assets contribution agreements , pursuant to which pbfx acquired from pbf llc all of the issued and outstanding limited liability company interests of toledo rail logistics company llc , whose assets consist of a loading and unloading rail facility located at pbf holding 's toledo refinery ( the “ toledo rail products facility ” ) ; chalmette logistics company llc , whose assets consist of a truck loading rack facility ( the “ chalmette truck rack ” ) and a rail yard facility ( the “ chalmette rosin yard ” ) , both of which

25 2018 financial and operational highlights revenues were $ 1,088.2 million for the year ended december 31 , 2018 , a 6.3 % increase compared to the year ended december 31 , 2017 . the increase in 2018 revenues compared to 2017 revenues was due to the net effects of : ( i ) higher sales volumes , which increased revenues by $ 25.8 million , or 2.5 % ; ( ii ) higher average selling prices as our product and channel mix continued to change , which increased revenues by $ 27.7 million , or 2.7 % ; and ( iii ) favorable changes in exchange rates , which increased revenues by $ 11.2 million , or 1.1 % . the following were significant developments affecting our businesses and capital structure during the year ended december 31 , 2018 : in 2018 , the impact of operating with a net of 64 fewer company-operated stores and certain business model changes reduced our revenues by approximately $ 60 million . we sold 59.8 million pairs of shoes worldwide , an increase of 3.4 % from 57.9 million pairs in 2017 . gross margin improved 100 basis points compared to 2017 to 51.5 % for the year ended december 31 , 2018 . we drove this improvement by continuing to prioritize high-margin molded products , increasing prices on select products , and conducting fewer promotions in combination with better inventory management . sg & a was $ 495.0 million , an increase of $ 0.4 million , or 0.1 % , compared to 2017 . as a percent of revenues , sg & a improved 280 basis points to 45.5 % of revenues . this included $ 21.1 million of non-recurring charges associated with our previously announced sg & a reduction plan , the completion of the closure of all company-operated manufacturing and related distribution facilities , and some charges related to the relocation of our corporate headquarters , which is planned for early 2020. income from operations was $ 62.9 million for the year ended december 31 , 2018 compared to income from operations of $ 17.3 million for the year ended december 31 , 2017 . income from operations as a percent of revenues rose to 5.8 % compared to 1.7 % in 2017. in december 2018 , we completed a transaction with blackstone to repurchase 100,000 shares of series a convertible preferred stock ( “ series a preferred ” ) for $ 183.7 million and to convert the remaining 100,000 shares of series a preferred into 6,896,548 shares of our common stock , which resulted in the elimination of $ 12 million in annual dividends and an overhang on our common stock . crocs also agreed to pay blackstone a $ 15 million inducement payment in connection with the transaction . net loss attributable to common stockholders was $ 69.2 million compared to a loss of $ 5.3 million in 2017 , including the accounting treatment for charges incurred related to the repurchase and conversion of our series a preferred . basic and diluted net loss per common share was $ 1.01 for the year ended december 31 , 2018 , compared to a basic and diluted net loss per common share of $ 0.07 for the year ended december 31 , 2017 . to continue improving the efficiency and profitability of our retail business we closed or transferred to distributors 68 stores in 2018 , 61.8 % of which were full-priced locations , for a net reduction of 64 company-operated retail stores . since we began our store reduction program early in 2017 , we have closed a net total of 175 stores and reduced our total company-operated store count to 383 from 558 at the end of 2016. the majority of these store closures occurred upon expiration of the leases . we have also placed greater priority on outlet stores , so that they now represent 50.9 % of our store base , up from 41.6 % at the end of 2016. we continued to focus on simplifying our product line and disciplined inventory management to allow investment in higher margin , faster-turning product . as a result , we reduced our inventory by $ 5.9 million , or 4.5 % , from $ 130.3 million to $ 124.5 million . during 2018 , we repurchased 3.6 million shares of common stock at an aggregate cost of $ 63.1 million and eliminated the overhang of 6.9 million shares ( on an as-converted basis ) associated with the repurchase of 100,000 shares of the series a preferred . 26 results of operations comparison of the years ended december 31 , 2018 , 2017 , and 2016 replace_table_token_4_th ( 1 ) changes for gross margin and operating margin are shown in basis points ( “ bp ” ) . revenues . revenues increase d $ 64.7 million , or 6.3 % , during the year ended december 31 , 2018 compared to the same period in 2017 . the increase in revenues was driven by 22.5 % growth in our e-commerce channel and 7.8 % growth in our wholesale 27 channel , which more than offset a reduction in our retail channel of 3.2 % . the decrease in retail revenues was driven by our targeted reduction in the number of company-operated retail stores , partially offset by same store sales growth in our remaining company-operated retail stores . higher unit sales volume , particularly in our clog and sandal silhouettes , increased revenues by $ 25.8 million , or 2.5 % , and an increase of $ 27.7 million , or 2.7 % , was attributable to higher average selling price ( “ asp ” ) as a result of changes in product mix , reduced promotional activities , and price increases . favorable exchange rate activity drove an increase of $ 11.2 million , or 1.1 % . revenues decreased $ 12.8 million , or 1.2 story_separator_special_tag as of december 31 , 2018 , we operated 64 fewer stores compared to december 31 , 2017 . unit sales volume decreased revenues by $ 25.3 million , or 7.5 % . favorable product mix and improved quality of revenues , the results of less promotional discounting and improved inventory composition , resulted in a higher asp impact of $ 12.8 million , or 3.8 % . an increase of $ 1.7 million , or 0.5 % , resulted from foreign currency translation . during the year ended december 31 , 2017 , revenues from our retail channel decreased $ 21.4 million , or 5.9 % , compared to the year ended december 31 , 2016. unit sales volume decreased revenues by approximately $ 12.8 million , or 3.6 % , primarily due to a net decrease of 111 company-operated retail stores as we optimized our store fleet and shifted our store mix from full-price retail to outlet . asp was lower by $ 10.3 million , or 2.9 % , as we shifted to higher margin , lower-priced molded product . these declines were partially offset by an increase of $ 1.7 million , or 0.6 % , from foreign currency translation . e-commerce channel revenues . revenues from our e-commerce channel , which includes our own e-commerce sites as well as our sales through third-party marketplaces , increased $ 33.6 million , or 22.5 % , during the year ended december 31 , 2018 compared to the year ended december 31 , 2017 as this channel continued to grow in each region . revenues increased by approximately $ 21.8 million , or 14.6 % , due to higher unit sales volume , and higher asp related to mix contributed an additional $ 9.4 million , or 6.3 % . favorable foreign currency translation resulted in an increase of $ 2.4 million , or 1.6 % during the year ended december 31 , 2017 , revenues from our e-commerce channel increased $ 18.5 million , or 14.2 % , compared to the year ended december 31 , 2016. we invested in marketing with an enhanced digital focus , and we continued to grow our e-commerce team and work toward global adoption of best practices . revenues increased by approximately $ 30.6 million , or 23.4 % , due to higher unit sales volume , partially offset by decreases of $ 11.8 million , or 9.0 % , due to lower asp and $ 0.3 million , or 0.2 % , due to the unfavorable impact of foreign currency translation . 31 reportable operating segments the following table sets forth information related to our reportable operating business segments for the years ended december 31 , 2018 , 2017 , and 2016 : replace_table_token_7_th ( 1 ) reflects year over year change as if the current period results were in “ constant currency , ” which is a non-gaap financial measure . see “ use of non-gaap financial measures ” for more information . ( 2 ) in the third quarter of 2018 , certain revenues and expenses previously reported within the ‘ asia pacific ' segment were shifted to the ‘ emea ' segment . the previously reported amounts for revenues and income from operations for the years ended december 31 , 2017 and 2016 have also been revised to conform to the current period presentation . see ‘ impact of segment composition change ' table below for more information . ( 3 ) in 2018 , certain global marketing expenses previously reported within the operating segments were managed and reported within ‘ unallocated corporate and other ' . the previously reported amounts for income from operations for the years ended december 31 , 2017 and 2016 have been revised to conform to the current year presentation . see ‘ impact of global marketing expense realignment ' table below for more information . ( 4 ) “ other businesses ” increases are primarily due to costs incurred in conjunction with the closure of company-operated manufacturing and distribution facilities , which ceased operations in 2018 , increased variable compensation associated with higher revenues , and other expenses as a result of outsourcing , and other supply chain cost changes . ( 5 ) “ unallocated corporate and other ” includes corporate support and administrative functions , costs associated with share-based compensation , research and development , brand marketing , legal , and depreciation and amortization of corporate and other assets not allocated to operating segments . 32 impact of segment composition change : replace_table_token_8_th impact of global marketing expense realignment : replace_table_token_9_th americas operating segment revenues . during the year ended december 31 , 2018 , revenues for our americas segment increased $ 40.0 million , or 8.3 % , compared to the year ended december 31 , 2017 . the growth was led by a 22.6 % increase in e-commerce revenues due to increased traffic and units per transaction . retail revenues increased by 8.7 % , despite operating 7 fewer retail stores compared to the same period last year , due to comparable sales growth of 14.0 % . higher unit sales volume resulted in an increase of approximately $ 22.0 million , or 4.6 % , while higher asp resulted in an increase of $ 22.3 million , or 4.6 % . the effect of foreign currency translation was a decrease of $ 4.3 million , or 0.9 % . during the year ended december 31 , 2017 , revenues for our americas segment increased $ 13.1 million , or 2.8 % , compared to the year ended december 31 , 2016. the increase was led by a 10.3 % increase in e-commerce revenues , while a modest increase in wholesale revenues was partially offset by a decrease in retail revenues , reflecting 15 fewer company-operated retail stores compared to last year . higher unit sales volume resulted in an increase of approximately $ 17.0 million ,

liquidity and capital resources our liquidity position as of december 31 , 2018 was : december 31 , 2018 ( in thousands ) cash and cash equivalents $ 123,367 available borrowings 129,400 as of december 31 , 2018 , we had $ 123.4 million in cash and cash equivalents and up to $ 129.4 million in available borrowings under our revolving credit facilities . we believe that our cash flows from operations , our cash and cash equivalents on hand , and available borrowings under our senior revolving credit facility and other financing instruments will be sufficient to meet the ongoing liquidity needs and capital expenditure requirements for at least the next twelve months . additional future financing may be necessary to fund our operations and there can be no assurance that , if needed , we will be able to secure additional debt or equity financing on terms acceptable to us or at all . although we believe we have adequate sources of liquidity over the long term , the success of our operations , the global economic outlook , and the pace of sustainable growth in our markets , among other factors , could impact our business and liquidity . due to the seasonal nature of our footwear , which is more heavily focused on styles suitable for warm weather , cash flows from operating activities during our fourth quarter are typically lower than those in our first three quarters , as customer receivables and inventories rise in preparation for the spring/summer season . accordingly , results of operations and cash flows for any one quarter are not necessarily indicative of expected results for any other quarter or for any other year . repatriation of cash as a global business , we have cash balances in various countries and amounts are denominated in various currencies . fluctuations in foreign currency exchange rates impact our results of operations and cash positions . future fluctuations in foreign currencies may have a material impact on our cash flows and capital 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 and capital resources our liquidity position as of december 31 , 2018 was : december 31 , 2018 ( in thousands ) cash and cash equivalents $ 123,367 available borrowings 129,400 as of december 31 , 2018 , we had $ 123.4 million in cash and cash equivalents and up to $ 129.4 million in available borrowings under our revolving credit facilities . we believe that our cash flows from operations , our cash and cash equivalents on hand , and available borrowings under our senior revolving credit facility and other financing instruments will be sufficient to meet the ongoing liquidity needs and capital expenditure requirements for at least the next twelve months . additional future financing may be necessary to fund our operations and there can be no assurance that , if needed , we will be able to secure additional debt or equity financing on terms acceptable to us or at all . although we believe we have adequate sources of liquidity over the long term , the success of our operations , the global economic outlook , and the pace of sustainable growth in our markets , among other factors , could impact our business and liquidity . due to the seasonal nature of our footwear , which is more heavily focused on styles suitable for warm weather , cash flows from operating activities during our fourth quarter are typically lower than those in our first three quarters , as customer receivables and inventories rise in preparation for the spring/summer season . accordingly , results of operations and cash flows for any one quarter are not necessarily indicative of expected results for any other quarter or for any other year . repatriation of cash as a global business , we have cash balances in various countries and amounts are denominated in various currencies . fluctuations in foreign currency exchange rates impact our results of operations and cash positions . future fluctuations in foreign currencies may have a material impact on our cash flows and capital resources . ``` Suspicious Activity Report : 25 2018 financial and operational highlights revenues were $ 1,088.2 million for the year ended december 31 , 2018 , a 6.3 % increase compared to the year ended december 31 , 2017 . the increase in 2018 revenues compared to 2017 revenues was due to the net effects of : ( i ) higher sales volumes , which increased revenues by $ 25.8 million , or 2.5 % ; ( ii ) higher average selling prices as our product and channel mix continued to change , which increased revenues by $ 27.7 million , or 2.7 % ; and ( iii ) favorable changes in exchange rates , which increased revenues by $ 11.2 million , or 1.1 % . the following were significant developments affecting our businesses and capital structure during the year ended december 31 , 2018 : in 2018 , the impact of operating with a net of 64 fewer company-operated stores and certain business model changes reduced our revenues by approximately $ 60 million . we sold 59.8 million pairs of shoes worldwide , an increase of 3.4 % from 57.9 million pairs in 2017 . gross margin improved 100 basis points compared to 2017 to 51.5 % for the year ended december 31 , 2018 . we drove this improvement by continuing to prioritize high-margin molded products , increasing prices on select products , and conducting fewer promotions in combination with better inventory management . sg & a was $ 495.0 million , an increase of $ 0.4 million , or 0.1 % , compared to 2017 . as a percent of revenues , sg & a improved 280 basis points to 45.5 % of revenues . this included $ 21.1 million of non-recurring charges associated with our previously announced sg & a reduction plan , the completion of the closure of all company-operated manufacturing and related distribution facilities , and some charges related to the relocation of our corporate headquarters , which is planned for early 2020. income from operations was $ 62.9 million for the year ended december 31 , 2018 compared to income from operations of $ 17.3 million for the year ended december 31 , 2017 . income from operations as a percent of revenues rose to 5.8 % compared to 1.7 % in 2017. in december 2018 , we completed a transaction with blackstone to repurchase 100,000 shares of series a convertible preferred stock ( “ series a preferred ” ) for $ 183.7 million and to convert the remaining 100,000 shares of series a preferred into 6,896,548 shares of our common stock , which resulted in the elimination of $ 12 million in annual dividends and an overhang on our common stock . crocs also agreed to pay blackstone a $ 15 million inducement payment in connection with the transaction . net loss attributable to common stockholders was $ 69.2 million compared to a loss of $ 5.3 million in 2017 , including the accounting treatment for charges incurred related to the repurchase and conversion of our series a preferred . basic and diluted net loss per common share was $ 1.01 for the year ended december 31 , 2018 , compared to a basic and diluted net loss per common share of $ 0.07 for the year ended december 31 , 2017 . to continue improving the efficiency and profitability of our retail business we closed or transferred to distributors 68 stores in 2018 , 61.8 % of which were full-priced locations , for a net reduction of 64 company-operated retail stores . since we began our store reduction program early in 2017 , we have closed a net total of 175 stores and reduced our total company-operated store count to 383 from 558 at the end of 2016. the majority of these store closures occurred upon expiration of the leases . we have also placed greater priority on outlet stores , so that they now represent 50.9 % of our store base , up from 41.6 % at the end of 2016. we continued to focus on simplifying our product line and disciplined inventory management to allow investment in higher margin , faster-turning product . as a result , we reduced our inventory by $ 5.9 million , or 4.5 % , from $ 130.3 million to $ 124.5 million . during 2018 , we repurchased 3.6 million shares of common stock at an aggregate cost of $ 63.1 million and eliminated the overhang of 6.9 million shares ( on an as-converted basis ) associated with the repurchase of 100,000 shares of the series a preferred . 26 results of operations comparison of the years ended december 31 , 2018 , 2017 , and 2016 replace_table_token_4_th ( 1 ) changes for gross margin and operating margin are shown in basis points ( “ bp ” ) . revenues . revenues increase d $ 64.7 million , or 6.3 % , during the year ended december 31 , 2018 compared to the same period in 2017 . the increase in revenues was driven by 22.5 % growth in our e-commerce channel and 7.8 % growth in our wholesale 27 channel , which more than offset a reduction in our retail channel of 3.2 % . the decrease in retail revenues was driven by our targeted reduction in the number of company-operated retail stores , partially offset by same store sales growth in our remaining company-operated retail stores . higher unit sales volume , particularly in our clog and sandal silhouettes , increased revenues by $ 25.8 million , or 2.5 % , and an increase of $ 27.7 million , or 2.7 % , was attributable to higher average selling price ( “ asp ” ) as a result of changes in product mix , reduced promotional activities , and price increases . favorable exchange rate activity drove an increase of $ 11.2 million , or 1.1 % . revenues decreased $ 12.8 million , or 1.2 story_separator_special_tag as of december 31 , 2018 , we operated 64 fewer stores compared to december 31 , 2017 . unit sales volume decreased revenues by $ 25.3 million , or 7.5 % . favorable product mix and improved quality of revenues , the results of less promotional discounting and improved inventory composition , resulted in a higher asp impact of $ 12.8 million , or 3.8 % . an increase of $ 1.7 million , or 0.5 % , resulted from foreign currency translation . during the year ended december 31 , 2017 , revenues from our retail channel decreased $ 21.4 million , or 5.9 % , compared to the year ended december 31 , 2016. unit sales volume decreased revenues by approximately $ 12.8 million , or 3.6 % , primarily due to a net decrease of 111 company-operated retail stores as we optimized our store fleet and shifted our store mix from full-price retail to outlet . asp was lower by $ 10.3 million , or 2.9 % , as we shifted to higher margin , lower-priced molded product . these declines were partially offset by an increase of $ 1.7 million , or 0.6 % , from foreign currency translation . e-commerce channel revenues . revenues from our e-commerce channel , which includes our own e-commerce sites as well as our sales through third-party marketplaces , increased $ 33.6 million , or 22.5 % , during the year ended december 31 , 2018 compared to the year ended december 31 , 2017 as this channel continued to grow in each region . revenues increased by approximately $ 21.8 million , or 14.6 % , due to higher unit sales volume , and higher asp related to mix contributed an additional $ 9.4 million , or 6.3 % . favorable foreign currency translation resulted in an increase of $ 2.4 million , or 1.6 % during the year ended december 31 , 2017 , revenues from our e-commerce channel increased $ 18.5 million , or 14.2 % , compared to the year ended december 31 , 2016. we invested in marketing with an enhanced digital focus , and we continued to grow our e-commerce team and work toward global adoption of best practices . revenues increased by approximately $ 30.6 million , or 23.4 % , due to higher unit sales volume , partially offset by decreases of $ 11.8 million , or 9.0 % , due to lower asp and $ 0.3 million , or 0.2 % , due to the unfavorable impact of foreign currency translation . 31 reportable operating segments the following table sets forth information related to our reportable operating business segments for the years ended december 31 , 2018 , 2017 , and 2016 : replace_table_token_7_th ( 1 ) reflects year over year change as if the current period results were in “ constant currency , ” which is a non-gaap financial measure . see “ use of non-gaap financial measures ” for more information . ( 2 ) in the third quarter of 2018 , certain revenues and expenses previously reported within the ‘ asia pacific ' segment were shifted to the ‘ emea ' segment . the previously reported amounts for revenues and income from operations for the years ended december 31 , 2017 and 2016 have also been revised to conform to the current period presentation . see ‘ impact of segment composition change ' table below for more information . ( 3 ) in 2018 , certain global marketing expenses previously reported within the operating segments were managed and reported within ‘ unallocated corporate and other ' . the previously reported amounts for income from operations for the years ended december 31 , 2017 and 2016 have been revised to conform to the current year presentation . see ‘ impact of global marketing expense realignment ' table below for more information . ( 4 ) “ other businesses ” increases are primarily due to costs incurred in conjunction with the closure of company-operated manufacturing and distribution facilities , which ceased operations in 2018 , increased variable compensation associated with higher revenues , and other expenses as a result of outsourcing , and other supply chain cost changes . ( 5 ) “ unallocated corporate and other ” includes corporate support and administrative functions , costs associated with share-based compensation , research and development , brand marketing , legal , and depreciation and amortization of corporate and other assets not allocated to operating segments . 32 impact of segment composition change : replace_table_token_8_th impact of global marketing expense realignment : replace_table_token_9_th americas operating segment revenues . during the year ended december 31 , 2018 , revenues for our americas segment increased $ 40.0 million , or 8.3 % , compared to the year ended december 31 , 2017 . the growth was led by a 22.6 % increase in e-commerce revenues due to increased traffic and units per transaction . retail revenues increased by 8.7 % , despite operating 7 fewer retail stores compared to the same period last year , due to comparable sales growth of 14.0 % . higher unit sales volume resulted in an increase of approximately $ 22.0 million , or 4.6 % , while higher asp resulted in an increase of $ 22.3 million , or 4.6 % . the effect of foreign currency translation was a decrease of $ 4.3 million , or 0.9 % . during the year ended december 31 , 2017 , revenues for our americas segment increased $ 13.1 million , or 2.8 % , compared to the year ended december 31 , 2016. the increase was led by a 10.3 % increase in e-commerce revenues , while a modest increase in wholesale revenues was partially offset by a decrease in retail revenues , reflecting 15 fewer company-operated retail stores compared to last year . higher unit sales volume resulted in an increase of approximately $ 17.0 million ,

we expect our expenses will increase substantially in connection with our ongoing activities as we continue to develop and seek regulatory approval of our product candidates and operate as a public company . to fund further operations , we will need to raise additional capital . accordingly , we will seek to fund our operations through equity and or debt financings . we may also consider new collaborations or selectively partnering our technology or programs . however , we may be unable to raise additional funds or enter into such other arrangements when needed on favorable terms or at all . in addition , subject to limited exceptions , our loan agreement ( as defined below ) also prohibits us from incurring indebtedness without the prior written consent of the lenders . our failure to raise capital or enter into such other arrangements as and when needed would have a negative impact on our financial condition and our ability to develop our product candidates . on april 19 , 2017 , we completed our initial public offering whereby we sold an aggregate of 9,775,000 shares of common stock , at $ 10.00 per share , resulting in net proceeds of $ 86.9 million after underwriting discounts , commissions and offering costs . 69 in august 2017 , we were awarded a $ 2.0 million grant payable over four years , by the fda office of orphan products development to support our phase 3 clinical trial of toca 511 & toca fc , or oopd grant . at december 31 , 2017 , we had received $ 0.5 million relating to the oopd grant . financial operations overview revenue we currently have no products approved for sale , and have not generated any revenues from the sale of products . we have not submitted any product candidate for regulatory approval . our revenue has been derived from our license and collaboration arrangement we entered into with siemens in 2011 , under which we received a nonrefundable , non-creditable , lump-sum , upfront license payment of $ 0.5 million for our sublicense to siemens of certain diagnostic assay technology . in the future , we may generate revenue from a combination of product sales and royalties in connection with our siemens agreement and any future marketing and distribution arrangements and other collaborations , strategic alliances and license arrangements , or a combination of these approaches . however , we do not expect to receive additional revenues unless and until we receive regulatory approval for product candidates or potentially enter into collaboration agreements . we do not expect any of our current product candidates to be commercially available in major markets for at least the next few years . we expect that any revenue we generate will fluctuate from quarter to quarter and year to year as a result of the timing and amount of license fees , milestone and other payments , and the amount and timing of payments that we receive upon the sale of our products , to the extent any are successfully commercialized . if we fail to complete the development of our product candidates in a timely manner or obtain regulatory approval of them , our ability to generate future revenue , and our results of operations and financial position , would be materially adversely affected . research and development expenses research and development expenses consist primarily of salaries and related expenses for personnel , including stock-based compensation costs , preclinical costs , clinical trial costs , costs related to acquiring and manufacturing clinical trial materials , contract services , facilities costs , overhead costs and depreciation . these activities also include research and development related to our gene therapy platform development . all research and development costs are expensed as incurred . we can not determine with certainty the duration and completion costs of the current or future clinical trials of our product candidates , or if , when or to what extent we will generate revenues from the commercialization and sale of any of our product candidates that obtain regulatory approval . we may never succeed in achieving regulatory approval for any of our product candidates . the duration , costs and timing of clinical trials and development of our product candidates will depend on a variety of factors , including : per patient trial costs ; the number of patients that participate in the trials ; the number of sites included in the trials ; the countries in which the trials are conducted ; the length of time required to enroll eligible patients ; the drop-out or discontinuation rates of patients ; the potential for additional safety monitoring or other clinical trials requested by regulatory agencies ; significant and changing government regulation ; and the timing and receipt of any regulatory approvals . a change in the outcome of any of these variables with respect to the development of a product candidate could mean a significant change in the costs and timing associated with the development of that product candidate . for example , if the u.s. food and drug administration , or fda , or another regulatory authority were to require us to conduct clinical trials beyond those that we currently anticipate will be required for the completion of clinical development of a product candidate or if we experience significant delays in enrollment in any of our clinical trials , we could be required to expend significant additional financial resources and time on the completion of clinical development . in addition , the probability of success for each product candidate will depend on numerous factors , including competition , manufacturing capability and commercial viability . we will determine which programs to pursue and how much to fund each program in response to the scientific and clinical success of each product candidate , as well as an assessment of each product candidate 's commercial potential . story_separator_special_tag the interest rate as of december 31 , 2017 was 8.75 % . the loans under the loan agreement mature in may 2019 and are due in monthly payments of principal and interest . the loan agreement contains customary conditions of borrowing , events of default and covenants , including covenants that restrict our ability to dispose of assets , merge with or acquire other entities , incur indebtedness and make distributions to holders of our capital stock . should an event of default occur , including the occurrence of a material adverse change , we could be liable for immediate repayment of all obligations under the loan agreement . 74 as of december 31 , 2017 , we had $ 88.7 million in cash , cash equivalents and marketable securities . our available cash and marketable securities are invested in acc ordance with our investment policy , primarily with a view to preserve principal and maintain liquidity . currently , our funds are held in fdic insured cash accounts , certificates of deposits , money market funds and investment-grade fixed income securities . story_separator_special_tag as such , at this time , we can not reasonably estimate or know the nature , timing and costs of the efforts that will be necessary to complete the development of toca 511 & toca fc or our other current and future product candidates . we are also unable to predict when , if ever , material net cash inflows will commence from the sale of product candidates . this is due to the numerous risks and uncertainties associated with developing immunotherapies , including the uncertainty of : the progress , timing , costs and results of our ongoing phase 3 clinical trial of toca 511 & toca fc ; the progress , timing , costs and results of our phase 1 dose escalation clinical trials that include our intratumoral study , resection study , and intravenous study ; the progress , timing , costs and results of development for toca 511 & toca fc for the treatment of metastatic solid tumors ; the progress , timing , costs and results of development for our other future product candidates ; the outcome , timing and cost of regulatory approvals by the fda and comparable foreign regulatory authorities , including the potential for the fda or comparable foreign regulatory authorities to require that we perform more studies than those that we currently expect ; the ability of our product candidates to progress through clinical development successfully ; the cost of filing , prosecuting , defending and enforcing any patent claims and other intellectual property rights ; arrangements with third-party service providers and manufacturers ; our need and ability to hire additional personnel ; our need to implement additional infrastructure and internal systems ; the effect of competing technological and market developments ; and the cost of establishing sales , marketing and distribution capabilities for any products for which we may receive regulatory approval . a change in the outcome of any of these variables with respect to the development of any of our product candidates would significantly change the costs and timing associated with the development of that product candidate . until we can generate a sufficient amount of revenue from our products , if ever , we expect to finance future cash needs through equity and or debt financings . we may also consider new collaborations or selectively partnering our technology or programs . we do not have any committed external source of funds . additional capital may not be available on reasonable terms , if at all . subject to limited exceptions , our loan agreement also prohibits us from incurring indebtedness without the prior written consent of the lenders . if we are unable to raise additional capital in sufficient amounts or on terms acceptable to us , we may have to significantly delay , scale back or discontinue the development or commercialization of one or more of our product candidates . if we raise additional funds through the issuance of additional equity or debt securities , it could result in dilution to our existing stockholders and increased fixed payment obligations , and these securities may have rights senior to those of our common stock . if we incur indebtedness , we could become subject to covenants that would restrict our operations and potentially impair our competitiveness , such as limitations on our ability to incur additional debt , limitations on our ability to acquire , sell or license intellectual property rights and other operating restrictions that could adversely impact our ability to conduct our business . any of these events could significantly harm our business , financial condition and prospects . 76 off-balance sheet arrangements we did not have during the periods presented , and we do not currently have , any off-balance sheet arrangements , as defined in the rules and regulations of the sec . contractual obligations and commitments the following table summarizes our contractual obligations and commitments as of december 31 , 2017 that will affect our future liquidity ( in thousands ) : replace_table_token_13_th on january 10 , 2018 , we entered into a new lease , or the new lease , totaling approximately 39,000 square feet of laboratory and office space located at 4242 campus point court , san diego , california , or the new premises . the commencement date of the new lease will be the earlier of ( a ) june 1 , 2018 , ( b ) substantial completion of tenant improvements , or ( c ) the date we begin conducting business operations in all or any portion of the new premises . we expect to use the new premises as our new principal executive offices and for general office , research and development , lab and pilot manufacturing uses . the term of the new lease is eight years and we have one option to extend the new lease for

cash flows the following table sets forth the primary sources and uses of cash for each of the periods set forth below ( in thousands ) : replace_table_token_12_th operating activities . net cash used in operating activities was $ 31.1 million for the year ended december 31 , 2017 , and consisted primarily of a net loss of $ 38.9 million adjusted for a net increase in cash from operating assets and liabilities of $ 2.5 million , noncash stock-based compensation expense of $ 4.5 million , depreciation expense of $ 0.3 million and noncash interest expense of $ 0.6 million . the $ 2.5 million net increase in cash from operating assets and liabilities is due primarily to a $ 3.2 million increase in our accounts payable and accrued liabilities resulting mainly from increased accrued payroll and related liabilities and continued increases in clinical costs incurred to support our clinical trials , primarily offset by a $ 0.7 million increase in prepaid expenses related to our manufacturing costs . net cash used in operating activities was $ 29.5 million for the year ended december 31 , 2016 , and consisted primarily of a net loss of $ 33.5 million adjusted for a net increase in cash from operating assets and liabilities of $ 1.8 million , noncash stock-based compensation expense of $ 1.3 million , depreciation expense of $ 0.3 million and noncash interest expense of $ 0.6 million . the $ 1.8 million net increase in cash from operating assets and liabilities is due primarily to a $ 2.1 million increase in our accounts payable and accrued liabilities resulting mainly from continued increases in clinical and manufacturing costs incurred to support our clinical trials and increased accrued payroll and related liabilities , primarily offset by a $ 0.2 million increase in prepaid expenses related to our clinical trial costs .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash flows the following table sets forth the primary sources and uses of cash for each of the periods set forth below ( in thousands ) : replace_table_token_12_th operating activities . net cash used in operating activities was $ 31.1 million for the year ended december 31 , 2017 , and consisted primarily of a net loss of $ 38.9 million adjusted for a net increase in cash from operating assets and liabilities of $ 2.5 million , noncash stock-based compensation expense of $ 4.5 million , depreciation expense of $ 0.3 million and noncash interest expense of $ 0.6 million . the $ 2.5 million net increase in cash from operating assets and liabilities is due primarily to a $ 3.2 million increase in our accounts payable and accrued liabilities resulting mainly from increased accrued payroll and related liabilities and continued increases in clinical costs incurred to support our clinical trials , primarily offset by a $ 0.7 million increase in prepaid expenses related to our manufacturing costs . net cash used in operating activities was $ 29.5 million for the year ended december 31 , 2016 , and consisted primarily of a net loss of $ 33.5 million adjusted for a net increase in cash from operating assets and liabilities of $ 1.8 million , noncash stock-based compensation expense of $ 1.3 million , depreciation expense of $ 0.3 million and noncash interest expense of $ 0.6 million . the $ 1.8 million net increase in cash from operating assets and liabilities is due primarily to a $ 2.1 million increase in our accounts payable and accrued liabilities resulting mainly from continued increases in clinical and manufacturing costs incurred to support our clinical trials and increased accrued payroll and related liabilities , primarily offset by a $ 0.2 million increase in prepaid expenses related to our clinical trial costs . ``` Suspicious Activity Report : we expect our expenses will increase substantially in connection with our ongoing activities as we continue to develop and seek regulatory approval of our product candidates and operate as a public company . to fund further operations , we will need to raise additional capital . accordingly , we will seek to fund our operations through equity and or debt financings . we may also consider new collaborations or selectively partnering our technology or programs . however , we may be unable to raise additional funds or enter into such other arrangements when needed on favorable terms or at all . in addition , subject to limited exceptions , our loan agreement ( as defined below ) also prohibits us from incurring indebtedness without the prior written consent of the lenders . our failure to raise capital or enter into such other arrangements as and when needed would have a negative impact on our financial condition and our ability to develop our product candidates . on april 19 , 2017 , we completed our initial public offering whereby we sold an aggregate of 9,775,000 shares of common stock , at $ 10.00 per share , resulting in net proceeds of $ 86.9 million after underwriting discounts , commissions and offering costs . 69 in august 2017 , we were awarded a $ 2.0 million grant payable over four years , by the fda office of orphan products development to support our phase 3 clinical trial of toca 511 & toca fc , or oopd grant . at december 31 , 2017 , we had received $ 0.5 million relating to the oopd grant . financial operations overview revenue we currently have no products approved for sale , and have not generated any revenues from the sale of products . we have not submitted any product candidate for regulatory approval . our revenue has been derived from our license and collaboration arrangement we entered into with siemens in 2011 , under which we received a nonrefundable , non-creditable , lump-sum , upfront license payment of $ 0.5 million for our sublicense to siemens of certain diagnostic assay technology . in the future , we may generate revenue from a combination of product sales and royalties in connection with our siemens agreement and any future marketing and distribution arrangements and other collaborations , strategic alliances and license arrangements , or a combination of these approaches . however , we do not expect to receive additional revenues unless and until we receive regulatory approval for product candidates or potentially enter into collaboration agreements . we do not expect any of our current product candidates to be commercially available in major markets for at least the next few years . we expect that any revenue we generate will fluctuate from quarter to quarter and year to year as a result of the timing and amount of license fees , milestone and other payments , and the amount and timing of payments that we receive upon the sale of our products , to the extent any are successfully commercialized . if we fail to complete the development of our product candidates in a timely manner or obtain regulatory approval of them , our ability to generate future revenue , and our results of operations and financial position , would be materially adversely affected . research and development expenses research and development expenses consist primarily of salaries and related expenses for personnel , including stock-based compensation costs , preclinical costs , clinical trial costs , costs related to acquiring and manufacturing clinical trial materials , contract services , facilities costs , overhead costs and depreciation . these activities also include research and development related to our gene therapy platform development . all research and development costs are expensed as incurred . we can not determine with certainty the duration and completion costs of the current or future clinical trials of our product candidates , or if , when or to what extent we will generate revenues from the commercialization and sale of any of our product candidates that obtain regulatory approval . we may never succeed in achieving regulatory approval for any of our product candidates . the duration , costs and timing of clinical trials and development of our product candidates will depend on a variety of factors , including : per patient trial costs ; the number of patients that participate in the trials ; the number of sites included in the trials ; the countries in which the trials are conducted ; the length of time required to enroll eligible patients ; the drop-out or discontinuation rates of patients ; the potential for additional safety monitoring or other clinical trials requested by regulatory agencies ; significant and changing government regulation ; and the timing and receipt of any regulatory approvals . a change in the outcome of any of these variables with respect to the development of a product candidate could mean a significant change in the costs and timing associated with the development of that product candidate . for example , if the u.s. food and drug administration , or fda , or another regulatory authority were to require us to conduct clinical trials beyond those that we currently anticipate will be required for the completion of clinical development of a product candidate or if we experience significant delays in enrollment in any of our clinical trials , we could be required to expend significant additional financial resources and time on the completion of clinical development . in addition , the probability of success for each product candidate will depend on numerous factors , including competition , manufacturing capability and commercial viability . we will determine which programs to pursue and how much to fund each program in response to the scientific and clinical success of each product candidate , as well as an assessment of each product candidate 's commercial potential . story_separator_special_tag the interest rate as of december 31 , 2017 was 8.75 % . the loans under the loan agreement mature in may 2019 and are due in monthly payments of principal and interest . the loan agreement contains customary conditions of borrowing , events of default and covenants , including covenants that restrict our ability to dispose of assets , merge with or acquire other entities , incur indebtedness and make distributions to holders of our capital stock . should an event of default occur , including the occurrence of a material adverse change , we could be liable for immediate repayment of all obligations under the loan agreement . 74 as of december 31 , 2017 , we had $ 88.7 million in cash , cash equivalents and marketable securities . our available cash and marketable securities are invested in acc ordance with our investment policy , primarily with a view to preserve principal and maintain liquidity . currently , our funds are held in fdic insured cash accounts , certificates of deposits , money market funds and investment-grade fixed income securities . story_separator_special_tag as such , at this time , we can not reasonably estimate or know the nature , timing and costs of the efforts that will be necessary to complete the development of toca 511 & toca fc or our other current and future product candidates . we are also unable to predict when , if ever , material net cash inflows will commence from the sale of product candidates . this is due to the numerous risks and uncertainties associated with developing immunotherapies , including the uncertainty of : the progress , timing , costs and results of our ongoing phase 3 clinical trial of toca 511 & toca fc ; the progress , timing , costs and results of our phase 1 dose escalation clinical trials that include our intratumoral study , resection study , and intravenous study ; the progress , timing , costs and results of development for toca 511 & toca fc for the treatment of metastatic solid tumors ; the progress , timing , costs and results of development for our other future product candidates ; the outcome , timing and cost of regulatory approvals by the fda and comparable foreign regulatory authorities , including the potential for the fda or comparable foreign regulatory authorities to require that we perform more studies than those that we currently expect ; the ability of our product candidates to progress through clinical development successfully ; the cost of filing , prosecuting , defending and enforcing any patent claims and other intellectual property rights ; arrangements with third-party service providers and manufacturers ; our need and ability to hire additional personnel ; our need to implement additional infrastructure and internal systems ; the effect of competing technological and market developments ; and the cost of establishing sales , marketing and distribution capabilities for any products for which we may receive regulatory approval . a change in the outcome of any of these variables with respect to the development of any of our product candidates would significantly change the costs and timing associated with the development of that product candidate . until we can generate a sufficient amount of revenue from our products , if ever , we expect to finance future cash needs through equity and or debt financings . we may also consider new collaborations or selectively partnering our technology or programs . we do not have any committed external source of funds . additional capital may not be available on reasonable terms , if at all . subject to limited exceptions , our loan agreement also prohibits us from incurring indebtedness without the prior written consent of the lenders . if we are unable to raise additional capital in sufficient amounts or on terms acceptable to us , we may have to significantly delay , scale back or discontinue the development or commercialization of one or more of our product candidates . if we raise additional funds through the issuance of additional equity or debt securities , it could result in dilution to our existing stockholders and increased fixed payment obligations , and these securities may have rights senior to those of our common stock . if we incur indebtedness , we could become subject to covenants that would restrict our operations and potentially impair our competitiveness , such as limitations on our ability to incur additional debt , limitations on our ability to acquire , sell or license intellectual property rights and other operating restrictions that could adversely impact our ability to conduct our business . any of these events could significantly harm our business , financial condition and prospects . 76 off-balance sheet arrangements we did not have during the periods presented , and we do not currently have , any off-balance sheet arrangements , as defined in the rules and regulations of the sec . contractual obligations and commitments the following table summarizes our contractual obligations and commitments as of december 31 , 2017 that will affect our future liquidity ( in thousands ) : replace_table_token_13_th on january 10 , 2018 , we entered into a new lease , or the new lease , totaling approximately 39,000 square feet of laboratory and office space located at 4242 campus point court , san diego , california , or the new premises . the commencement date of the new lease will be the earlier of ( a ) june 1 , 2018 , ( b ) substantial completion of tenant improvements , or ( c ) the date we begin conducting business operations in all or any portion of the new premises . we expect to use the new premises as our new principal executive offices and for general office , research and development , lab and pilot manufacturing uses . the term of the new lease is eight years and we have one option to extend the new lease for

( 2 ) reported production relates to the amount of metal sales , subject to our royalty interests , for the period january 1 , 2012 through june 30 , 2012 , as reported to us by the operators of the mines . ( 3 ) in march 2012 , pan american acquired minefinders . the production estimate shown was provided by minefinders . pan american announced production guidance of 49,000 to 53,000 ounces of gold and 2.75 to 3.0 million ounces of silver for the period april 1 through december 31 , 2012 . ( 4 ) the company did not receive calendar 2012 production guidance from the operator . 39 historical production the following table discloses historical production for the past three fiscal years for the principal producing properties that are subject to our royalty interests , as reported to us by the operators of the mines : historical production ( 1 ) by royalty principal producing properties for the fiscal years ended june 30 , 2012 , 2011 and 2010 replace_table_token_18_th ( 1 ) historical production relates to the amount of metal sales , subject to our royalty interests for each fiscal year presented , as reported to us by the operators of the mines . critical accounting policies listed below are the accounting policies that the company believes are critical to its financial statements due to the degree of uncertainty regarding the estimates or assumptions involved and the magnitude of the asset , liability , revenue or expense being reported . please refer to note 2 of the notes to consolidated financial statements for a discussion on recently adopted and issued accounting pronouncements . use of estimates the preparation of our financial statements , in conformity with accounting principles generally accepted in the united states of america , requires management to make estimates and assumptions . these estimates and assumptions affect the reported amounts of assets and liabilities , at the date of the financial statements , as well as the reported amounts of revenues and expenses during the reporting period . 40 our most critical accounting estimates relate to our assumptions regarding future gold , silver , nickel , copper and other metal prices and the estimates of reserves and recoveries of third-party mine operators . we rely on reserve estimates reported by the operators on the properties in which we have royalty interests . these estimates and the underlying assumptions affect the potential impairments of long-lived assets and the ability to realize income tax benefits associated with deferred tax assets . these estimates and assumptions also affect the rate at which we charge depreciation , depletion and amortization to earnings . on an ongoing basis , management evaluates these estimates and assumptions ; however , actual amounts could differ from these estimates and assumptions . royalty interests in mineral properties royalty interests in mineral properties include acquired royalty interests in production , development and exploration stage properties . the costs of acquired royalty interests in mineral properties are capitalized as tangible assets as such interests do not meet the definition of a financial asset under the accounting standards codification ( `` asc `` ) guidance . acquisition costs of production stage royalty interests are depleted using the units of production method over the life of the mineral property , which is estimated using proven and probable reserves as provided by the operator . acquisition costs of royalty interests on development stage mineral properties , which are not yet in production , are not amortized until the property begins production . acquisition costs of royalty interests on exploration stage mineral properties , where there are no proven and probable reserves , are not amortized . at such time as the associated exploration stage mineral interests are converted to proven and probable reserves , the cost basis is amortized over the remaining life of the mineral property , using proven and probable reserves . the carrying values of exploration stage mineral interests are evaluated for impairment at such time as information becomes available indicating that the production will not occur in the future . exploration costs are expensed when incurred . asset impairment we evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the related carrying amounts of an asset or group of assets may not be recoverable . the recoverability of the carrying value of royalty interests in production and development stage mineral properties is evaluated based upon estimated future undiscounted net cash flows from each royalty interest property using estimates of proven and probable reserves and other relevant information received from the operators . we evaluate the recoverability of the carrying value of royalty interests in exploration stage mineral properties in the event of significant decreases in the price of gold , silver , copper , nickel and other metals , and whenever new information regarding the mineral properties is obtained from the operator indicating that production will not likely occur in the future thus affecting the future recoverability of our royalty interests . impairments in the carrying value of each property are measured and recorded to the extent that the carrying value in each property exceeds its estimated fair value , which is generally calculated using estimated future discounted cash flows . our estimates of gold , silver , copper , nickel and other metal prices , operator 's estimates of proven and probable reserves related to our royalty properties , and operator 's estimates of operating , capital and reclamation costs are subject to certain risks and uncertainties which may affect the recoverability of our investment in these royalty interests in mineral properties . although we have made our best assessment of these factors based on current conditions , it is possible that changes could occur , which could adversely affect the net cash flows expected to be generated from these royalty interests . story_separator_special_tag 47 results of operations fiscal year ended june 30 , 2012 , compared with fiscal year ended june 30 , 2011 for the fiscal year ended june 30 , 2012 , we recorded net income available to royal gold common stockholders of $ 92.5 million , or $ 1.61 per basic share and diluted share , compared to net income available to royal gold common stockholders of $ 71.4 million , or $ 1.29 per basic and diluted share , for the fiscal year ended june 30 , 2011. the increase in our earnings per share was primarily attributable to an increase in royalty revenue , as discussed further below . this increase was partially offset by an increase in production taxes , depletion expense , income tax expense and the royalty restructuring charge during the period , each of which are discussed further below . for fiscal year ended june 30 , 2012 , we recognized total royalty revenue of $ 263.1 million , at an average gold price of $ 1,673 per ounce , an average silver price of $ 33.26 per ounce , an average nickel price of $ 8.77 per pound and an average copper price of $ 3.71 per pound , compared to total royalty revenue of $ 216.5 million , at an average gold price of $ 1,369 per ounce , an average silver price of $ 28.61 per ounce , an average nickel price of $ 10.86 per pound and an average copper price of $ 3.92 per pound , for fiscal year ended june 30 , 2011. royalty revenue and the corresponding production , 48 attributable to our royalty interests , for the fiscal year ended june 30 , 2012 compared to the fiscal year ended june 30 , 2011 is as follows : royalty revenue and production subject to our royalty interests fiscal years ended june 30 , 2012 and 2011 ( in thousands , except reported production in ozs . and lbs . ) replace_table_token_20_th ( 1 ) reported production relates to the amount of metal sales , subject to our royalty interests , for the twelve months ended june 30 , 2012 and june 30 , 2011 , as reported to us by the operators of the mines . ( 2 ) `` other `` includes all of the company 's non-principal producing royalties as of june 30 , 2012. individually , no royalty included within the `` other `` category contributed greater than 5 % of our total royalty revenue for either period . 49 the increase in royalty revenue for the fiscal year ended june 30 , 2012 , compared with the fiscal year ended june 30 , 2011 , resulted primarily from an increase in the average gold and silver prices , increased production at andacollo , voisey 's bay , mulatos and dolores , the continued ramp-up at peñasquito , holt , las cruces , canadian malartic and wolverine . these increases were partially offset during the period due to decreases in production at cortez , leeville and robinson . refer to part i , item 2 , properties , for discussion and any updates on our principal producing properties . depreciation , depletion and amortization expense increased to $ 75.0 million for the fiscal year ended june 30 , 2012 , from $ 67.4 million for the fiscal year ended june 30 , 2011. the increase was primarily attributable to an increase in production at andacollo , voisey 's bay and las cruces , which resulted in additional depletion expense of approximately $ 8.3 million during the period . the increase was also attributable to the continued ramp-up at holt and canadian malartic , which resulted in additional depletion expense of approximately $ 4.3 million during the period . these increases were partially offset by a decrease in depletion at taparko of approximately $ 4.3 million , which was due to the dollar cap being met during the prior period . during the fiscal year ended june 30 , 2012 , we recognized income tax expense totaling $ 54.7 million compared with $ 39.0 million during the fiscal year ended june 30 , 2011. this resulted in an effective tax rate of 35.8 % during the current period , compared with 33.5 % in the prior period . the increase in the effective tax rate for the twelve months ended june 30 , 2012 is primarily related to an increase in tax expense and valuation allowances related to earnings from non-u.s. subsidiaries offset by a decrease in tax expense associated with the decrease in foreign currency exchange gains and the effect of excess depletion . fiscal year ended june 30 , 2011 , compared with fiscal year ended june 30 , 2010 for the fiscal year ended june 30 , 2011 , we recorded net income available to royal gold common stockholders of $ 71.4 million , or $ 1.29 per basic and diluted share , compared to net income available to royal gold common stockholders of $ 21.5 million , or $ 0.49 per basic and diluted share , for the fiscal year ended june 30 , 2010. the increase in our earnings per share during the fiscal year ended june 30 , 2011 was primarily attributable to an increase in royalty revenue , as discussed further below . the increase is also attributable to a decrease in one-time international royalty corporation ( `` irc `` ) severance and acquisition related costs of approximately $ 19.4 million , which were incurred during the period ended june 30 , 2010. these increases were partially offset by an increase in our total costs and expenses , which are each further discussed below . for fiscal year ended june 30 , 2011 , we recognized total royalty revenue of $ 216.5 million , at an average gold price of $ 1,369 per ounce , an average silver price of $ 28.61 per ounce , an average

liquidity and capital resources overview at june 30 , 2012 , we had current assets of $ 445.2 million compared to current liabilities of $ 15.2 million for a current ratio of 29 to 1. this compares to current assets of $ 169.3 million and current liabilities of $ 28.9 million at june 30 , 2011 , resulting in a current ratio of approximately 6 to 1. the increase in our current ratio was primarily attributable to an increase in cash and equivalents due to proceeds received from our recent convertible debt offering and equity offering , both of which are discussed below . the increase is also attributable to a decrease in our current portion of debt due to the payoff and termination of our term loan , which is also discussed below . during the fiscal year ended june 30 , 2012 , liquidity needs were met from $ 263.1 million in royalty revenues , our available cash resources , including net proceeds of approximately $ 359.0 million from our recent convertible senior notes offering and proceeds of $ 268.4 million from our recent common stock offering , each of which are discussed below . approximately $ 110.6 million of the net proceeds from the convertible senior notes offering were used to repay the amounts outstanding under our term loan . the term loan has been terminated as of june 30 , 2012. also discussed below , in may 2012 , the company expanded , among other things , its revolving credit facility from $ 225 million to $ 350 million . as of june 30 , 2012 , the company had $ 350 million available and no amounts outstanding under its revolving credit facility . refer to note 8 of our notes to consolidated financial statements and below for further discussion on our debt . we believe that our current financial resources and funds generated from operations will be adequate to cover anticipated expenditures for debt service , general and administrative expense costs , exploration costs and capital expenditures for the foreseeable 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 overview at june 30 , 2012 , we had current assets of $ 445.2 million compared to current liabilities of $ 15.2 million for a current ratio of 29 to 1. this compares to current assets of $ 169.3 million and current liabilities of $ 28.9 million at june 30 , 2011 , resulting in a current ratio of approximately 6 to 1. the increase in our current ratio was primarily attributable to an increase in cash and equivalents due to proceeds received from our recent convertible debt offering and equity offering , both of which are discussed below . the increase is also attributable to a decrease in our current portion of debt due to the payoff and termination of our term loan , which is also discussed below . during the fiscal year ended june 30 , 2012 , liquidity needs were met from $ 263.1 million in royalty revenues , our available cash resources , including net proceeds of approximately $ 359.0 million from our recent convertible senior notes offering and proceeds of $ 268.4 million from our recent common stock offering , each of which are discussed below . approximately $ 110.6 million of the net proceeds from the convertible senior notes offering were used to repay the amounts outstanding under our term loan . the term loan has been terminated as of june 30 , 2012. also discussed below , in may 2012 , the company expanded , among other things , its revolving credit facility from $ 225 million to $ 350 million . as of june 30 , 2012 , the company had $ 350 million available and no amounts outstanding under its revolving credit facility . refer to note 8 of our notes to consolidated financial statements and below for further discussion on our debt . we believe that our current financial resources and funds generated from operations will be adequate to cover anticipated expenditures for debt service , general and administrative expense costs , exploration costs and capital expenditures for the foreseeable future . ``` Suspicious Activity Report : ( 2 ) reported production relates to the amount of metal sales , subject to our royalty interests , for the period january 1 , 2012 through june 30 , 2012 , as reported to us by the operators of the mines . ( 3 ) in march 2012 , pan american acquired minefinders . the production estimate shown was provided by minefinders . pan american announced production guidance of 49,000 to 53,000 ounces of gold and 2.75 to 3.0 million ounces of silver for the period april 1 through december 31 , 2012 . ( 4 ) the company did not receive calendar 2012 production guidance from the operator . 39 historical production the following table discloses historical production for the past three fiscal years for the principal producing properties that are subject to our royalty interests , as reported to us by the operators of the mines : historical production ( 1 ) by royalty principal producing properties for the fiscal years ended june 30 , 2012 , 2011 and 2010 replace_table_token_18_th ( 1 ) historical production relates to the amount of metal sales , subject to our royalty interests for each fiscal year presented , as reported to us by the operators of the mines . critical accounting policies listed below are the accounting policies that the company believes are critical to its financial statements due to the degree of uncertainty regarding the estimates or assumptions involved and the magnitude of the asset , liability , revenue or expense being reported . please refer to note 2 of the notes to consolidated financial statements for a discussion on recently adopted and issued accounting pronouncements . use of estimates the preparation of our financial statements , in conformity with accounting principles generally accepted in the united states of america , requires management to make estimates and assumptions . these estimates and assumptions affect the reported amounts of assets and liabilities , at the date of the financial statements , as well as the reported amounts of revenues and expenses during the reporting period . 40 our most critical accounting estimates relate to our assumptions regarding future gold , silver , nickel , copper and other metal prices and the estimates of reserves and recoveries of third-party mine operators . we rely on reserve estimates reported by the operators on the properties in which we have royalty interests . these estimates and the underlying assumptions affect the potential impairments of long-lived assets and the ability to realize income tax benefits associated with deferred tax assets . these estimates and assumptions also affect the rate at which we charge depreciation , depletion and amortization to earnings . on an ongoing basis , management evaluates these estimates and assumptions ; however , actual amounts could differ from these estimates and assumptions . royalty interests in mineral properties royalty interests in mineral properties include acquired royalty interests in production , development and exploration stage properties . the costs of acquired royalty interests in mineral properties are capitalized as tangible assets as such interests do not meet the definition of a financial asset under the accounting standards codification ( `` asc `` ) guidance . acquisition costs of production stage royalty interests are depleted using the units of production method over the life of the mineral property , which is estimated using proven and probable reserves as provided by the operator . acquisition costs of royalty interests on development stage mineral properties , which are not yet in production , are not amortized until the property begins production . acquisition costs of royalty interests on exploration stage mineral properties , where there are no proven and probable reserves , are not amortized . at such time as the associated exploration stage mineral interests are converted to proven and probable reserves , the cost basis is amortized over the remaining life of the mineral property , using proven and probable reserves . the carrying values of exploration stage mineral interests are evaluated for impairment at such time as information becomes available indicating that the production will not occur in the future . exploration costs are expensed when incurred . asset impairment we evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the related carrying amounts of an asset or group of assets may not be recoverable . the recoverability of the carrying value of royalty interests in production and development stage mineral properties is evaluated based upon estimated future undiscounted net cash flows from each royalty interest property using estimates of proven and probable reserves and other relevant information received from the operators . we evaluate the recoverability of the carrying value of royalty interests in exploration stage mineral properties in the event of significant decreases in the price of gold , silver , copper , nickel and other metals , and whenever new information regarding the mineral properties is obtained from the operator indicating that production will not likely occur in the future thus affecting the future recoverability of our royalty interests . impairments in the carrying value of each property are measured and recorded to the extent that the carrying value in each property exceeds its estimated fair value , which is generally calculated using estimated future discounted cash flows . our estimates of gold , silver , copper , nickel and other metal prices , operator 's estimates of proven and probable reserves related to our royalty properties , and operator 's estimates of operating , capital and reclamation costs are subject to certain risks and uncertainties which may affect the recoverability of our investment in these royalty interests in mineral properties . although we have made our best assessment of these factors based on current conditions , it is possible that changes could occur , which could adversely affect the net cash flows expected to be generated from these royalty interests . story_separator_special_tag 47 results of operations fiscal year ended june 30 , 2012 , compared with fiscal year ended june 30 , 2011 for the fiscal year ended june 30 , 2012 , we recorded net income available to royal gold common stockholders of $ 92.5 million , or $ 1.61 per basic share and diluted share , compared to net income available to royal gold common stockholders of $ 71.4 million , or $ 1.29 per basic and diluted share , for the fiscal year ended june 30 , 2011. the increase in our earnings per share was primarily attributable to an increase in royalty revenue , as discussed further below . this increase was partially offset by an increase in production taxes , depletion expense , income tax expense and the royalty restructuring charge during the period , each of which are discussed further below . for fiscal year ended june 30 , 2012 , we recognized total royalty revenue of $ 263.1 million , at an average gold price of $ 1,673 per ounce , an average silver price of $ 33.26 per ounce , an average nickel price of $ 8.77 per pound and an average copper price of $ 3.71 per pound , compared to total royalty revenue of $ 216.5 million , at an average gold price of $ 1,369 per ounce , an average silver price of $ 28.61 per ounce , an average nickel price of $ 10.86 per pound and an average copper price of $ 3.92 per pound , for fiscal year ended june 30 , 2011. royalty revenue and the corresponding production , 48 attributable to our royalty interests , for the fiscal year ended june 30 , 2012 compared to the fiscal year ended june 30 , 2011 is as follows : royalty revenue and production subject to our royalty interests fiscal years ended june 30 , 2012 and 2011 ( in thousands , except reported production in ozs . and lbs . ) replace_table_token_20_th ( 1 ) reported production relates to the amount of metal sales , subject to our royalty interests , for the twelve months ended june 30 , 2012 and june 30 , 2011 , as reported to us by the operators of the mines . ( 2 ) `` other `` includes all of the company 's non-principal producing royalties as of june 30 , 2012. individually , no royalty included within the `` other `` category contributed greater than 5 % of our total royalty revenue for either period . 49 the increase in royalty revenue for the fiscal year ended june 30 , 2012 , compared with the fiscal year ended june 30 , 2011 , resulted primarily from an increase in the average gold and silver prices , increased production at andacollo , voisey 's bay , mulatos and dolores , the continued ramp-up at peñasquito , holt , las cruces , canadian malartic and wolverine . these increases were partially offset during the period due to decreases in production at cortez , leeville and robinson . refer to part i , item 2 , properties , for discussion and any updates on our principal producing properties . depreciation , depletion and amortization expense increased to $ 75.0 million for the fiscal year ended june 30 , 2012 , from $ 67.4 million for the fiscal year ended june 30 , 2011. the increase was primarily attributable to an increase in production at andacollo , voisey 's bay and las cruces , which resulted in additional depletion expense of approximately $ 8.3 million during the period . the increase was also attributable to the continued ramp-up at holt and canadian malartic , which resulted in additional depletion expense of approximately $ 4.3 million during the period . these increases were partially offset by a decrease in depletion at taparko of approximately $ 4.3 million , which was due to the dollar cap being met during the prior period . during the fiscal year ended june 30 , 2012 , we recognized income tax expense totaling $ 54.7 million compared with $ 39.0 million during the fiscal year ended june 30 , 2011. this resulted in an effective tax rate of 35.8 % during the current period , compared with 33.5 % in the prior period . the increase in the effective tax rate for the twelve months ended june 30 , 2012 is primarily related to an increase in tax expense and valuation allowances related to earnings from non-u.s. subsidiaries offset by a decrease in tax expense associated with the decrease in foreign currency exchange gains and the effect of excess depletion . fiscal year ended june 30 , 2011 , compared with fiscal year ended june 30 , 2010 for the fiscal year ended june 30 , 2011 , we recorded net income available to royal gold common stockholders of $ 71.4 million , or $ 1.29 per basic and diluted share , compared to net income available to royal gold common stockholders of $ 21.5 million , or $ 0.49 per basic and diluted share , for the fiscal year ended june 30 , 2010. the increase in our earnings per share during the fiscal year ended june 30 , 2011 was primarily attributable to an increase in royalty revenue , as discussed further below . the increase is also attributable to a decrease in one-time international royalty corporation ( `` irc `` ) severance and acquisition related costs of approximately $ 19.4 million , which were incurred during the period ended june 30 , 2010. these increases were partially offset by an increase in our total costs and expenses , which are each further discussed below . for fiscal year ended june 30 , 2011 , we recognized total royalty revenue of $ 216.5 million , at an average gold price of $ 1,369 per ounce , an average silver price of $ 28.61 per ounce , an average

we are also dependent on commodity prices for apples related to our applesauce production . commodity price volatility has , from time to time , exerted pressure on industry margins and operating results . increased government regulation . government agencies , as a result of concerns about the public health consequences and health care costs associated with obesity , have been proposing and , in some cases , enacting new taxes or regulations on sugar-sweetened and diet beverages . any changes of regulations or imposed taxes could reduce demand and or cause us to raise our prices . 28 increased health consciousness . consumers are increasingly becoming more concerned about health and wellness , focusing on caloric intake and sugar content in both regular csds and juices , the use of artificial sweeteners in diet csds and the use of natural , organic or simple ingredients in lrb products . we believe the main beneficiaries of this trend include bottled waters , naturally sweetened , low calorie drinks , all natural and organic beverages and ready-to-drink teas . our completion of the bai brands merger on january 31 , 2017 will allow us to continue distribution and capture additional growth as a result of this key trend . increased competition in the lrb market . a number of our competitors are large corporations with significant financial resources . these competitors can use their resources and scale to rapidly respond to competitive pressures and changes in consumer preferences by introducing new products , reducing prices or increasing promotional activities , which could reduce the demand for our products . fluctuations in foreign exchange rates . we are exposed to foreign currency exchange rate variability in the expected future cash flows associated with certain third-party and intercompany transactions denominated in currencies other than our mexican and canadian entities ' functional currencies . we use derivative instruments such as foreign exchange forward contracts to mitigate a portion of our exposure in these expected future cash flows to changes in foreign exchange rates . significant changes in these exchange rates will impact our results of operations . product and packaging innovation . we believe brand owners and bottling companies will continue to create new products and packages , such as beverages with new ingredients and new premium flavors and innovative convenient packaging , that address changes in consumer tastes and preferences . changing retailer landscape . as retailers continue to consolidate , we believe retailers will support consumer product companies that can provide an attractive portfolio of products , a strong value proposition and efficient delivery . refer to item 1a , `` risk factors `` of this annual report on form 10-k for additional information about risks and uncertainties facing our company . seasonality the beverage market is subject to some seasonal variations . our beverage sales are generally higher during the warmer months and also can be influenced by the timing of holidays as well as weather fluctuations . segments as of december 31 , 2017 , we report our business in four operating segments : the beverage concentrates segment reflects sales of the company 's branded concentrates and syrup to third party bottlers primarily in the u.s. and canada . most of the brands in this segment are carbonated soft drink brands . the packaged beverages excluding bai segment reflects sales in the u.s. and canada from the manufacture and distribution of finished beverages and other products , including sales of the company 's own brands and third party brands , through both dsd and wd . the bai segment reflects sales of bai brands finished goods to third party distributors , primarily in the u.s. , as net sales to the packaged beverages excluding bai segment are eliminated in consolidation . refer to note 3 of the notes to our audited consolidated financial statements for further information regarding the impact of bai brands merger on the company 's net sales presented in the consolidated statements of income . the latin america beverages segment reflects sales in the mexico , caribbean , and other international markets from the manufacture and distribution of concentrates , syrup and finished beverages . the company has determined that packaged beverages excluding bai and bai , which have been identified as operating segments , meet the aggregation criteria under u.s. gaap . as such , these segments have been aggregated into one reportable segment , packaged beverages , based on similarities among the operating units including economic characteristics , the nature of the products and services , the nature of the production processes , the types or class of customer for their products and services , the methods used to distribute their products and services and the nature of the regulatory environment . 29 volume in evaluating our performance , we consider different volume measures depending on whether we sell beverage concentrates or finished beverages . beverage concentrates sales volume in our beverage concentrates segment , we measure our sales volume in two ways : ( 1 ) `` concentrate case sales `` and ( 2 ) `` bottler case sales . `` the unit of measurement for both concentrate case sales and bottler case sales equals 288 fluid ounces of finished beverage , the equivalent of 24 twelve ounce servings . concentrate case sales represent units of measurement for concentrates sold by us to our bottlers and distributors . a concentrate case is the amount of concentrate needed to make one case of 288 fluid ounces of finished beverage . it does not include any other component of the finished beverage other than concentrate . our net sales in our concentrate businesses are based on our sales of concentrate cases . although net sales in our concentrate businesses are based on concentrate case sales , we believe that bottler case sales are also a significant measure of our performance because they measure sales of packaged beverages into retail channels . story_separator_special_tag sop in creased $ 31 million for the year ended december 31 , 2017 , compared with the year ended december 31 , 2016 , primarily driven by an increase in net sales which was partially offset by higher sg & a expenses . the increase in sg & a expenses was primarily the result of a $ 13 million increase in marketing investments and higher people costs , partially offset by lower incentive compensation . 35 volume ( bcs ) . volume ( bcs ) increased 1 % for the year ended december 31 , 2017 , compared with the year ended december 31 , 2016 . canada dry and schweppes had gains of 4 % and 2 % , respectively , due to continued growth in the ginger ale category for both brands and the sparkling water category for canada dry . these increases were partially offset by decreases in a & w and 7up , which declined 2 % and 1 % , respectively , compared to the prior year . our other brands declined 1 % in total , primarily as a result of discontinuing the distribution of country time in 2016. dr pepper was flat compared to the prior year driven by increases in our fountain business fully offset by declines in ten and diet . packaged beverages the following table details our packaged beverages segment 's net sales and sop for the years ended december 31 , 2017 and 2016 : replace_table_token_7_th volume . branded csd volumes were flat for the year ended december 31 , 2017 compared with the year ended december 31 , 2016 . canada dry in creased 5 % due to continued growth in the ginger ale category . this increase was fully offset by a 2 % decrease in 7up , a 2 % decline in a & w and a 2 % decline in other csd brands . dr pepper was flat as growth in regular was fully offset by declines in ten and diet . branded ncb volumes in creased 4 % for the year ended december 31 , 2017 compared with the year ended december 31 , 2016 . bai increased 99 % driven by the acquired bai brands shipments to third parties since the bai brands merger and continued growth in our existing distribution as a result of distribution gains and product innovation . our growth allied brands gained 40 % due primarily to distribution gains for bodyarmor , core and fiji , and product innovation for bodyarmor . mott 's increased 1 % compared to the prior year as growth in our sauce products was partially offset by declines in juice . clamato increased 3 % . these increases were partially offset as snapple declined 3 % due to competitive headwinds , the de-emphasis on our value products , and lower promotional activity partially offset by the launch of our new pet packaging for our 16 oz . bottles and the takes 2 to mango flavor innovation . other ncb brands were 5 % lower , led by rockstar , arizona and hawaiian punch . the decline in rockstar is due to the loss of distribution rights beginning in april 2017. contract manufacturing increased 1 % for the year ended december 31 , 2017 compared with the year ended december 31 , 2016 . net sales . net sales in creased $ 175 million for the year ended december 31 , 2017 compared with the year ended december 31 , 2016 . net sales increased due to favorable product and package mix , as a result of our ncbs , including our allied brands , $ 64 million in acquired bai brands shipments to third parties since the bai brands merger , and higher organic sales volumes . these increases were partially offset by the loss of the rockstar distribution . sop . sop de creased $ 80 million for the year ended december 31 , 2017 , compared with the year ended december 31 , 2016 , as increases in sg & a expenses and cost of sales more than offset the increase in net sales . cost of sales increased as a primary result of higher costs associated with product and package mix , as a result of our ncbs , including our allied brands , and an increase in costs associated with the acquired bai brands shipments to third parties since the bai brands merger and the initial $ 9 million profit in stock adjustment as a result of the bai brands merger . cost of sales was additionally impacted by the increase in other manufacturing costs and the unfavorable change in our lifo inventory provision . these increases were partially offset by the incremental profit margin benefit we experienced as a result of becoming the brand owner for bai brands and ongoing productivity improvements . sg & a expenses increased driven primarily by the bai brands merger , which includes the acquired operating costs , primarily marketing and people costs , as well as transaction and integration expenses . sg & a expenses further increased due to higher people costs , driven by inflationary increases and additional frontline labor investment . 36 latin america beverages the following table details our latin america beverages segment 's net sales and sop for the years ended december 31 , 2017 and 2016 : replace_table_token_8_th volume . sales volume in creased 3 % for the year ended december 31 , 2017 as compared with the year ended december 31 , 2016 . the in crease in sales volume was primarily driven by a 5 % in crease in peñafiel as a result of distribution gains , increased promotional activity and product innovation , partially offset by increased competition . squirt had a 2 % gain due to increased sales to third party bottlers and product innovation . clamato increased 2 % due to product innovation , distribution gains and increased promotional activity . our

liquidity based on our current and anticipated level of operations , without giving effect to the transaction , we believe that our operating cash flows and cash on hand will be sufficient to meet our anticipated obligations for the next twelve months . to the extent that our operating cash flows are not sufficient to meet our liquidity needs , we may utilize amounts available under our financing arrangements , if necessary . the following table summarizes our cash activity for the years ended december 31 , 2017 , 2016 and 2015 : replace_table_token_14_th net cash provided by operating activities net cash provided by operating activities in creased $ 77 million for the year ended december 31 , 2017 , as compared to the year ended december 31 , 2016 , primarily due to the impact of certain reconciling adjustments to net cash provided by operating activities , partially offset by a unfavorable change in working capital . net cash provided by operating activities de creased $ 53 million for the year ended december 31 , 2016 , as compared to the year ended december 31 , 2015 , primarily due to our $ 35 million multi-employer pension plan settlement payment . net cash used in investing activities 2017 cash used in investing activities for the year ended december 31 , 2017 consisted primarily of cash paid in connection with our bai brands merger of $ 1,556 million and purchases of property , plant and equipment of $ 202 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 based on our current and anticipated level of operations , without giving effect to the transaction , we believe that our operating cash flows and cash on hand will be sufficient to meet our anticipated obligations for the next twelve months . to the extent that our operating cash flows are not sufficient to meet our liquidity needs , we may utilize amounts available under our financing arrangements , if necessary . the following table summarizes our cash activity for the years ended december 31 , 2017 , 2016 and 2015 : replace_table_token_14_th net cash provided by operating activities net cash provided by operating activities in creased $ 77 million for the year ended december 31 , 2017 , as compared to the year ended december 31 , 2016 , primarily due to the impact of certain reconciling adjustments to net cash provided by operating activities , partially offset by a unfavorable change in working capital . net cash provided by operating activities de creased $ 53 million for the year ended december 31 , 2016 , as compared to the year ended december 31 , 2015 , primarily due to our $ 35 million multi-employer pension plan settlement payment . net cash used in investing activities 2017 cash used in investing activities for the year ended december 31 , 2017 consisted primarily of cash paid in connection with our bai brands merger of $ 1,556 million and purchases of property , plant and equipment of $ 202 million . ``` Suspicious Activity Report : we are also dependent on commodity prices for apples related to our applesauce production . commodity price volatility has , from time to time , exerted pressure on industry margins and operating results . increased government regulation . government agencies , as a result of concerns about the public health consequences and health care costs associated with obesity , have been proposing and , in some cases , enacting new taxes or regulations on sugar-sweetened and diet beverages . any changes of regulations or imposed taxes could reduce demand and or cause us to raise our prices . 28 increased health consciousness . consumers are increasingly becoming more concerned about health and wellness , focusing on caloric intake and sugar content in both regular csds and juices , the use of artificial sweeteners in diet csds and the use of natural , organic or simple ingredients in lrb products . we believe the main beneficiaries of this trend include bottled waters , naturally sweetened , low calorie drinks , all natural and organic beverages and ready-to-drink teas . our completion of the bai brands merger on january 31 , 2017 will allow us to continue distribution and capture additional growth as a result of this key trend . increased competition in the lrb market . a number of our competitors are large corporations with significant financial resources . these competitors can use their resources and scale to rapidly respond to competitive pressures and changes in consumer preferences by introducing new products , reducing prices or increasing promotional activities , which could reduce the demand for our products . fluctuations in foreign exchange rates . we are exposed to foreign currency exchange rate variability in the expected future cash flows associated with certain third-party and intercompany transactions denominated in currencies other than our mexican and canadian entities ' functional currencies . we use derivative instruments such as foreign exchange forward contracts to mitigate a portion of our exposure in these expected future cash flows to changes in foreign exchange rates . significant changes in these exchange rates will impact our results of operations . product and packaging innovation . we believe brand owners and bottling companies will continue to create new products and packages , such as beverages with new ingredients and new premium flavors and innovative convenient packaging , that address changes in consumer tastes and preferences . changing retailer landscape . as retailers continue to consolidate , we believe retailers will support consumer product companies that can provide an attractive portfolio of products , a strong value proposition and efficient delivery . refer to item 1a , `` risk factors `` of this annual report on form 10-k for additional information about risks and uncertainties facing our company . seasonality the beverage market is subject to some seasonal variations . our beverage sales are generally higher during the warmer months and also can be influenced by the timing of holidays as well as weather fluctuations . segments as of december 31 , 2017 , we report our business in four operating segments : the beverage concentrates segment reflects sales of the company 's branded concentrates and syrup to third party bottlers primarily in the u.s. and canada . most of the brands in this segment are carbonated soft drink brands . the packaged beverages excluding bai segment reflects sales in the u.s. and canada from the manufacture and distribution of finished beverages and other products , including sales of the company 's own brands and third party brands , through both dsd and wd . the bai segment reflects sales of bai brands finished goods to third party distributors , primarily in the u.s. , as net sales to the packaged beverages excluding bai segment are eliminated in consolidation . refer to note 3 of the notes to our audited consolidated financial statements for further information regarding the impact of bai brands merger on the company 's net sales presented in the consolidated statements of income . the latin america beverages segment reflects sales in the mexico , caribbean , and other international markets from the manufacture and distribution of concentrates , syrup and finished beverages . the company has determined that packaged beverages excluding bai and bai , which have been identified as operating segments , meet the aggregation criteria under u.s. gaap . as such , these segments have been aggregated into one reportable segment , packaged beverages , based on similarities among the operating units including economic characteristics , the nature of the products and services , the nature of the production processes , the types or class of customer for their products and services , the methods used to distribute their products and services and the nature of the regulatory environment . 29 volume in evaluating our performance , we consider different volume measures depending on whether we sell beverage concentrates or finished beverages . beverage concentrates sales volume in our beverage concentrates segment , we measure our sales volume in two ways : ( 1 ) `` concentrate case sales `` and ( 2 ) `` bottler case sales . `` the unit of measurement for both concentrate case sales and bottler case sales equals 288 fluid ounces of finished beverage , the equivalent of 24 twelve ounce servings . concentrate case sales represent units of measurement for concentrates sold by us to our bottlers and distributors . a concentrate case is the amount of concentrate needed to make one case of 288 fluid ounces of finished beverage . it does not include any other component of the finished beverage other than concentrate . our net sales in our concentrate businesses are based on our sales of concentrate cases . although net sales in our concentrate businesses are based on concentrate case sales , we believe that bottler case sales are also a significant measure of our performance because they measure sales of packaged beverages into retail channels . story_separator_special_tag sop in creased $ 31 million for the year ended december 31 , 2017 , compared with the year ended december 31 , 2016 , primarily driven by an increase in net sales which was partially offset by higher sg & a expenses . the increase in sg & a expenses was primarily the result of a $ 13 million increase in marketing investments and higher people costs , partially offset by lower incentive compensation . 35 volume ( bcs ) . volume ( bcs ) increased 1 % for the year ended december 31 , 2017 , compared with the year ended december 31 , 2016 . canada dry and schweppes had gains of 4 % and 2 % , respectively , due to continued growth in the ginger ale category for both brands and the sparkling water category for canada dry . these increases were partially offset by decreases in a & w and 7up , which declined 2 % and 1 % , respectively , compared to the prior year . our other brands declined 1 % in total , primarily as a result of discontinuing the distribution of country time in 2016. dr pepper was flat compared to the prior year driven by increases in our fountain business fully offset by declines in ten and diet . packaged beverages the following table details our packaged beverages segment 's net sales and sop for the years ended december 31 , 2017 and 2016 : replace_table_token_7_th volume . branded csd volumes were flat for the year ended december 31 , 2017 compared with the year ended december 31 , 2016 . canada dry in creased 5 % due to continued growth in the ginger ale category . this increase was fully offset by a 2 % decrease in 7up , a 2 % decline in a & w and a 2 % decline in other csd brands . dr pepper was flat as growth in regular was fully offset by declines in ten and diet . branded ncb volumes in creased 4 % for the year ended december 31 , 2017 compared with the year ended december 31 , 2016 . bai increased 99 % driven by the acquired bai brands shipments to third parties since the bai brands merger and continued growth in our existing distribution as a result of distribution gains and product innovation . our growth allied brands gained 40 % due primarily to distribution gains for bodyarmor , core and fiji , and product innovation for bodyarmor . mott 's increased 1 % compared to the prior year as growth in our sauce products was partially offset by declines in juice . clamato increased 3 % . these increases were partially offset as snapple declined 3 % due to competitive headwinds , the de-emphasis on our value products , and lower promotional activity partially offset by the launch of our new pet packaging for our 16 oz . bottles and the takes 2 to mango flavor innovation . other ncb brands were 5 % lower , led by rockstar , arizona and hawaiian punch . the decline in rockstar is due to the loss of distribution rights beginning in april 2017. contract manufacturing increased 1 % for the year ended december 31 , 2017 compared with the year ended december 31 , 2016 . net sales . net sales in creased $ 175 million for the year ended december 31 , 2017 compared with the year ended december 31 , 2016 . net sales increased due to favorable product and package mix , as a result of our ncbs , including our allied brands , $ 64 million in acquired bai brands shipments to third parties since the bai brands merger , and higher organic sales volumes . these increases were partially offset by the loss of the rockstar distribution . sop . sop de creased $ 80 million for the year ended december 31 , 2017 , compared with the year ended december 31 , 2016 , as increases in sg & a expenses and cost of sales more than offset the increase in net sales . cost of sales increased as a primary result of higher costs associated with product and package mix , as a result of our ncbs , including our allied brands , and an increase in costs associated with the acquired bai brands shipments to third parties since the bai brands merger and the initial $ 9 million profit in stock adjustment as a result of the bai brands merger . cost of sales was additionally impacted by the increase in other manufacturing costs and the unfavorable change in our lifo inventory provision . these increases were partially offset by the incremental profit margin benefit we experienced as a result of becoming the brand owner for bai brands and ongoing productivity improvements . sg & a expenses increased driven primarily by the bai brands merger , which includes the acquired operating costs , primarily marketing and people costs , as well as transaction and integration expenses . sg & a expenses further increased due to higher people costs , driven by inflationary increases and additional frontline labor investment . 36 latin america beverages the following table details our latin america beverages segment 's net sales and sop for the years ended december 31 , 2017 and 2016 : replace_table_token_8_th volume . sales volume in creased 3 % for the year ended december 31 , 2017 as compared with the year ended december 31 , 2016 . the in crease in sales volume was primarily driven by a 5 % in crease in peñafiel as a result of distribution gains , increased promotional activity and product innovation , partially offset by increased competition . squirt had a 2 % gain due to increased sales to third party bottlers and product innovation . clamato increased 2 % due to product innovation , distribution gains and increased promotional activity . our

sales of weight management products are generally more sensitive to consumer trends , resulting in higher volatility than our other products . our sales of weight management products have been significantly influenced by the rapid increase and subsequent decline of products such as products containing ephedra , low carb products and cortislim ® . as a result of the ban of products containing ephedra by the fda in april 2004 , we added new weight management products to our weight management category , such as low-carb products , ephedra substitute products , and cortislim ® , , to offset the loss of ephedra product sales . however , the demand for low carb products overall have been on a consistent decline since early fiscal 2006 , which we believe was due to a change in demand for low carb products and the wider availability of popular products in the marketplace , and as such we have shifted our focus more to weight management products . during this decline in demand for low carb products we have continued to launch new weight management products , which has led to an increase in sales in our weight management category . moreover , as the rate of obesity increases and as the general public becomes increasingly more health conscious , we expect the demand for weight management products , albeit volatile , to continue to be strong in the near term . accordingly , we will continue to offer the highest quality products available in this segment . in addition to the weight management product lines , we intend to continue our focus in meeting the demands of an increasingly aging population , the effects of increasing costs of traditional healthcare and a rapidly growing fitness conscious public . we believe that the aging of the u. s. population provides us with an area of opportunity . the u.s. census bureau reports that the number of individuals in the 65 and over age group is expected to double in the next 25 years . moreover , it is estimated that by 2030 the 65 or older group will comprise 20 % of the population . the increase in the population of this age group , coupled with the need for 23 increased supplementation as digestive abilities wane , provides us with an enhanced sales opportunity . for example , anti-degenerative supplements , such as chondroitin sulfate , have demonstrated consistent increases in sales growth . we will continue to offer products such as chondroitin sulfate to meet the demands of this market segment . we believe that as the costs of healthcare continue to rise , lower-cost alternatives to prescription drugs and preventative supplementation will continue to be an option for the american consumer . according to the california healthcare foundation , medical spending as a percentage of gdp increased from 5.2 % to 16 % between 1960 and 2006 , and is projected to reach 19.5 % of gdp by 2017. as an increasing number of the population seeks to avoid costly medical issues and focuses on prevention through diet , supplementation and exercise , we expect the demand in this market segment to provide us with continued opportunities . for example , lower-cost alternatives to expensive cholesterol lowering medications such as fish oil ( essential fatty acids ) , are experiencing increasing popularity . according to the new journal delaware online , more than 50 million adults are involved in either some sort of regular fitness program or sports activity , with over 25 % of current health-club members being over the age of 55. according to the international health , racquet and sportsclub association , there has been a 3.3 % increase in health club participation from 2005 to 2006 , which is continuing the trend from 2001 through 2005 where there was a 20 % to 25 % percent increase in wellness program participants . moreover , studies by the british heart foundation found that adults over 40 who exercise are at less than half the risk of experiencing heart disease compared to their sedentary peers , which is information we believe will further fuel this growth . we believe that the increase in our sales of sports supplements , which help with recovery and performance , is an indication of this growth , and that this will continue as fitness programs become an accepted lifestyle rather than a trend . when taken in context of the rising costs of healthcare , we believe the vms industry as a whole stands to benefit . our historical results have also been significantly influenced by our new store openings . since the beginning of 2003 , we have opened 289 stores and operate 414 stores located in 37 states and the district of columbia as of march 6 , 2009. our stores typically require three to four years to mature , generating lower store level sales and store contribution in the initial years than our mature stores . as a result , new stores generally have a negative impact on our overall operating margin and sales per square foot . as our recently opened stores mature , we expect them to contribute meaningfully to our sales and store contribution . critical accounting policies the preparation of financial statements in conformity with accounting principles generally accepted in the united states of america requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements , and the reported amounts of revenue and expenses during the reporting period . critical accounting policies are those that are the most important portrayal of our financial condition and results of operations , and require our most difficult , subjective and complex judgments as a result of the need to make estimates about the effect of matters that are inherently uncertain . story_separator_special_tag the vitamins category was one of our fastest growing categories in fiscal 2008 , as we experienced significant growth in sales of multi-vitamins , as we released new special formulations this fiscal year , and in vitamin d , which we believe was due in part to recent favorable press . product sales in the sports nutrition category increased at a greater rate than the overall increase in net sales during the fiscal 2008 , and have done so since mid fiscal 2006. we believe this is due largely to the continued growth in the fitness-conscious market as well as the diversity of new product introductions . 28 direct net sales to our direct customers increased $ 3.1 million , or 4.1 % , to $ 79.0 million for fiscal 2008 compared to $ 75.9 million for fiscal 2007. the overall increase in our direct sales was due to an increase in internet sales of $ 9.8 million in fiscal 2008 , offset by a decrease in our catalog sales . the increase in our web-based sales was primarily due to a greater influx of customers this fiscal year as compared to fiscal 2007 , as a result of our prior web-based marketing initiatives . we have reduced our catalog circulation and catalog customer prospecting as we believe catalog purchasing in general is declining in popularity as a purchasing medium , especially in the wake of the growth of online shopping . in addition , as we continue to open more stores in new markets , some catalog customers choose to shop at our retail locations . cost of goods sold cost of goods sold , which includes product , warehouse and distribution and store occupancy costs , increased $ 45.3 million , or 12.6 % , to $ 405.7 million for fiscal 2008 compared to $ 360.3 million for fiscal 2007. the components of cost of goods sold are explained below . cost of goods sold as a percentage of net sales increased to 67.4 % for fiscal 2008 compared to 67.0 % for fiscal 2007. product costs increased $ 31.6 million , or 11.3 % , to $ 311.4 million during fiscal 2008 compared to $ 279.8 million for fiscal 2007. product costs as a percentage of net sales decreased to 51.8 % during fiscal 2008 compared to 52.0 % for fiscal 2007. the percentage decrease was primarily the result of a decrease in price promotions for our products of approximately 0.5 % ; a decrease in inventory markdowns of 0.3 % , as well as an increase in inventory efficiency of 0.3 % , offset in part by an increase in product costs of approximately 1.0 % as a percentage of sales in fiscal 2008 versus fiscal 2007. warehouse and distribution costs increased $ 3.2 million , or 17.3 % , to $ 21.8 million for fiscal 2008 compared to $ 18.6 million for fiscal 2007. warehouse and distribution costs as a percentage of net sales increased to 3.6 % for fiscal 2008 compared to 3.5 % in fiscal 2007. the increase was mainly attributable to increases in shipping costs as a result of a having significant number of new stores , with many of them being at greater distances , during fiscal 2008 as compared to fiscal 2007. occupancy costs increased $ 10.5 million , or 16.9 % , to $ 72.4 million for fiscal 2008 compared to $ 61.9 million for fiscal 2007. occupancy costs as a percentage of net sales increased to 12.0 % during fiscal 2008 compared to 11.5 % for fiscal 2007. this increase as a percentage of sales is mainly attributable to the increases in utilities and real estate tax expenses as well as increased rent for our newer store leases . gross profit as a result of the foregoing , gross profit increased $ 18.4 million , or 10.3 % , to $ 195.9 million for fiscal 2008 compared to $ 177.5 million for fiscal 2007. selling , general and administrative expenses selling , general and administrative expenses , including operating payroll and related benefits , advertising and promotion expense , and other selling , general and administrative expenses , increased $ 15.1 million , or 10.6 % , to $ 158.6 million during fiscal 200 8 , compared to $ 143.5 million for fiscal 2007. the components of selling , general and administrative expenses are explained below . selling , general and administrative expenses as a percentage of net sales for fiscal 2008 decreased to 26.4 % compared to 26.7 % for fiscal 2007. operating payroll and related benefits increased $ 5.6 million , or 10.4 % , to $ 59.0 million for fiscal 2008 compared to $ 53.5 million for fiscal 2007. the increase is due mainly to our increase in retail locations throughout fiscal 2008. operating payroll and related benefits expenses as a percentage of net sales decreased to 9.8 % during fiscal 2008 compared to 9.9 % for fiscal 2007. this was largely due to experiencing greater sales per hour during fiscal 2008. advertising and promotion expenses decreased $ 0.5 million , or 3.9 % , to $ 13.2 million for fiscal 2008 compared to $ 13.7 million for fiscal 2007. advertising and promotion expenses as a percentage of net sales decreased to 2.2 % during fiscal 2008 compared to 2.6 % for fiscal 2007 , as we are reducing our catalog advertising and prospecting efforts . 29 other selling , general and administrative expenses , which include depreciation and amortization expense , increased $ 10.1 million , or 13.3 % , to $ 86.4 million in fiscal 2008 compared to $ 76.3 million for fiscal 2007. the increase was due primarily to an increase in depreciation and amortization of approximately $ 2.6 million , reflecting our expanding operation and the amortization of the purchased intangible assets in fiscal 2008 ; $ 3.2 million for corporate payroll expense which was primarily due to an increase in

liquidity and capital resources our primary uses of cash are to fund working capital , operating expenses , debt service and capital expenditures related primarily to the construction of new stores . historically , we have financed these requirements from internally generated cash flow , supplemented with short-term financing . we believe that the cash generated by operations , together with the borrowing availability under the credit facility ( described below ) , will be sufficient to meet our working capital needs for the next twelve months , including investments made and expenses incurred in connection with our store growth plans , systems development and store improvements . during fiscal 2008 we spent approximately $ 27.9 million , out of the $ 31.9 million of total capital expenditures , in connection with our store growth and improvement plans . we expect to spend approximately $ 18.0 million on capital expenditures in fiscal 2009 , most of which will pertain to 30 to 35 new stores we anticipate opening throughout year . we opened 62 new stores during fiscal 34 2008 , and closed two stores . our working capital requirements for merchandise inventory will continue to increase as we continue to open additional stores . currently , our practice is to establish an inventory level of $ 165,000 to $ 200,000 at cost for each of our stores , a portion of which is vendor-financed based upon agreed credit terms . in addition , 30 day payment terms have been extended to us by some of our suppliers allowing us to effectively manage our inventory and working capital . we were in compliance with all debt covenants as of december 27 , 2008. at december 27 , 2008 , we had $ 1.6 million in cash and cash equivalents and $ 52.3 million in working capital compared with $ 1.5 million in cash and cash equivalents and $ 51.2 million in working capital at december 29 , 2007. we expect to be in compliance with these same debt covenants during fiscal 2009 as well .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources our primary uses of cash are to fund working capital , operating expenses , debt service and capital expenditures related primarily to the construction of new stores . historically , we have financed these requirements from internally generated cash flow , supplemented with short-term financing . we believe that the cash generated by operations , together with the borrowing availability under the credit facility ( described below ) , will be sufficient to meet our working capital needs for the next twelve months , including investments made and expenses incurred in connection with our store growth plans , systems development and store improvements . during fiscal 2008 we spent approximately $ 27.9 million , out of the $ 31.9 million of total capital expenditures , in connection with our store growth and improvement plans . we expect to spend approximately $ 18.0 million on capital expenditures in fiscal 2009 , most of which will pertain to 30 to 35 new stores we anticipate opening throughout year . we opened 62 new stores during fiscal 34 2008 , and closed two stores . our working capital requirements for merchandise inventory will continue to increase as we continue to open additional stores . currently , our practice is to establish an inventory level of $ 165,000 to $ 200,000 at cost for each of our stores , a portion of which is vendor-financed based upon agreed credit terms . in addition , 30 day payment terms have been extended to us by some of our suppliers allowing us to effectively manage our inventory and working capital . we were in compliance with all debt covenants as of december 27 , 2008. at december 27 , 2008 , we had $ 1.6 million in cash and cash equivalents and $ 52.3 million in working capital compared with $ 1.5 million in cash and cash equivalents and $ 51.2 million in working capital at december 29 , 2007. we expect to be in compliance with these same debt covenants during fiscal 2009 as well . ``` Suspicious Activity Report : sales of weight management products are generally more sensitive to consumer trends , resulting in higher volatility than our other products . our sales of weight management products have been significantly influenced by the rapid increase and subsequent decline of products such as products containing ephedra , low carb products and cortislim ® . as a result of the ban of products containing ephedra by the fda in april 2004 , we added new weight management products to our weight management category , such as low-carb products , ephedra substitute products , and cortislim ® , , to offset the loss of ephedra product sales . however , the demand for low carb products overall have been on a consistent decline since early fiscal 2006 , which we believe was due to a change in demand for low carb products and the wider availability of popular products in the marketplace , and as such we have shifted our focus more to weight management products . during this decline in demand for low carb products we have continued to launch new weight management products , which has led to an increase in sales in our weight management category . moreover , as the rate of obesity increases and as the general public becomes increasingly more health conscious , we expect the demand for weight management products , albeit volatile , to continue to be strong in the near term . accordingly , we will continue to offer the highest quality products available in this segment . in addition to the weight management product lines , we intend to continue our focus in meeting the demands of an increasingly aging population , the effects of increasing costs of traditional healthcare and a rapidly growing fitness conscious public . we believe that the aging of the u. s. population provides us with an area of opportunity . the u.s. census bureau reports that the number of individuals in the 65 and over age group is expected to double in the next 25 years . moreover , it is estimated that by 2030 the 65 or older group will comprise 20 % of the population . the increase in the population of this age group , coupled with the need for 23 increased supplementation as digestive abilities wane , provides us with an enhanced sales opportunity . for example , anti-degenerative supplements , such as chondroitin sulfate , have demonstrated consistent increases in sales growth . we will continue to offer products such as chondroitin sulfate to meet the demands of this market segment . we believe that as the costs of healthcare continue to rise , lower-cost alternatives to prescription drugs and preventative supplementation will continue to be an option for the american consumer . according to the california healthcare foundation , medical spending as a percentage of gdp increased from 5.2 % to 16 % between 1960 and 2006 , and is projected to reach 19.5 % of gdp by 2017. as an increasing number of the population seeks to avoid costly medical issues and focuses on prevention through diet , supplementation and exercise , we expect the demand in this market segment to provide us with continued opportunities . for example , lower-cost alternatives to expensive cholesterol lowering medications such as fish oil ( essential fatty acids ) , are experiencing increasing popularity . according to the new journal delaware online , more than 50 million adults are involved in either some sort of regular fitness program or sports activity , with over 25 % of current health-club members being over the age of 55. according to the international health , racquet and sportsclub association , there has been a 3.3 % increase in health club participation from 2005 to 2006 , which is continuing the trend from 2001 through 2005 where there was a 20 % to 25 % percent increase in wellness program participants . moreover , studies by the british heart foundation found that adults over 40 who exercise are at less than half the risk of experiencing heart disease compared to their sedentary peers , which is information we believe will further fuel this growth . we believe that the increase in our sales of sports supplements , which help with recovery and performance , is an indication of this growth , and that this will continue as fitness programs become an accepted lifestyle rather than a trend . when taken in context of the rising costs of healthcare , we believe the vms industry as a whole stands to benefit . our historical results have also been significantly influenced by our new store openings . since the beginning of 2003 , we have opened 289 stores and operate 414 stores located in 37 states and the district of columbia as of march 6 , 2009. our stores typically require three to four years to mature , generating lower store level sales and store contribution in the initial years than our mature stores . as a result , new stores generally have a negative impact on our overall operating margin and sales per square foot . as our recently opened stores mature , we expect them to contribute meaningfully to our sales and store contribution . critical accounting policies the preparation of financial statements in conformity with accounting principles generally accepted in the united states of america requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements , and the reported amounts of revenue and expenses during the reporting period . critical accounting policies are those that are the most important portrayal of our financial condition and results of operations , and require our most difficult , subjective and complex judgments as a result of the need to make estimates about the effect of matters that are inherently uncertain . story_separator_special_tag the vitamins category was one of our fastest growing categories in fiscal 2008 , as we experienced significant growth in sales of multi-vitamins , as we released new special formulations this fiscal year , and in vitamin d , which we believe was due in part to recent favorable press . product sales in the sports nutrition category increased at a greater rate than the overall increase in net sales during the fiscal 2008 , and have done so since mid fiscal 2006. we believe this is due largely to the continued growth in the fitness-conscious market as well as the diversity of new product introductions . 28 direct net sales to our direct customers increased $ 3.1 million , or 4.1 % , to $ 79.0 million for fiscal 2008 compared to $ 75.9 million for fiscal 2007. the overall increase in our direct sales was due to an increase in internet sales of $ 9.8 million in fiscal 2008 , offset by a decrease in our catalog sales . the increase in our web-based sales was primarily due to a greater influx of customers this fiscal year as compared to fiscal 2007 , as a result of our prior web-based marketing initiatives . we have reduced our catalog circulation and catalog customer prospecting as we believe catalog purchasing in general is declining in popularity as a purchasing medium , especially in the wake of the growth of online shopping . in addition , as we continue to open more stores in new markets , some catalog customers choose to shop at our retail locations . cost of goods sold cost of goods sold , which includes product , warehouse and distribution and store occupancy costs , increased $ 45.3 million , or 12.6 % , to $ 405.7 million for fiscal 2008 compared to $ 360.3 million for fiscal 2007. the components of cost of goods sold are explained below . cost of goods sold as a percentage of net sales increased to 67.4 % for fiscal 2008 compared to 67.0 % for fiscal 2007. product costs increased $ 31.6 million , or 11.3 % , to $ 311.4 million during fiscal 2008 compared to $ 279.8 million for fiscal 2007. product costs as a percentage of net sales decreased to 51.8 % during fiscal 2008 compared to 52.0 % for fiscal 2007. the percentage decrease was primarily the result of a decrease in price promotions for our products of approximately 0.5 % ; a decrease in inventory markdowns of 0.3 % , as well as an increase in inventory efficiency of 0.3 % , offset in part by an increase in product costs of approximately 1.0 % as a percentage of sales in fiscal 2008 versus fiscal 2007. warehouse and distribution costs increased $ 3.2 million , or 17.3 % , to $ 21.8 million for fiscal 2008 compared to $ 18.6 million for fiscal 2007. warehouse and distribution costs as a percentage of net sales increased to 3.6 % for fiscal 2008 compared to 3.5 % in fiscal 2007. the increase was mainly attributable to increases in shipping costs as a result of a having significant number of new stores , with many of them being at greater distances , during fiscal 2008 as compared to fiscal 2007. occupancy costs increased $ 10.5 million , or 16.9 % , to $ 72.4 million for fiscal 2008 compared to $ 61.9 million for fiscal 2007. occupancy costs as a percentage of net sales increased to 12.0 % during fiscal 2008 compared to 11.5 % for fiscal 2007. this increase as a percentage of sales is mainly attributable to the increases in utilities and real estate tax expenses as well as increased rent for our newer store leases . gross profit as a result of the foregoing , gross profit increased $ 18.4 million , or 10.3 % , to $ 195.9 million for fiscal 2008 compared to $ 177.5 million for fiscal 2007. selling , general and administrative expenses selling , general and administrative expenses , including operating payroll and related benefits , advertising and promotion expense , and other selling , general and administrative expenses , increased $ 15.1 million , or 10.6 % , to $ 158.6 million during fiscal 200 8 , compared to $ 143.5 million for fiscal 2007. the components of selling , general and administrative expenses are explained below . selling , general and administrative expenses as a percentage of net sales for fiscal 2008 decreased to 26.4 % compared to 26.7 % for fiscal 2007. operating payroll and related benefits increased $ 5.6 million , or 10.4 % , to $ 59.0 million for fiscal 2008 compared to $ 53.5 million for fiscal 2007. the increase is due mainly to our increase in retail locations throughout fiscal 2008. operating payroll and related benefits expenses as a percentage of net sales decreased to 9.8 % during fiscal 2008 compared to 9.9 % for fiscal 2007. this was largely due to experiencing greater sales per hour during fiscal 2008. advertising and promotion expenses decreased $ 0.5 million , or 3.9 % , to $ 13.2 million for fiscal 2008 compared to $ 13.7 million for fiscal 2007. advertising and promotion expenses as a percentage of net sales decreased to 2.2 % during fiscal 2008 compared to 2.6 % for fiscal 2007 , as we are reducing our catalog advertising and prospecting efforts . 29 other selling , general and administrative expenses , which include depreciation and amortization expense , increased $ 10.1 million , or 13.3 % , to $ 86.4 million in fiscal 2008 compared to $ 76.3 million for fiscal 2007. the increase was due primarily to an increase in depreciation and amortization of approximately $ 2.6 million , reflecting our expanding operation and the amortization of the purchased intangible assets in fiscal 2008 ; $ 3.2 million for corporate payroll expense which was primarily due to an increase in

and regulators expect banks to be monitoring key measures like liquidity in real time . aci 's focus has always been on the real-time execution of transactions and delivery of information through real-time tools such as dashboards so our experience will be valuable in addressing this trend . increasing competition . the electronic payments market is highly competitive and subject to rapid change . our competition comes from in-house information technology departments , third-party electronic payment processors and third-party software companies located both within and outside of the united states . many of these companies are significantly larger than us and have significantly greater financial , technical and marketing resources . as electronic payment transaction volumes increase , third-party processors tend to provide competition to our solutions , particularly among customers that do not seek to differentiate their electronic payment offerings or are eliminating banks from the payments service reducing the need for our solutions . as consolidation in the financial services industry continues , we anticipate that competition for those customers will intensify . adoption of cloud technology . in an effort to leverage lower-cost computing technologies some financial institutions , retailers and electronic payment processors are seeking to transition their systems to make use of cloud technology . currently this is impacting areas such as customer relationship management systems rather than payment services . our investment in aci on demand provides us the grounding to deliver cloud capabilities in the future . 28 electronic payments fraud and compliance . as electronic payment transaction volumes increase , criminal elements continue to find ways to commit a growing volume of fraudulent transactions using a wide range of techniques . financial institutions , retailers and electronic payment processors continue to seek ways to leverage new technologies to identify and prevent fraudulent transactions and other attacks such as denial of service attacks . due to concerns with international terrorism and money laundering , financial institutions in particular are being faced with increasing scrutiny and regulatory pressures . we continue to see opportunity to offer our fraud detection solutions to help customers manage the growing levels of electronic payment fraud and compliance activity . adoption of smartcard technology . in many markets , card issuers are being required to issue new cards with embedded chip technology , most recently in the united states . chip-based cards are more secure , harder to copy and offer the opportunity for multiple functions on one card ( e.g . debit , credit , electronic purse , identification , health records , etc . ) . the emv standard for issuing and processing debit and credit card transactions has emerged as the global standard , with many regions throughout the world working on emv rollouts . the primary benefit of emv deployment is a reduction in electronic payment fraud , with the additional benefit that the core infrastructure necessary for multi-function chip cards is being put in place ( e.g . , chip card readers in atms and pos devices ) allowing the deployment of other technologies like contactless . we are working with many customers around the world to facilitate emv deployments , leveraging several of our solutions . single euro payments area ( “sepa” ) . the sepa , primarily focused on the european economic community and the united kingdom , is designed to facilitate lower costs for cross-border payments and reduce timeframes for settling electronic payment transactions . recent moves to set an end date for the transition to sepa payment mechanisms will drive more volume to these systems with the potential to cause banks to review the capabilities of the systems supporting these payments . our retail and wholesale banking solutions facilitate key functions that help financial institutions address these mandated regulations . financial institution consolidation . consolidation continues on a national and international basis , as financial institutions seek to add market share and increase overall efficiency . such consolidations have increased , and may continue to increase , in their number , size and market impact as a result of the global economic crisis and the financial crisis affecting the banking and financial industries . there are several potential negative effects of increased consolidation activity . continuing consolidation of financial institutions may result in a smaller number of existing and potential customers for our products and services . consolidation of two of our customers could result in reduced revenues if the combined entity were to negotiate greater volume discounts or discontinue use of certain of our products . additionally , if a non-customer and a customer combine and the combined entity decides to forego future use of our products , our revenue would decline . conversely , we could benefit from the combination of a non-customer and a customer when the combined entity continues use of our products and , as a larger combined entity , increases its demand for our products and services . we tend to focus on larger financial institutions as customers , often resulting in our solutions being the solutions that survive in the consolidated entity . global vendor sourcing . global and regional financial institutions , processors and retailers are aiming to reduce the costs in supplier management by picking suppliers who can service them across all their geographies instead of allowing each country operation to choose suppliers independently . our global footprint from both customer and a delivery perspective enable us to be successful in this global sourced market . however , projects in these environments tend to be more complex and therefore of higher risk . electronic payments convergence . as electronic payment volumes grow and pressures to lower overall cost per transaction increase , financial institutions are seeking methods to consolidate their payment processing across the enterprise . we believe that the strategy of using service-oriented-architectures to allow for re-use of common electronic payment functions such as authentication , authorization , routing and settlement will become more common . story_separator_special_tag selling and marketing selling and marketing includes both the costs related to selling our products to current and prospective customers as well as the costs related to promoting the company , its products and the research efforts required to measure customers ' future needs and satisfaction levels . selling costs are primarily the human resource and travel costs related to the effort expended to license our products and services to current and potential clients within defined territories and or industries as well as the management of the overall relationship with customer accounts . selling costs also include the costs associated with assisting distributors in their efforts to sell our products and services in their respective local markets . marketing costs include costs needed to promote the company and its products as well as perform or acquire market research to help us better understand what products our customers are looking for in the future . marketing costs also include the costs associated with measuring customers ' opinions toward the company , our products and personnel . 36 selling and marketing expense increased $ 6.1 million , or 7.6 % , in the year ended december 31 , 2012 compared to the same period in 2011 primarily as a result of $ 12.0 million from the addition of s1 , partially offset by a $ 5.9 million decrease in personnel related expenses . general and administrative general and administrative expenses are primarily human resource costs including executive salaries and benefits , personnel administration costs , and the costs of corporate support functions such as legal , administrative , human resources and finance and accounting . general and administrative expense increased $ 37.3 million , or 52.3 % , in the year ended december 31 , 2012 compared to the same period in 2011. there were approximately $ 31.5 million and $ 6.7 million of one-time expenses incurred in the year ended december 31 , 2012 , and december 31 , 2011 , respectively . included in the $ 31.5 million of one-time expenses for the year ended december 31 , 2012 were $ 14.2 million of severance expense and accelerated share-based compensation expense , $ 4.1 million related to investment banking fees , $ 5.4 million related to it outsource termination charges , and data center relocations , $ 4.9 million related to facility termination charges and $ 2.9 million of additional professional fees related to the acquisition of s1 . additionally , $ 11.3 million of the increase was the result of the addition of s1 . excluding these expenses , total general and administrative expenses increased $ 1.2 million in the year ended december 31 , 2012 compared to the same period in 2011 , primarily due to increased personnel related expenses . depreciation and amortization depreciation and amortization expense increased $ 14.9 million , or 67.8 % , in the year ended december 31 , 2012 compared to the same period in 2011 primarily as a result of $ 12.7 million from the addition of s1 and $ 1.1 million from the addition of north data and distra acquisition intangible amortization . other income and expense interest income for the year ended december 31 , 2012 decreased $ 0.4 million , or 30.5 % , as compared to the same period in 2011. the decrease in interest income is primarily due to $ 0.5 million in interest related to a tax refund recognized during the year ended december 31 , 2011. interest expense for the year ended december 31 , 2012 increased $ 8.0 million as compared to the same period in 2011 due to the increased debt used to partially fund the s1 acquisition during the first quarter of 2012. other , net consists of foreign currency losses and other non-operating items . other income ( expense ) for the years ended december 31 , 2012 and 2011 were $ 0.4 million and $ ( 0.8 ) million , respectively . we realized a gain of $ 1.6 million on the shares of s1 stock previously held as available-for-sale during the year ended december 31 , 2012. income taxes the effective tax rates for the years ended december 31 , 2012 and 2011 were approximately 25.2 % and 28.7 % , respectively . our effective tax rate each year varies from our federal statutory rate because we operate in multiple foreign countries where we apply their tax laws and rates which vary from those that we apply to the income we generate from our domestic operations . of the foreign jurisdictions in which we operate , our december 31 , 2012 and 2011 effective tax rates were most impacted by our operations in canada , ireland and united kingdom where the tax rates are significantly less than the united states . the effective tax rate for the year ended december 31 , 2012 was positively impacted by a $ 1.6 million release of an accrued tax liability and a favorable adjustment of $ 1.7 million to the company 's uncertain tax positions . the accrued tax liability and the accrual for uncertain positions are no longer required as the statute of limitations expired for the tax returns to which they are associated during 2012. the effective tax rate for the year ended december 31 , 2011 was positively impacted by the release of a $ 3.1 million liability due to the expiration of a contractual obligation related to the transfer of certain intellectual property rights from the united states to non-united states entities . the effective tax rate for the year ended december 31 , 2011 was also positively impacted by a favorable adjustment of $ 4.4 million to our reserve for uncertain tax positions partially offset by the reversal of related deferred tax assets of $ 2.4 million . year ended december 31 , 2011 compared to year ended december 31 , 2010 revenues total revenues for the year ended december 31 , 2011 increased $ 46.7

debt , for terms of the financing arrangement . the acquisition of s1 positions us as a full-service global leader of financial and payment solutions , with the ability to deliver the broadest suite of payment offerings globally targeting financial organizations , processors and retailers – supported by a global team of expert , local employees . s1 brings to the company a highly complementary set of products , strong global capabilities and success with a range of financial institutions and retailers . we have achieved annual cost synergies of approximately $ 48 million with the integration of s1 . we anticipate we will achieve an additional $ 5 million in cost synergies as a result of it , facilities , and data center consolidations in future periods . in addition , the increased global scale and expected cost savings are expected to generate margin expansion . backlog included in backlog estimates are all software license fees , maintenance fees and services specified in executed contracts , as well as revenues from assumed contract renewals to the extent that we believe recognition of the related revenue will occur within the corresponding backlog period . we have historically included assumed renewals in backlog estimates based upon automatic renewal provisions in the executed contract and our historic experience with customer renewal rates . our 60-month backlog estimate represents expected revenues from existing customers using the following key assumptions : 31 maintenance fees are assumed to exist for the duration of the license term for those contracts in which the committed maintenance term is less than the committed license term . license and facilities management arrangements are assumed to renew at the end of their committed term at a rate consistent with our historical experiences . non-recurring license arrangements are assumed to renew as recurring revenue streams . foreign currency exchange rates are assumed to remain constant over the 60-month backlog period for those contracts stated in currencies other than the u.s. dollar . our pricing policies and practices are assumed to remain constant over the 60-month backlog 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. ```debt , for terms of the financing arrangement . the acquisition of s1 positions us as a full-service global leader of financial and payment solutions , with the ability to deliver the broadest suite of payment offerings globally targeting financial organizations , processors and retailers – supported by a global team of expert , local employees . s1 brings to the company a highly complementary set of products , strong global capabilities and success with a range of financial institutions and retailers . we have achieved annual cost synergies of approximately $ 48 million with the integration of s1 . we anticipate we will achieve an additional $ 5 million in cost synergies as a result of it , facilities , and data center consolidations in future periods . in addition , the increased global scale and expected cost savings are expected to generate margin expansion . backlog included in backlog estimates are all software license fees , maintenance fees and services specified in executed contracts , as well as revenues from assumed contract renewals to the extent that we believe recognition of the related revenue will occur within the corresponding backlog period . we have historically included assumed renewals in backlog estimates based upon automatic renewal provisions in the executed contract and our historic experience with customer renewal rates . our 60-month backlog estimate represents expected revenues from existing customers using the following key assumptions : 31 maintenance fees are assumed to exist for the duration of the license term for those contracts in which the committed maintenance term is less than the committed license term . license and facilities management arrangements are assumed to renew at the end of their committed term at a rate consistent with our historical experiences . non-recurring license arrangements are assumed to renew as recurring revenue streams . foreign currency exchange rates are assumed to remain constant over the 60-month backlog period for those contracts stated in currencies other than the u.s. dollar . our pricing policies and practices are assumed to remain constant over the 60-month backlog period . ``` Suspicious Activity Report : and regulators expect banks to be monitoring key measures like liquidity in real time . aci 's focus has always been on the real-time execution of transactions and delivery of information through real-time tools such as dashboards so our experience will be valuable in addressing this trend . increasing competition . the electronic payments market is highly competitive and subject to rapid change . our competition comes from in-house information technology departments , third-party electronic payment processors and third-party software companies located both within and outside of the united states . many of these companies are significantly larger than us and have significantly greater financial , technical and marketing resources . as electronic payment transaction volumes increase , third-party processors tend to provide competition to our solutions , particularly among customers that do not seek to differentiate their electronic payment offerings or are eliminating banks from the payments service reducing the need for our solutions . as consolidation in the financial services industry continues , we anticipate that competition for those customers will intensify . adoption of cloud technology . in an effort to leverage lower-cost computing technologies some financial institutions , retailers and electronic payment processors are seeking to transition their systems to make use of cloud technology . currently this is impacting areas such as customer relationship management systems rather than payment services . our investment in aci on demand provides us the grounding to deliver cloud capabilities in the future . 28 electronic payments fraud and compliance . as electronic payment transaction volumes increase , criminal elements continue to find ways to commit a growing volume of fraudulent transactions using a wide range of techniques . financial institutions , retailers and electronic payment processors continue to seek ways to leverage new technologies to identify and prevent fraudulent transactions and other attacks such as denial of service attacks . due to concerns with international terrorism and money laundering , financial institutions in particular are being faced with increasing scrutiny and regulatory pressures . we continue to see opportunity to offer our fraud detection solutions to help customers manage the growing levels of electronic payment fraud and compliance activity . adoption of smartcard technology . in many markets , card issuers are being required to issue new cards with embedded chip technology , most recently in the united states . chip-based cards are more secure , harder to copy and offer the opportunity for multiple functions on one card ( e.g . debit , credit , electronic purse , identification , health records , etc . ) . the emv standard for issuing and processing debit and credit card transactions has emerged as the global standard , with many regions throughout the world working on emv rollouts . the primary benefit of emv deployment is a reduction in electronic payment fraud , with the additional benefit that the core infrastructure necessary for multi-function chip cards is being put in place ( e.g . , chip card readers in atms and pos devices ) allowing the deployment of other technologies like contactless . we are working with many customers around the world to facilitate emv deployments , leveraging several of our solutions . single euro payments area ( “sepa” ) . the sepa , primarily focused on the european economic community and the united kingdom , is designed to facilitate lower costs for cross-border payments and reduce timeframes for settling electronic payment transactions . recent moves to set an end date for the transition to sepa payment mechanisms will drive more volume to these systems with the potential to cause banks to review the capabilities of the systems supporting these payments . our retail and wholesale banking solutions facilitate key functions that help financial institutions address these mandated regulations . financial institution consolidation . consolidation continues on a national and international basis , as financial institutions seek to add market share and increase overall efficiency . such consolidations have increased , and may continue to increase , in their number , size and market impact as a result of the global economic crisis and the financial crisis affecting the banking and financial industries . there are several potential negative effects of increased consolidation activity . continuing consolidation of financial institutions may result in a smaller number of existing and potential customers for our products and services . consolidation of two of our customers could result in reduced revenues if the combined entity were to negotiate greater volume discounts or discontinue use of certain of our products . additionally , if a non-customer and a customer combine and the combined entity decides to forego future use of our products , our revenue would decline . conversely , we could benefit from the combination of a non-customer and a customer when the combined entity continues use of our products and , as a larger combined entity , increases its demand for our products and services . we tend to focus on larger financial institutions as customers , often resulting in our solutions being the solutions that survive in the consolidated entity . global vendor sourcing . global and regional financial institutions , processors and retailers are aiming to reduce the costs in supplier management by picking suppliers who can service them across all their geographies instead of allowing each country operation to choose suppliers independently . our global footprint from both customer and a delivery perspective enable us to be successful in this global sourced market . however , projects in these environments tend to be more complex and therefore of higher risk . electronic payments convergence . as electronic payment volumes grow and pressures to lower overall cost per transaction increase , financial institutions are seeking methods to consolidate their payment processing across the enterprise . we believe that the strategy of using service-oriented-architectures to allow for re-use of common electronic payment functions such as authentication , authorization , routing and settlement will become more common . story_separator_special_tag selling and marketing selling and marketing includes both the costs related to selling our products to current and prospective customers as well as the costs related to promoting the company , its products and the research efforts required to measure customers ' future needs and satisfaction levels . selling costs are primarily the human resource and travel costs related to the effort expended to license our products and services to current and potential clients within defined territories and or industries as well as the management of the overall relationship with customer accounts . selling costs also include the costs associated with assisting distributors in their efforts to sell our products and services in their respective local markets . marketing costs include costs needed to promote the company and its products as well as perform or acquire market research to help us better understand what products our customers are looking for in the future . marketing costs also include the costs associated with measuring customers ' opinions toward the company , our products and personnel . 36 selling and marketing expense increased $ 6.1 million , or 7.6 % , in the year ended december 31 , 2012 compared to the same period in 2011 primarily as a result of $ 12.0 million from the addition of s1 , partially offset by a $ 5.9 million decrease in personnel related expenses . general and administrative general and administrative expenses are primarily human resource costs including executive salaries and benefits , personnel administration costs , and the costs of corporate support functions such as legal , administrative , human resources and finance and accounting . general and administrative expense increased $ 37.3 million , or 52.3 % , in the year ended december 31 , 2012 compared to the same period in 2011. there were approximately $ 31.5 million and $ 6.7 million of one-time expenses incurred in the year ended december 31 , 2012 , and december 31 , 2011 , respectively . included in the $ 31.5 million of one-time expenses for the year ended december 31 , 2012 were $ 14.2 million of severance expense and accelerated share-based compensation expense , $ 4.1 million related to investment banking fees , $ 5.4 million related to it outsource termination charges , and data center relocations , $ 4.9 million related to facility termination charges and $ 2.9 million of additional professional fees related to the acquisition of s1 . additionally , $ 11.3 million of the increase was the result of the addition of s1 . excluding these expenses , total general and administrative expenses increased $ 1.2 million in the year ended december 31 , 2012 compared to the same period in 2011 , primarily due to increased personnel related expenses . depreciation and amortization depreciation and amortization expense increased $ 14.9 million , or 67.8 % , in the year ended december 31 , 2012 compared to the same period in 2011 primarily as a result of $ 12.7 million from the addition of s1 and $ 1.1 million from the addition of north data and distra acquisition intangible amortization . other income and expense interest income for the year ended december 31 , 2012 decreased $ 0.4 million , or 30.5 % , as compared to the same period in 2011. the decrease in interest income is primarily due to $ 0.5 million in interest related to a tax refund recognized during the year ended december 31 , 2011. interest expense for the year ended december 31 , 2012 increased $ 8.0 million as compared to the same period in 2011 due to the increased debt used to partially fund the s1 acquisition during the first quarter of 2012. other , net consists of foreign currency losses and other non-operating items . other income ( expense ) for the years ended december 31 , 2012 and 2011 were $ 0.4 million and $ ( 0.8 ) million , respectively . we realized a gain of $ 1.6 million on the shares of s1 stock previously held as available-for-sale during the year ended december 31 , 2012. income taxes the effective tax rates for the years ended december 31 , 2012 and 2011 were approximately 25.2 % and 28.7 % , respectively . our effective tax rate each year varies from our federal statutory rate because we operate in multiple foreign countries where we apply their tax laws and rates which vary from those that we apply to the income we generate from our domestic operations . of the foreign jurisdictions in which we operate , our december 31 , 2012 and 2011 effective tax rates were most impacted by our operations in canada , ireland and united kingdom where the tax rates are significantly less than the united states . the effective tax rate for the year ended december 31 , 2012 was positively impacted by a $ 1.6 million release of an accrued tax liability and a favorable adjustment of $ 1.7 million to the company 's uncertain tax positions . the accrued tax liability and the accrual for uncertain positions are no longer required as the statute of limitations expired for the tax returns to which they are associated during 2012. the effective tax rate for the year ended december 31 , 2011 was positively impacted by the release of a $ 3.1 million liability due to the expiration of a contractual obligation related to the transfer of certain intellectual property rights from the united states to non-united states entities . the effective tax rate for the year ended december 31 , 2011 was also positively impacted by a favorable adjustment of $ 4.4 million to our reserve for uncertain tax positions partially offset by the reversal of related deferred tax assets of $ 2.4 million . year ended december 31 , 2011 compared to year ended december 31 , 2010 revenues total revenues for the year ended december 31 , 2011 increased $ 46.7

the policy with zurich was a guaranteed cost plan under which all claims are paid by zurich . zurich story_separator_special_tag the following management 's discussion and analysis reviews significant factors with respect to our financial condition at december 29 , 2017 , and results of operations for the fiscal years ended december 29 , 2017 and december 30 , 2016. this discussion should be read in conjunction with the consolidated financial statements , notes , tables , and selected financial data presented elsewhere in this report . our discussion and analysis contains forward-looking statements that are provided to assist in the understanding of anticipated future financial performance . however , such performance involves risks and uncertainties that may cause actual results to differ materially from those discussed in such forward-looking statements . a cautionary statement regarding forward-looking statements is set forth under the caption “ special note regarding forward-looking statements ” immediately prior to item 1 of this annual report on form 10-k. this discussion and analysis should be considered in light of such cautionary statements and the risk factors disclosed elsewhere in this report . 17 the following table reflects operating results from 2017 and 2016 ( in thousands , except per share amounts and percentages ) . percentages indicate line items as a percentage of total revenue . the table serves as the basis for the narrative discussion that follows . replace_table_token_5_th earnings before interest , taxes , depreciation and amortization , and non-cash compensation , or ebitda , is a non-gaap measure that represents our net income before interest expense , income tax expense , depreciation and amortization , and non-cash compensation . we utilize ebitda as a financial measure , as management believes investors find it a useful tool to perform more meaningful comparisons of past , present and future operating results and as a means to evaluate our operational results . we believe it is a complement to net income and other financial performance measures . ebitda is not intended to represent net income as defined by u.s. gaap , and such information should not be considered as an alternative to net income or any other measure of performance prescribed by u.s. gaap . we use ebitda to measure our financial performance because we believe interest , taxes , depreciation and amortization , and non-cash compensation bear little or no relationship to our operating performance . by excluding interest expense , ebitda measures our financial performance irrespective of our capital structure or how we finance our operations . by excluding taxes on income , we believe ebitda provides a basis for measuring the financial performance of our operations excluding factors that our branches can not control . by excluding depreciation and amortization expense , ebitda measures the financial performance of our operations without regard to their historical cost . by excluding non-cash compensation , ebitda provides a basis for measuring the financial performance of our operations excluding the value of our stock and stock options . for all of these reasons , we believe that ebitda provides us and investors with information that is relevant and useful in evaluating our business . however , because ebitda excludes depreciation and amortization , it does not measure the capital we require to maintain or preserve our fixed assets . in addition , because ebitda does not reflect interest expense , it does not take into account the total amount of interest we pay on outstanding debt nor does it show trends in interest costs due to changes in our financing or changes in interest rates . ebitda , as defined by us , may not be comparable to ebitda as reported by other companies that do not define ebitda exactly as we define the term . because we use ebitda to evaluate our financial performance , we reconcile it to net income , which is the most comparable financial measure calculated and presented in accordance with u.s. gaap . 18 the following is a reconciliation of ebitda to net income for the periods presented ( in thousands ) : replace_table_token_6_th results of operations fifty-two weeks ended december 29 , 2017 summary of operations : revenue increased approximately $ 4.8 million , or 5.2 % , to $ 98.1 million in 2017 from $ 93.3 million in 2016. our fiscal year ended december 30 , 2016 had 53 weeks and benefited from the inclusion of an additional week when compared to 2017 , with average weekly revenue in 2016 being approximately $ 1.8 million . in june 2016 , we acquired substantially all of the assets of hancock . in 2017 , revenue from the two hancock branches totaled approximately $ 7.6 million , an increase of approximately $ 3.1 million over 2016. revenue from our other branches ( excluding hancock ) in 2017 increased approximately $ 1.7 million , and when taking into consideration the additional week in 2016 , 2017 increased approximately $ 3.5 million . our branches serve a wide variety of customers and industries across 23 states . our individual branch revenue can fluctuate significantly on both a quarter-over-quarter and year-over-year basis depending on the local economic conditions and need for temporary labor services in the local economy . one of our goals is to increase the diversity of customers and industries we service at both the branch and the company level . we believe this will reduce the potential negative impact of an economic downturn in any one industry or region . story_separator_special_tag cost of staffing services : cost of staffing services decreased 0.5 % to 74.1 % of revenue in 2017 from 74.6 % in 2016. this decrease was primarily due to a 0.7 % relative decrease in our state unemployment insurance costs in 2017 , as we have placed an increased emphasis on managing this portion of our business in the last two years . state unemployment tax rates fluctuate annually based on our actual experience in each state related to claims filed by former employees . we also saw a relative decrease of 0.1 % in workers ' compensation insurance costs in 2017 , which can fluctuate as a result of changes to the mix of work performed during the year , safety of our field team members , changes in our claims history and ongoing claims management , and changes in actuarial assumptions . we perform site visits to ensure our employees are working in a safe environment , provide safety training when appropriate , and actively manage our workers ' compensation claims to minimize our expense and exposure . the aforementioned decreases were offset by a 0.3 % increase in compensation paid to our temporary employees due to competitive forces in a tightening labor market , as well as increases in minimum wages in some states in which we operate , which can result in fluctuations in the compensation paid to our temporary workforce in order to provide quality field team members to our customers . selling , general and administrative expenses , or sg & a : sg & a , relative to revenue , decreased 2.1 % to 21.8 % in 2017 from 23.9 % in 2016. this relative decrease is due to a decrease in internal salaries and related payroll taxes of 0.7 % , a decrease our provision for bad debt of 0.8 % , and decreased consulting and recruiting expense of 0.4 % , as turnover after the relocation of the corporate headquarters to denver has returned to normal levels . we also had small decreases in many areas as we continue to aggressively and effectively manage costs . these decreases were offset by an increase of 0.4 % in professional services related to the proxy contest and statement effected by ephraim fields . 19 story_separator_special_tag statements . workers ' compensation reserves : in accordance with the terms of our workers ' compensation liability insurance policy , we maintain reserves for workers ' compensation claims to cover our cost of all claims . we use third party actuarial estimates of the future costs of the claims and related expenses discounted by a 5 % present value interest rate to determine the amount of our reserves . the discount rate was increased to 5 % from 3 % in prior years to more accurately reflect our risk tolerance and the active management of workers ' compensation claims . we evaluate the reserves quarterly and make adjustments as needed . if the actual cost of the claims incurred and related expenses exceed the amounts estimated , additional reserves may be required . accounts receivable and allowance for doubtful accounts : accounts receivable are carried at their estimated recoverable amount , net of allowances . the allowance for doubtful accounts is determined based on historical write-off experience , age of receivable , other qualitative factors and extenuating circumstances , and current economic data and represents our best estimate of the amount of probable losses on our accounts receivable . the allowance for doubtful accounts is reviewed monthly and past due balances are written-off when it is probable that the receivable will not be collected . at december 29 , 2017 and december 30 , 2016 , our allowance for doubtful accounts was approximately $ 282,000 and $ 899,000 , respectively . goodwill and other intangible assets : goodwill represents the excess purchase price over the fair value of identifiable assets received attributable to business acquisitions and combinations . goodwill and other intangible assets are measured for impairment at least annually and whenever events and circumstances arise that indicate impairment may exist , such as a significant adverse change in the business climate . in assessing the value of goodwill , assets and liabilities are assigned to the reporting units and the appropriate valuation methodologies are used to determine fair value at the reporting unit level . identified intangible assets are amortized using the straight-line method over their estimated useful lives which are estimated to be between two and seven years . income taxes : we account for income taxes under the liability method , whereby deferred income tax liabilities or assets at the end of each period are determined using the enacted tax rate expected to be in effect when the taxes are actually paid or recovered . a valuation allowance is recognized on deferred tax assets when it is more likely than not that some or all of these deferred tax assets will not be realized . our policy is to prescribe a recognition threshold and measurement attribute for the recognition and measurement of a tax position taken or expected to be taken in a tax return . we have analyzed our filing positions in all jurisdictions where we are required to file returns and found no positions that would require a liability for unrecognized income tax positions to be recognized . in the event that we are assessed penalties and or interest , penalties will be charged to other financing expense and interest will be charged to interest expense . share-based compensation : periodically , we issue common shares or options to purchase our common shares to our officers , directors , employees , or other parties . compensation expense for these equity awards are recognized over the vesting period , based on the fair value on the grant date . we recognize compensation expense for only the portion of options that are expected to vest , rather than record forfeitures when they occur

liquidity and capital resources we believe that our cash flow from operations , working capital balances at december 29 , 2017 , and access to our account purchase agreement will be sufficient to fund anticipated operations through march 2019. at december 29 , 2017 , our current assets exceeded our current liabilities by approximately $ 13.3 million . included in current assets is cash of approximately $ 7.8 million and trade accounts receivable of $ 9.4 million . included in current liabilities are accrued wages and benefits of approximately $ 1.5 million , and the current portion of workers ' compensation claims liability of approximately $ 1.0 million . the liability related to our account purchase agreement facility was approximately $ 854,000 and $ 388,000 at december 29 , 2017 and december 30 , 2016 , respectively . the current financing agreement is an account purchase agreement with wells fargo bank , n.a . which allows us to sell eligible accounts receivable for 90 % of the invoiced amount on a full recourse basis up to the facility maximum , or $ 14.0 million at december 29 , 2017. when the receivable is collected , the remaining 10 % is paid to us , less applicable fees and interest . the term of the agreement is through april 7 , 2020. the agreement bears interest at the daily one month london interbank offered rate plus 2.50 % per annum . at december 29 , 2017 the effective interest rate was 4.06 % . interest is payable on the actual amount advanced . additional charges include an annual facility fee equal to 0.50 % of the facility threshold in place and lockbox fees . as collateral for repayment of any and all obligations , we granted wells fargo bank , n.a .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources we believe that our cash flow from operations , working capital balances at december 29 , 2017 , and access to our account purchase agreement will be sufficient to fund anticipated operations through march 2019. at december 29 , 2017 , our current assets exceeded our current liabilities by approximately $ 13.3 million . included in current assets is cash of approximately $ 7.8 million and trade accounts receivable of $ 9.4 million . included in current liabilities are accrued wages and benefits of approximately $ 1.5 million , and the current portion of workers ' compensation claims liability of approximately $ 1.0 million . the liability related to our account purchase agreement facility was approximately $ 854,000 and $ 388,000 at december 29 , 2017 and december 30 , 2016 , respectively . the current financing agreement is an account purchase agreement with wells fargo bank , n.a . which allows us to sell eligible accounts receivable for 90 % of the invoiced amount on a full recourse basis up to the facility maximum , or $ 14.0 million at december 29 , 2017. when the receivable is collected , the remaining 10 % is paid to us , less applicable fees and interest . the term of the agreement is through april 7 , 2020. the agreement bears interest at the daily one month london interbank offered rate plus 2.50 % per annum . at december 29 , 2017 the effective interest rate was 4.06 % . interest is payable on the actual amount advanced . additional charges include an annual facility fee equal to 0.50 % of the facility threshold in place and lockbox fees . as collateral for repayment of any and all obligations , we granted wells fargo bank , n.a . ``` Suspicious Activity Report : the policy with zurich was a guaranteed cost plan under which all claims are paid by zurich . zurich story_separator_special_tag the following management 's discussion and analysis reviews significant factors with respect to our financial condition at december 29 , 2017 , and results of operations for the fiscal years ended december 29 , 2017 and december 30 , 2016. this discussion should be read in conjunction with the consolidated financial statements , notes , tables , and selected financial data presented elsewhere in this report . our discussion and analysis contains forward-looking statements that are provided to assist in the understanding of anticipated future financial performance . however , such performance involves risks and uncertainties that may cause actual results to differ materially from those discussed in such forward-looking statements . a cautionary statement regarding forward-looking statements is set forth under the caption “ special note regarding forward-looking statements ” immediately prior to item 1 of this annual report on form 10-k. this discussion and analysis should be considered in light of such cautionary statements and the risk factors disclosed elsewhere in this report . 17 the following table reflects operating results from 2017 and 2016 ( in thousands , except per share amounts and percentages ) . percentages indicate line items as a percentage of total revenue . the table serves as the basis for the narrative discussion that follows . replace_table_token_5_th earnings before interest , taxes , depreciation and amortization , and non-cash compensation , or ebitda , is a non-gaap measure that represents our net income before interest expense , income tax expense , depreciation and amortization , and non-cash compensation . we utilize ebitda as a financial measure , as management believes investors find it a useful tool to perform more meaningful comparisons of past , present and future operating results and as a means to evaluate our operational results . we believe it is a complement to net income and other financial performance measures . ebitda is not intended to represent net income as defined by u.s. gaap , and such information should not be considered as an alternative to net income or any other measure of performance prescribed by u.s. gaap . we use ebitda to measure our financial performance because we believe interest , taxes , depreciation and amortization , and non-cash compensation bear little or no relationship to our operating performance . by excluding interest expense , ebitda measures our financial performance irrespective of our capital structure or how we finance our operations . by excluding taxes on income , we believe ebitda provides a basis for measuring the financial performance of our operations excluding factors that our branches can not control . by excluding depreciation and amortization expense , ebitda measures the financial performance of our operations without regard to their historical cost . by excluding non-cash compensation , ebitda provides a basis for measuring the financial performance of our operations excluding the value of our stock and stock options . for all of these reasons , we believe that ebitda provides us and investors with information that is relevant and useful in evaluating our business . however , because ebitda excludes depreciation and amortization , it does not measure the capital we require to maintain or preserve our fixed assets . in addition , because ebitda does not reflect interest expense , it does not take into account the total amount of interest we pay on outstanding debt nor does it show trends in interest costs due to changes in our financing or changes in interest rates . ebitda , as defined by us , may not be comparable to ebitda as reported by other companies that do not define ebitda exactly as we define the term . because we use ebitda to evaluate our financial performance , we reconcile it to net income , which is the most comparable financial measure calculated and presented in accordance with u.s. gaap . 18 the following is a reconciliation of ebitda to net income for the periods presented ( in thousands ) : replace_table_token_6_th results of operations fifty-two weeks ended december 29 , 2017 summary of operations : revenue increased approximately $ 4.8 million , or 5.2 % , to $ 98.1 million in 2017 from $ 93.3 million in 2016. our fiscal year ended december 30 , 2016 had 53 weeks and benefited from the inclusion of an additional week when compared to 2017 , with average weekly revenue in 2016 being approximately $ 1.8 million . in june 2016 , we acquired substantially all of the assets of hancock . in 2017 , revenue from the two hancock branches totaled approximately $ 7.6 million , an increase of approximately $ 3.1 million over 2016. revenue from our other branches ( excluding hancock ) in 2017 increased approximately $ 1.7 million , and when taking into consideration the additional week in 2016 , 2017 increased approximately $ 3.5 million . our branches serve a wide variety of customers and industries across 23 states . our individual branch revenue can fluctuate significantly on both a quarter-over-quarter and year-over-year basis depending on the local economic conditions and need for temporary labor services in the local economy . one of our goals is to increase the diversity of customers and industries we service at both the branch and the company level . we believe this will reduce the potential negative impact of an economic downturn in any one industry or region . story_separator_special_tag cost of staffing services : cost of staffing services decreased 0.5 % to 74.1 % of revenue in 2017 from 74.6 % in 2016. this decrease was primarily due to a 0.7 % relative decrease in our state unemployment insurance costs in 2017 , as we have placed an increased emphasis on managing this portion of our business in the last two years . state unemployment tax rates fluctuate annually based on our actual experience in each state related to claims filed by former employees . we also saw a relative decrease of 0.1 % in workers ' compensation insurance costs in 2017 , which can fluctuate as a result of changes to the mix of work performed during the year , safety of our field team members , changes in our claims history and ongoing claims management , and changes in actuarial assumptions . we perform site visits to ensure our employees are working in a safe environment , provide safety training when appropriate , and actively manage our workers ' compensation claims to minimize our expense and exposure . the aforementioned decreases were offset by a 0.3 % increase in compensation paid to our temporary employees due to competitive forces in a tightening labor market , as well as increases in minimum wages in some states in which we operate , which can result in fluctuations in the compensation paid to our temporary workforce in order to provide quality field team members to our customers . selling , general and administrative expenses , or sg & a : sg & a , relative to revenue , decreased 2.1 % to 21.8 % in 2017 from 23.9 % in 2016. this relative decrease is due to a decrease in internal salaries and related payroll taxes of 0.7 % , a decrease our provision for bad debt of 0.8 % , and decreased consulting and recruiting expense of 0.4 % , as turnover after the relocation of the corporate headquarters to denver has returned to normal levels . we also had small decreases in many areas as we continue to aggressively and effectively manage costs . these decreases were offset by an increase of 0.4 % in professional services related to the proxy contest and statement effected by ephraim fields . 19 story_separator_special_tag statements . workers ' compensation reserves : in accordance with the terms of our workers ' compensation liability insurance policy , we maintain reserves for workers ' compensation claims to cover our cost of all claims . we use third party actuarial estimates of the future costs of the claims and related expenses discounted by a 5 % present value interest rate to determine the amount of our reserves . the discount rate was increased to 5 % from 3 % in prior years to more accurately reflect our risk tolerance and the active management of workers ' compensation claims . we evaluate the reserves quarterly and make adjustments as needed . if the actual cost of the claims incurred and related expenses exceed the amounts estimated , additional reserves may be required . accounts receivable and allowance for doubtful accounts : accounts receivable are carried at their estimated recoverable amount , net of allowances . the allowance for doubtful accounts is determined based on historical write-off experience , age of receivable , other qualitative factors and extenuating circumstances , and current economic data and represents our best estimate of the amount of probable losses on our accounts receivable . the allowance for doubtful accounts is reviewed monthly and past due balances are written-off when it is probable that the receivable will not be collected . at december 29 , 2017 and december 30 , 2016 , our allowance for doubtful accounts was approximately $ 282,000 and $ 899,000 , respectively . goodwill and other intangible assets : goodwill represents the excess purchase price over the fair value of identifiable assets received attributable to business acquisitions and combinations . goodwill and other intangible assets are measured for impairment at least annually and whenever events and circumstances arise that indicate impairment may exist , such as a significant adverse change in the business climate . in assessing the value of goodwill , assets and liabilities are assigned to the reporting units and the appropriate valuation methodologies are used to determine fair value at the reporting unit level . identified intangible assets are amortized using the straight-line method over their estimated useful lives which are estimated to be between two and seven years . income taxes : we account for income taxes under the liability method , whereby deferred income tax liabilities or assets at the end of each period are determined using the enacted tax rate expected to be in effect when the taxes are actually paid or recovered . a valuation allowance is recognized on deferred tax assets when it is more likely than not that some or all of these deferred tax assets will not be realized . our policy is to prescribe a recognition threshold and measurement attribute for the recognition and measurement of a tax position taken or expected to be taken in a tax return . we have analyzed our filing positions in all jurisdictions where we are required to file returns and found no positions that would require a liability for unrecognized income tax positions to be recognized . in the event that we are assessed penalties and or interest , penalties will be charged to other financing expense and interest will be charged to interest expense . share-based compensation : periodically , we issue common shares or options to purchase our common shares to our officers , directors , employees , or other parties . compensation expense for these equity awards are recognized over the vesting period , based on the fair value on the grant date . we recognize compensation expense for only the portion of options that are expected to vest , rather than record forfeitures when they occur

annually the company reviews this unused material and establishes an obsolescence reserve for the amount it does not expect to use over the next three years . income taxes deferred tax assets and liabilities are based on the net tax effects of tax credits , operating loss carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes . the company considers many factors in assessing whether or not a valuation allowance for its deferred tax asset is warranted . on the positive side , the company considered such factors as its : history of taxable earnings ( three of the last four years had operating profits ) , global customer base consisting of large companies with significant resources , current products and their expected life , technological advantages , potential for price increases , trend of improved manufacturing efficiencies and the magnitude of the deferred tax asset compared with the company 's expectation of future earnings over the remaining life of the asset . on the negative side , the company considered such factors as : the global economic environment , the company 's ability to absorb a period of operating losses and negative cash flow and the potential for the technological breakthroughs and substitution of the company 's products by lower cost solutions . at december 30 , 2017 the company 's deferred tax asset and other temporary differences will require taxable income of approximately $ 11 million and reversals of existing temporary differences to fully utilize , assuming an effective corporate tax rate of 21 % based on the recently enacted tax cuts and jobs act . the company has concluded that it is more likely than not that its deferred tax asset will be fully realized . current projections of future taxable income , including the reversal of temporary differences , reflect the company 's belief that it has attractive growth opportunities and a favorable cost structure . these projections support the conclusion that the company will generate taxable income sufficient to utilize the losses before they expire . the company 's policy is to recognize interest and penalties related to income tax matters in income tax expense . as of december 30 , 2017 and december 31 , 2016 , the company had no accruals for interest or penalties related to income tax matters . the company did not have any uncertain tax positions at december 30 , 2017 or december 31 , 2016 which required accrual or disclosure . income tax effects related to share-based compensation that are in excess , or less than , grant-date fair value , less any proceeds received on exercise of stock prices , are recognized . results of operations results of operations for the year 2017 ( “ 2017 ” ) compared with the year 2016 ( “ 2016 ” ) : total revenue was $ 14.6 million in 2017 , a 5 % decrease compared with total revenue of $ 15.4 million in 2016. this decrease was due primarily to a reduction in the sales of armor products . there were no significant price changes during 2017 compared with 2016. gross margin in 2017 totaled $ 1.7 million or 11 % of sales . this compares with $ 2.2 million , or 14 % of sales , generated during 2016. this decline in margin was due primarily to lower revenues . selling , general and administrative ( sg & a ) expenses were $ 3.6 million during 2017 , an increase of 8 % compared with sg & a expenses of $ 3.3 million incurred during 2016. during 2017 the company incurred approximately $ 0.2 million in one-time legal and other costs associated with the annual proxy process and $ 0.2 million associated with the separation of an executive officer , offset by other cost reductions . the company generated interest of $ 11 thousand in 2017. this compares with interest and other income in 2016 of $ 51 thousand , $ 40 thousand of which was due to the sale of used equipment in excess of book value . primarily as a result of lower volume and higher sg & a spending , as cited above , the company incurred an operating loss of $ 2.0 million in 2017 , compared with an operating loss of $ 1.2 million last year . in 2017 the effective tax rate was 11 % and as a result the operating loss of $ 2.0 million led to a net loss of $ 1.7 million . this unusually low effective rate was due in large part to the impact of the tax cuts and jobs act which reduced the corporate statutory rate from 35 % to 21 % . the effective tax rate in 2016 was 60 % in which case the operating loss of $ 1.2 million resulted in a net loss of $ 0.5 million . significant fourth quarter activity in 2017 : revenues totaled $ 3.8 million versus $ 2.9 million in the last quarter of 2016 , representing a 32 % increase . this increase was entirely due higher shipments of baseplates . the impact of price changes was insignificant in the quarter compared with the same period in 2016. gross margin increased in the fourth quarter of 2017 compared with the fourth quarter of 2016 from $ 77 thousand to $ 563 thousand . this increase was directly associated with the increase in sales volume . there was no significant impact from price changes during the last quarter of 2017 compared with the last quarter of 2016. sg & a expenses increased from $ 773 thousand to $ 959 thousand . this increase was due to the fact that the company incurred $ 230 thousand of costs associated with the resignation of an executive officer . all other sg & a costs were down $ 44 thousand quarter on quarter . primarily story_separator_special_tag annually the company reviews this unused material and establishes an obsolescence reserve for the amount it does not expect to use over the next three years . income taxes deferred tax assets and liabilities are based on the net tax effects of tax credits , operating loss carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes . the company considers many factors in assessing whether or not a valuation allowance for its deferred tax asset is warranted . on the positive side , the company considered such factors as its : history of taxable earnings ( three of the last four years had operating profits ) , global customer base consisting of large companies with significant resources , current products and their expected life , technological advantages , potential for price increases , trend of improved manufacturing efficiencies and the magnitude of the deferred tax asset compared with the company 's expectation of future earnings over the remaining life of the asset . on the negative side , the company considered such factors as : the global economic environment , the company 's ability to absorb a period of operating losses and negative cash flow and the potential for the technological breakthroughs and substitution of the company 's products by lower cost solutions . at december 30 , 2017 the company 's deferred tax asset and other temporary differences will require taxable income of approximately $ 11 million and reversals of existing temporary differences to fully utilize , assuming an effective corporate tax rate of 21 % based on the recently enacted tax cuts and jobs act . the company has concluded that it is more likely than not that its deferred tax asset will be fully realized . current projections of future taxable income , including the reversal of temporary differences , reflect the company 's belief that it has attractive growth opportunities and a favorable cost structure . these projections support the conclusion that the company will generate taxable income sufficient to utilize the losses before they expire . the company 's policy is to recognize interest and penalties related to income tax matters in income tax expense . as of december 30 , 2017 and december 31 , 2016 , the company had no accruals for interest or penalties related to income tax matters . the company did not have any uncertain tax positions at december 30 , 2017 or december 31 , 2016 which required accrual or disclosure . income tax effects related to share-based compensation that are in excess , or less than , grant-date fair value , less any proceeds received on exercise of stock prices , are recognized . results of operations results of operations for the year 2017 ( “ 2017 ” ) compared with the year 2016 ( “ 2016 ” ) : total revenue was $ 14.6 million in 2017 , a 5 % decrease compared with total revenue of $ 15.4 million in 2016. this decrease was due primarily to a reduction in the sales of armor products . there were no significant price changes during 2017 compared with 2016. gross margin in 2017 totaled $ 1.7 million or 11 % of sales . this compares with $ 2.2 million , or 14 % of sales , generated during 2016. this decline in margin was due primarily to lower revenues . selling , general and administrative ( sg & a ) expenses were $ 3.6 million during 2017 , an increase of 8 % compared with sg & a expenses of $ 3.3 million incurred during 2016. during 2017 the company incurred approximately $ 0.2 million in one-time legal and other costs associated with the annual proxy process and $ 0.2 million associated with the separation of an executive officer , offset by other cost reductions . the company generated interest of $ 11 thousand in 2017. this compares with interest and other income in 2016 of $ 51 thousand , $ 40 thousand of which was due to the sale of used equipment in excess of book value . primarily as a result of lower volume and higher sg & a spending , as cited above , the company incurred an operating loss of $ 2.0 million in 2017 , compared with an operating loss of $ 1.2 million last year . in 2017 the effective tax rate was 11 % and as a result the operating loss of $ 2.0 million led to a net loss of $ 1.7 million . this unusually low effective rate was due in large part to the impact of the tax cuts and jobs act which reduced the corporate statutory rate from 35 % to 21 % . the effective tax rate in 2016 was 60 % in which case the operating loss of $ 1.2 million resulted in a net loss of $ 0.5 million . significant fourth quarter activity in 2017 : revenues totaled $ 3.8 million versus $ 2.9 million in the last quarter of 2016 , representing a 32 % increase . this increase was entirely due higher shipments of baseplates . the impact of price changes was insignificant in the quarter compared with the same period in 2016. gross margin increased in the fourth quarter of 2017 compared with the fourth quarter of 2016 from $ 77 thousand to $ 563 thousand . this increase was directly associated with the increase in sales volume . there was no significant impact from price changes during the last quarter of 2017 compared with the last quarter of 2016. sg & a expenses increased from $ 773 thousand to $ 959 thousand . this increase was due to the fact that the company incurred $ 230 thousand of costs associated with the resignation of an executive officer . all other sg & a costs were down $ 44 thousand quarter on quarter . primarily

liquidity and capital resources : the company 's cash and cash equivalents at december 30 , 2017 totaled $ 1.3 million compared with cash and cash equivalents at december 31 , 2016 of $ 3.4 million . this decrease was due to operating losses and , to a lesser extent , an increase in working capital , offset in small part by depreciation in excess of capital expenditures . accounts receivable at december 30 , 2017 totaled $ 2.9 million compared with $ 2.0 million at december 31 , 2016. days sales outstanding ( dsos ) , increased from 61 days at the end of 2016 to 70 days at the end of 2017. both of these statistics are consistent with historical patterns and do not represent a change in terms of an increase in the aging of receivables . inventories totaled $ 2.1 million at december 30 , 2017 , compared with inventories of $ 2.0 million at december 31 , 2016. the inventory turnover in 2016 was 5.6 times and 6.7 times for 2017 . ( both based on a 5 point inventory average ) . all consigned inventory is shipped under existing purchase orders and per customers ' requests . of the inventory of $ 2.1 million at december 30 , 2017 , $ 742 thousand was located at customers ' locations pursuant to consigned inventory agreements . of the total inventory of $ 2.0 million at december 31 , 2016 , $ 848 thousand was located at customers ' locations pursuant to consigned inventory agreements .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources : the company 's cash and cash equivalents at december 30 , 2017 totaled $ 1.3 million compared with cash and cash equivalents at december 31 , 2016 of $ 3.4 million . this decrease was due to operating losses and , to a lesser extent , an increase in working capital , offset in small part by depreciation in excess of capital expenditures . accounts receivable at december 30 , 2017 totaled $ 2.9 million compared with $ 2.0 million at december 31 , 2016. days sales outstanding ( dsos ) , increased from 61 days at the end of 2016 to 70 days at the end of 2017. both of these statistics are consistent with historical patterns and do not represent a change in terms of an increase in the aging of receivables . inventories totaled $ 2.1 million at december 30 , 2017 , compared with inventories of $ 2.0 million at december 31 , 2016. the inventory turnover in 2016 was 5.6 times and 6.7 times for 2017 . ( both based on a 5 point inventory average ) . all consigned inventory is shipped under existing purchase orders and per customers ' requests . of the inventory of $ 2.1 million at december 30 , 2017 , $ 742 thousand was located at customers ' locations pursuant to consigned inventory agreements . of the total inventory of $ 2.0 million at december 31 , 2016 , $ 848 thousand was located at customers ' locations pursuant to consigned inventory agreements . ``` Suspicious Activity Report : annually the company reviews this unused material and establishes an obsolescence reserve for the amount it does not expect to use over the next three years . income taxes deferred tax assets and liabilities are based on the net tax effects of tax credits , operating loss carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes . the company considers many factors in assessing whether or not a valuation allowance for its deferred tax asset is warranted . on the positive side , the company considered such factors as its : history of taxable earnings ( three of the last four years had operating profits ) , global customer base consisting of large companies with significant resources , current products and their expected life , technological advantages , potential for price increases , trend of improved manufacturing efficiencies and the magnitude of the deferred tax asset compared with the company 's expectation of future earnings over the remaining life of the asset . on the negative side , the company considered such factors as : the global economic environment , the company 's ability to absorb a period of operating losses and negative cash flow and the potential for the technological breakthroughs and substitution of the company 's products by lower cost solutions . at december 30 , 2017 the company 's deferred tax asset and other temporary differences will require taxable income of approximately $ 11 million and reversals of existing temporary differences to fully utilize , assuming an effective corporate tax rate of 21 % based on the recently enacted tax cuts and jobs act . the company has concluded that it is more likely than not that its deferred tax asset will be fully realized . current projections of future taxable income , including the reversal of temporary differences , reflect the company 's belief that it has attractive growth opportunities and a favorable cost structure . these projections support the conclusion that the company will generate taxable income sufficient to utilize the losses before they expire . the company 's policy is to recognize interest and penalties related to income tax matters in income tax expense . as of december 30 , 2017 and december 31 , 2016 , the company had no accruals for interest or penalties related to income tax matters . the company did not have any uncertain tax positions at december 30 , 2017 or december 31 , 2016 which required accrual or disclosure . income tax effects related to share-based compensation that are in excess , or less than , grant-date fair value , less any proceeds received on exercise of stock prices , are recognized . results of operations results of operations for the year 2017 ( “ 2017 ” ) compared with the year 2016 ( “ 2016 ” ) : total revenue was $ 14.6 million in 2017 , a 5 % decrease compared with total revenue of $ 15.4 million in 2016. this decrease was due primarily to a reduction in the sales of armor products . there were no significant price changes during 2017 compared with 2016. gross margin in 2017 totaled $ 1.7 million or 11 % of sales . this compares with $ 2.2 million , or 14 % of sales , generated during 2016. this decline in margin was due primarily to lower revenues . selling , general and administrative ( sg & a ) expenses were $ 3.6 million during 2017 , an increase of 8 % compared with sg & a expenses of $ 3.3 million incurred during 2016. during 2017 the company incurred approximately $ 0.2 million in one-time legal and other costs associated with the annual proxy process and $ 0.2 million associated with the separation of an executive officer , offset by other cost reductions . the company generated interest of $ 11 thousand in 2017. this compares with interest and other income in 2016 of $ 51 thousand , $ 40 thousand of which was due to the sale of used equipment in excess of book value . primarily as a result of lower volume and higher sg & a spending , as cited above , the company incurred an operating loss of $ 2.0 million in 2017 , compared with an operating loss of $ 1.2 million last year . in 2017 the effective tax rate was 11 % and as a result the operating loss of $ 2.0 million led to a net loss of $ 1.7 million . this unusually low effective rate was due in large part to the impact of the tax cuts and jobs act which reduced the corporate statutory rate from 35 % to 21 % . the effective tax rate in 2016 was 60 % in which case the operating loss of $ 1.2 million resulted in a net loss of $ 0.5 million . significant fourth quarter activity in 2017 : revenues totaled $ 3.8 million versus $ 2.9 million in the last quarter of 2016 , representing a 32 % increase . this increase was entirely due higher shipments of baseplates . the impact of price changes was insignificant in the quarter compared with the same period in 2016. gross margin increased in the fourth quarter of 2017 compared with the fourth quarter of 2016 from $ 77 thousand to $ 563 thousand . this increase was directly associated with the increase in sales volume . there was no significant impact from price changes during the last quarter of 2017 compared with the last quarter of 2016. sg & a expenses increased from $ 773 thousand to $ 959 thousand . this increase was due to the fact that the company incurred $ 230 thousand of costs associated with the resignation of an executive officer . all other sg & a costs were down $ 44 thousand quarter on quarter . primarily story_separator_special_tag annually the company reviews this unused material and establishes an obsolescence reserve for the amount it does not expect to use over the next three years . income taxes deferred tax assets and liabilities are based on the net tax effects of tax credits , operating loss carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes . the company considers many factors in assessing whether or not a valuation allowance for its deferred tax asset is warranted . on the positive side , the company considered such factors as its : history of taxable earnings ( three of the last four years had operating profits ) , global customer base consisting of large companies with significant resources , current products and their expected life , technological advantages , potential for price increases , trend of improved manufacturing efficiencies and the magnitude of the deferred tax asset compared with the company 's expectation of future earnings over the remaining life of the asset . on the negative side , the company considered such factors as : the global economic environment , the company 's ability to absorb a period of operating losses and negative cash flow and the potential for the technological breakthroughs and substitution of the company 's products by lower cost solutions . at december 30 , 2017 the company 's deferred tax asset and other temporary differences will require taxable income of approximately $ 11 million and reversals of existing temporary differences to fully utilize , assuming an effective corporate tax rate of 21 % based on the recently enacted tax cuts and jobs act . the company has concluded that it is more likely than not that its deferred tax asset will be fully realized . current projections of future taxable income , including the reversal of temporary differences , reflect the company 's belief that it has attractive growth opportunities and a favorable cost structure . these projections support the conclusion that the company will generate taxable income sufficient to utilize the losses before they expire . the company 's policy is to recognize interest and penalties related to income tax matters in income tax expense . as of december 30 , 2017 and december 31 , 2016 , the company had no accruals for interest or penalties related to income tax matters . the company did not have any uncertain tax positions at december 30 , 2017 or december 31 , 2016 which required accrual or disclosure . income tax effects related to share-based compensation that are in excess , or less than , grant-date fair value , less any proceeds received on exercise of stock prices , are recognized . results of operations results of operations for the year 2017 ( “ 2017 ” ) compared with the year 2016 ( “ 2016 ” ) : total revenue was $ 14.6 million in 2017 , a 5 % decrease compared with total revenue of $ 15.4 million in 2016. this decrease was due primarily to a reduction in the sales of armor products . there were no significant price changes during 2017 compared with 2016. gross margin in 2017 totaled $ 1.7 million or 11 % of sales . this compares with $ 2.2 million , or 14 % of sales , generated during 2016. this decline in margin was due primarily to lower revenues . selling , general and administrative ( sg & a ) expenses were $ 3.6 million during 2017 , an increase of 8 % compared with sg & a expenses of $ 3.3 million incurred during 2016. during 2017 the company incurred approximately $ 0.2 million in one-time legal and other costs associated with the annual proxy process and $ 0.2 million associated with the separation of an executive officer , offset by other cost reductions . the company generated interest of $ 11 thousand in 2017. this compares with interest and other income in 2016 of $ 51 thousand , $ 40 thousand of which was due to the sale of used equipment in excess of book value . primarily as a result of lower volume and higher sg & a spending , as cited above , the company incurred an operating loss of $ 2.0 million in 2017 , compared with an operating loss of $ 1.2 million last year . in 2017 the effective tax rate was 11 % and as a result the operating loss of $ 2.0 million led to a net loss of $ 1.7 million . this unusually low effective rate was due in large part to the impact of the tax cuts and jobs act which reduced the corporate statutory rate from 35 % to 21 % . the effective tax rate in 2016 was 60 % in which case the operating loss of $ 1.2 million resulted in a net loss of $ 0.5 million . significant fourth quarter activity in 2017 : revenues totaled $ 3.8 million versus $ 2.9 million in the last quarter of 2016 , representing a 32 % increase . this increase was entirely due higher shipments of baseplates . the impact of price changes was insignificant in the quarter compared with the same period in 2016. gross margin increased in the fourth quarter of 2017 compared with the fourth quarter of 2016 from $ 77 thousand to $ 563 thousand . this increase was directly associated with the increase in sales volume . there was no significant impact from price changes during the last quarter of 2017 compared with the last quarter of 2016. sg & a expenses increased from $ 773 thousand to $ 959 thousand . this increase was due to the fact that the company incurred $ 230 thousand of costs associated with the resignation of an executive officer . all other sg & a costs were down $ 44 thousand quarter on quarter . primarily

because of the nature of the judgment and assumptions we make , actual results could differ from these judgments and estimates that could have a material impact on the carrying values of our assets and liabilities and our results of operations . management has reviewed and approved these critical accounting policies and has discussed these policies with the company 's audit committee . 35 table of contents allowance for loan losses the allowance for loan loss is management 's estimate of credit losses inherent in the loan portfolio . the allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings . loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed . subsequent recoveries , if any , are credited to the allowance . the allowance for loan losses is evaluated on a regular basis by management and is based upon management 's periodic review of the collectability of the loans in light of historical experience , the nature and volume of the loan portfolio , adverse situations that may affect the borrower 's ability to repay , estimated value of any underlying collateral and prevailing economic conditions . this evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available . we have an established process to determine the adequacy of the allowance for loan losses that assesses the losses inherent in our portfolio . while we attribute portions of the allowance to specific portfolio segments , the entire allowance is available to absorb credit losses inherent in the total loan portfolio . our process involves procedures to appropriately consider the unique risk characteristics of our commercial and consumer loan portfolio segments . for each portfolio segment , impairment is measured individually for each impaired loan . our allowance levels are influenced by loan volume , loan grade or delinquency status , historic loss experience and other economic conditions . the allowance consists of general and specific components . commercial loans are assessed for estimated losses by grading each loan using various risk factors identified through periodic reviews . we apply historic grade-specific loss factors to each loan class . in the development of our statistically derived loan grade loss factors , we observe historical losses over 20 quarters for each loan grade . these loss estimates are adjusted as appropriate based on additional analysis of external loss data or other risks identified from current economic conditions and credit quality trends . for consumer loans , we determine the allowance on a collective basis utilizing historical losses over 20 quarters to represent our best estimate of inherent loss . we pool loans , generally by loan class with similar risk characteristics . included in the general component of the allowance for loan losses for both portfolio segments is a margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating general losses in the portfolio . uncertainties and subjective issues such as changes in the lending policies and procedures , changes in the local/national economy , changes in volume or type of credits , changes in volume/severity or problem loans , quality of loan review and board of director oversight , concentrations of credit , and peer group comparisons are qualitative and environmental factors considered . the specific component relates to loans that are classified as impaired . for loans that are classified as impaired , an allowance is established when the value of the impaired loan is lower than the carrying value of that loan . a loan is considered impaired when , based on current information and events , it is probable that the company will be unable to collect the scheduled payments of principal or interest when due according to 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 interest payments when due . impairment is measured on a loan by loan basis for commercial and consumer loans by either the present value of expected future cash flows discounted at the loan 's effective interest rate , the loan 's obtainable market price , or the fair value of the collateral if the loan is collateral dependent . the specific component also includes an amount for the estimated impairment on commercial and consumer loans modified in a troubled debt restructuring ( “tdr” ) , whether on accrual or nonaccrual status . while management uses available information to recognize losses on loans , future additions to the allowance may be necessary based on changes in local economic conditions . in addition , regulatory agencies , as an integral part of their examination process , periodically review our allowance for loan losses . such agencies may require us to recognize additions to the allowances based on their judgments about information available to them at the time of their examination . fair valuation of financial instruments we use fair value measurements to record fair value adjustments to certain financial instruments and to determine fair value disclosures . additionally , we may be required to record other assets at fair value on a nonrecurring basis . these nonrecurring fair value adjustments typically involve application of lower-of-cost-or-market accounting or write-downs of individual assets . further , we include in the notes to the consolidated financial statements information about the extent to which fair value is used to measure assets and liabilities , the valuation methodologies used , and the related impact to income . additionally , for financial instruments not recorded at fair value , we disclose the estimate of their fair value . story_separator_special_tag million , or 1.35 % of gross loans , as of december 31 , 2014 , and $ 10.2 million , or 1.39 % of gross loans , as of december 31 , 2013 . the lesser provision expense of $ 3.2 million during 2015 relates primarily to the improved credit quality of our loan portfolio in 2015. during the twelve months ended december 31 , 2015 , our net charge-offs were $ 1.3 million , representing 0.14 % of average loans , and consisted of $ 1.5 million in loans charged-off , partially offset by $ 185,000 of recoveries on loans previously charged-off . in addition , our loan balances increased by $ 133.5 million while the amount of our nonperforming assets decreased by $ 865,000 and our classified assets declined . factors such as these are also considered in determining the amount of loan loss provision necessary to maintain our allowance for loan losses at an adequate level . we reported net charge-offs of $ 2.6 million and $ 2.4 million for the years ended december 31 , 2014 and 2013 , respectively , including recoveries of $ 251,000 and $ 125,000 in 2014 and 2013 , respectively . the net charge-offs of $ 2.6 million and $ 2.4 million during 2014 and 2013 , respectively , represented 0.33 % and 0.34 % of the average outstanding loan portfolios for the respective years . noninterest income the following tables set forth information related to our noninterest income . replace_table_token_6_th noninterest income was $ 8.4 million for the year ended december 31 , 2015 , a $ 2.6 million , or 45.6 % , increase over noninterest income of $ 5.8 million for the year ended december 31 , 2014. the increase in total noninterest income during 2015 resulted primarily from the following : ● loan and mortgage fee income increased $ 2.4 million , or 84.8 % , driven by a $ 2.3 million increase in mortgage origination fee income which totaled $ 5.0 million for the year . during 2015 , we continued the expansion of our mortgage operations , adding five additional team members to assist with originating , underwriting , closing and funding residential mortgage loans . ● other income increased by $ 162,000 , or 14.6 % , due primarily to increased fee income on our atm and debit cards , which is driven by an increase in transaction volume , and increased wire fees . the increase in noninterest income was partially offset by a $ 30,000 , or 3.3 % , decrease in service fees on deposit accounts which was primarily related to a $ 25,000 decrease in non-sufficient funds fee income . 41 table of contents noninterest income was $ 5.8 million for the year ended december 31 , 2014 , a $ 2.0 million increase over noninterest income of $ 3.8 million for the year ended december 31 , 2013. the increase in total noninterest income during 2014 resulted primarily from the following : ● loan and mortgage fee income increased $ 1.6 million , or 131.1 % , driven by a $ 1.6 million increase in mortgage origination fee income which totaled $ 2.7 million for the year . during 2014 , we continued the expansion our mortgage operations , adding five additional team members to assist with originating , underwriting , closing and funding residential mortgage loans . ● service fees on deposit accounts increased 5.0 % , or $ 44,000 , primarily related to increased service charge fee income on our transaction accounts . during 2014 , our transaction accounts , which include checking , money market , and savings accounts , grew by $ 108.7 million , or 26.3 % . ● during the second quarter of 2014 , we sold a portion of our investment securities and recognized a gain on sale $ 230,000 . ● other income increased by $ 76,000 , or 7.4 % , due primarily to increased fee income on our atm and debit cards which is driven by an increase in transaction volume . in accordance with the requirement set forth under the dodd-frank act , in june 2011 , the federal reserve approved a final rule which caps an issuer 's base interchange fee at 21 cents per transaction and allows an additional 5 basis point charge per transaction to help cover fraud losses . although the rule does not apply to institutions with less than $ 10 billion in assets , such as our bank , there is concern that the price controls may harm community banks , which could be pressured by the marketplace to lower their own interchange rates . our atm/debit card fee income is included in other noninterest income and was $ 785,000 , $ 667,000 , and $ 560,000 for the years ended december 31 , 2015 , 2014 , and 2013 , respectively , the majority of which related to interchange fee income . noninterest expenses the following tables set forth information related to our noninterest expenses . replace_table_token_7_th noninterest expense was $ 28.2 million for the year ended december 31 , 2015 , a $ 3.3 million , or 13.3 % , increase from noninterest expense of $ 24.9 million for 2014. the increase in total noninterest expenses resulted primarily from the following : ● compensation and benefits expense increased $ 3.0 million , or 21.4 % , during 2015 relating primarily to increases in base and incentive compensation and benefits expenses . base compensation expense increased by $ 1.8 million driven by the cost of 13 additional employees , five of whom were hired to assist with our expanded mortgage capabilities with the remainder being hired to support our growth in loans and deposits , combined with annual salary increases . incentive compensation , which is based on certain targeted financial performance goals met by management , increased by $ 200,000 , while benefits expenses increased $ 1.0 million during

liquidity and capital resources liquidity represents the ability of a company to convert assets into cash or cash equivalents without significant loss , and the ability to raise additional funds by increasing liabilities . liquidity management involves monitoring our sources and uses of funds in order to meet our day-to-day cash flow requirements while maximizing profits . liquidity management is made more complicated because different balance sheet components are subject to varying degrees of management control . for example , the timing of maturities of our investment portfolio is fairly predictable and subject to a high degree of control at the time investment decisions are made . however , net deposit inflows and outflows are far less predictable and are not subject to the same degree of control . at december 31 , 2015 and 2014 , our liquid assets amounted to $ 62.9 million and $ 41.3 million , or 5.2 % and 4.0 % of total assets , respectively . our investment securities at december 31 , 2015 and 2014 amounted to $ 95.5 million and $ 61.5 million , or 7.8 % and 6.0 % of total assets , respectively . investment securities traditionally provide a secondary source of liquidity since they can be converted into cash in a timely manner . however , approximately 24 % of these securities are pledged against outstanding debt . therefore , the related debt would need to be repaid prior to the securities being sold in order for these securities to be converted to cash . in addition , approximately 12 % of our investment securities are pledged to secure client deposits . our ability to maintain and expand our deposit base and borrowing capabilities serves as our primary source of liquidity . we plan to meet our future cash needs through the liquidation of temporary investments , the generation of deposits , and from additional borrowings . in addition , we will receive cash upon the maturity and sale of loans and the maturity of investment securities .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources liquidity represents the ability of a company to convert assets into cash or cash equivalents without significant loss , and the ability to raise additional funds by increasing liabilities . liquidity management involves monitoring our sources and uses of funds in order to meet our day-to-day cash flow requirements while maximizing profits . liquidity management is made more complicated because different balance sheet components are subject to varying degrees of management control . for example , the timing of maturities of our investment portfolio is fairly predictable and subject to a high degree of control at the time investment decisions are made . however , net deposit inflows and outflows are far less predictable and are not subject to the same degree of control . at december 31 , 2015 and 2014 , our liquid assets amounted to $ 62.9 million and $ 41.3 million , or 5.2 % and 4.0 % of total assets , respectively . our investment securities at december 31 , 2015 and 2014 amounted to $ 95.5 million and $ 61.5 million , or 7.8 % and 6.0 % of total assets , respectively . investment securities traditionally provide a secondary source of liquidity since they can be converted into cash in a timely manner . however , approximately 24 % of these securities are pledged against outstanding debt . therefore , the related debt would need to be repaid prior to the securities being sold in order for these securities to be converted to cash . in addition , approximately 12 % of our investment securities are pledged to secure client deposits . our ability to maintain and expand our deposit base and borrowing capabilities serves as our primary source of liquidity . we plan to meet our future cash needs through the liquidation of temporary investments , the generation of deposits , and from additional borrowings . in addition , we will receive cash upon the maturity and sale of loans and the maturity of investment securities . ``` Suspicious Activity Report : because of the nature of the judgment and assumptions we make , actual results could differ from these judgments and estimates that could have a material impact on the carrying values of our assets and liabilities and our results of operations . management has reviewed and approved these critical accounting policies and has discussed these policies with the company 's audit committee . 35 table of contents allowance for loan losses the allowance for loan loss is management 's estimate of credit losses inherent in the loan portfolio . the allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings . loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed . subsequent recoveries , if any , are credited to the allowance . the allowance for loan losses is evaluated on a regular basis by management and is based upon management 's periodic review of the collectability of the loans in light of historical experience , the nature and volume of the loan portfolio , adverse situations that may affect the borrower 's ability to repay , estimated value of any underlying collateral and prevailing economic conditions . this evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available . we have an established process to determine the adequacy of the allowance for loan losses that assesses the losses inherent in our portfolio . while we attribute portions of the allowance to specific portfolio segments , the entire allowance is available to absorb credit losses inherent in the total loan portfolio . our process involves procedures to appropriately consider the unique risk characteristics of our commercial and consumer loan portfolio segments . for each portfolio segment , impairment is measured individually for each impaired loan . our allowance levels are influenced by loan volume , loan grade or delinquency status , historic loss experience and other economic conditions . the allowance consists of general and specific components . commercial loans are assessed for estimated losses by grading each loan using various risk factors identified through periodic reviews . we apply historic grade-specific loss factors to each loan class . in the development of our statistically derived loan grade loss factors , we observe historical losses over 20 quarters for each loan grade . these loss estimates are adjusted as appropriate based on additional analysis of external loss data or other risks identified from current economic conditions and credit quality trends . for consumer loans , we determine the allowance on a collective basis utilizing historical losses over 20 quarters to represent our best estimate of inherent loss . we pool loans , generally by loan class with similar risk characteristics . included in the general component of the allowance for loan losses for both portfolio segments is a margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating general losses in the portfolio . uncertainties and subjective issues such as changes in the lending policies and procedures , changes in the local/national economy , changes in volume or type of credits , changes in volume/severity or problem loans , quality of loan review and board of director oversight , concentrations of credit , and peer group comparisons are qualitative and environmental factors considered . the specific component relates to loans that are classified as impaired . for loans that are classified as impaired , an allowance is established when the value of the impaired loan is lower than the carrying value of that loan . a loan is considered impaired when , based on current information and events , it is probable that the company will be unable to collect the scheduled payments of principal or interest when due according to 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 interest payments when due . impairment is measured on a loan by loan basis for commercial and consumer loans by either the present value of expected future cash flows discounted at the loan 's effective interest rate , the loan 's obtainable market price , or the fair value of the collateral if the loan is collateral dependent . the specific component also includes an amount for the estimated impairment on commercial and consumer loans modified in a troubled debt restructuring ( “tdr” ) , whether on accrual or nonaccrual status . while management uses available information to recognize losses on loans , future additions to the allowance may be necessary based on changes in local economic conditions . in addition , regulatory agencies , as an integral part of their examination process , periodically review our allowance for loan losses . such agencies may require us to recognize additions to the allowances based on their judgments about information available to them at the time of their examination . fair valuation of financial instruments we use fair value measurements to record fair value adjustments to certain financial instruments and to determine fair value disclosures . additionally , we may be required to record other assets at fair value on a nonrecurring basis . these nonrecurring fair value adjustments typically involve application of lower-of-cost-or-market accounting or write-downs of individual assets . further , we include in the notes to the consolidated financial statements information about the extent to which fair value is used to measure assets and liabilities , the valuation methodologies used , and the related impact to income . additionally , for financial instruments not recorded at fair value , we disclose the estimate of their fair value . story_separator_special_tag million , or 1.35 % of gross loans , as of december 31 , 2014 , and $ 10.2 million , or 1.39 % of gross loans , as of december 31 , 2013 . the lesser provision expense of $ 3.2 million during 2015 relates primarily to the improved credit quality of our loan portfolio in 2015. during the twelve months ended december 31 , 2015 , our net charge-offs were $ 1.3 million , representing 0.14 % of average loans , and consisted of $ 1.5 million in loans charged-off , partially offset by $ 185,000 of recoveries on loans previously charged-off . in addition , our loan balances increased by $ 133.5 million while the amount of our nonperforming assets decreased by $ 865,000 and our classified assets declined . factors such as these are also considered in determining the amount of loan loss provision necessary to maintain our allowance for loan losses at an adequate level . we reported net charge-offs of $ 2.6 million and $ 2.4 million for the years ended december 31 , 2014 and 2013 , respectively , including recoveries of $ 251,000 and $ 125,000 in 2014 and 2013 , respectively . the net charge-offs of $ 2.6 million and $ 2.4 million during 2014 and 2013 , respectively , represented 0.33 % and 0.34 % of the average outstanding loan portfolios for the respective years . noninterest income the following tables set forth information related to our noninterest income . replace_table_token_6_th noninterest income was $ 8.4 million for the year ended december 31 , 2015 , a $ 2.6 million , or 45.6 % , increase over noninterest income of $ 5.8 million for the year ended december 31 , 2014. the increase in total noninterest income during 2015 resulted primarily from the following : ● loan and mortgage fee income increased $ 2.4 million , or 84.8 % , driven by a $ 2.3 million increase in mortgage origination fee income which totaled $ 5.0 million for the year . during 2015 , we continued the expansion of our mortgage operations , adding five additional team members to assist with originating , underwriting , closing and funding residential mortgage loans . ● other income increased by $ 162,000 , or 14.6 % , due primarily to increased fee income on our atm and debit cards , which is driven by an increase in transaction volume , and increased wire fees . the increase in noninterest income was partially offset by a $ 30,000 , or 3.3 % , decrease in service fees on deposit accounts which was primarily related to a $ 25,000 decrease in non-sufficient funds fee income . 41 table of contents noninterest income was $ 5.8 million for the year ended december 31 , 2014 , a $ 2.0 million increase over noninterest income of $ 3.8 million for the year ended december 31 , 2013. the increase in total noninterest income during 2014 resulted primarily from the following : ● loan and mortgage fee income increased $ 1.6 million , or 131.1 % , driven by a $ 1.6 million increase in mortgage origination fee income which totaled $ 2.7 million for the year . during 2014 , we continued the expansion our mortgage operations , adding five additional team members to assist with originating , underwriting , closing and funding residential mortgage loans . ● service fees on deposit accounts increased 5.0 % , or $ 44,000 , primarily related to increased service charge fee income on our transaction accounts . during 2014 , our transaction accounts , which include checking , money market , and savings accounts , grew by $ 108.7 million , or 26.3 % . ● during the second quarter of 2014 , we sold a portion of our investment securities and recognized a gain on sale $ 230,000 . ● other income increased by $ 76,000 , or 7.4 % , due primarily to increased fee income on our atm and debit cards which is driven by an increase in transaction volume . in accordance with the requirement set forth under the dodd-frank act , in june 2011 , the federal reserve approved a final rule which caps an issuer 's base interchange fee at 21 cents per transaction and allows an additional 5 basis point charge per transaction to help cover fraud losses . although the rule does not apply to institutions with less than $ 10 billion in assets , such as our bank , there is concern that the price controls may harm community banks , which could be pressured by the marketplace to lower their own interchange rates . our atm/debit card fee income is included in other noninterest income and was $ 785,000 , $ 667,000 , and $ 560,000 for the years ended december 31 , 2015 , 2014 , and 2013 , respectively , the majority of which related to interchange fee income . noninterest expenses the following tables set forth information related to our noninterest expenses . replace_table_token_7_th noninterest expense was $ 28.2 million for the year ended december 31 , 2015 , a $ 3.3 million , or 13.3 % , increase from noninterest expense of $ 24.9 million for 2014. the increase in total noninterest expenses resulted primarily from the following : ● compensation and benefits expense increased $ 3.0 million , or 21.4 % , during 2015 relating primarily to increases in base and incentive compensation and benefits expenses . base compensation expense increased by $ 1.8 million driven by the cost of 13 additional employees , five of whom were hired to assist with our expanded mortgage capabilities with the remainder being hired to support our growth in loans and deposits , combined with annual salary increases . incentive compensation , which is based on certain targeted financial performance goals met by management , increased by $ 200,000 , while benefits expenses increased $ 1.0 million during

gaylord rockies joint venture as more fully discussed in note 4 , “ investment in gaylord rockies joint venture , ” to the consolidated financial statements included herein , on december 31 , 2018 , we completed our purchase of additional interests in the gaylord rockies joint venture , increasing our ownership to 61.2 % . in addition , on july 31 , 2019 , we increased our ownership in the gaylord rockies joint venture to 62.1 % . our management has concluded that the company is the primary beneficiary of this variable interest entity ( “ vie ” ) and the financial position and results of operations of the vie have been consolidated in the accompanying consolidated financial statements included herein , beginning on december 31 , 2018 with respect to the balance sheet and january 1 , 2019 with respect to statements of operations and comprehensive income and statements of cash flows . gaylord rockies opened on a limited basis in december 2018 and on a fully operational basis in first quarter 2019 and is managed by marriott . gaylord palms expansion in 2018 , we began construction of a $ 158 million expansion of gaylord palms , which will include an additional 303 guest rooms and 90,000 square feet of meeting space , an expanded resort pool and events lawn , and a new multi-level parking structure . the expansion is expected to be completed in summer 2021. gaylord rockies expansion in february 2020 , we and our joint venture partner in the gaylord rockies joint venture announced an $ 80 million expansion of gaylord rockies , which will include an additional 317 guest rooms . the expansion is expected to begin in the second quarter of 2020 and to be completed in early 2022 . 39 soundwaves at gaylord opryland in december 2018 , we opened the indoor portion of a $ 90 million investment to create a luxury indoor/outdoor waterpark adjacent to gaylord opryland , soundwaves . the project includes approximately 111,000 square feet of indoor water attractions and activities over three levels and approximately 106,000 square feet of outdoor water amenities . the project includes areas for adults , children and families , as well as dining options and bars . the outdoor portion of the project opened in second quarter 2019. circle in 2019 , we acquired a 50 % equity interest in circle for an initial capital contribution of $ 2.0 million , and we contributed an additional $ 2.0 million in december 2019. the joint venture agreement requires us to contribute up to an additional $ 11.0 million through december 31 , 2021. circle launched its broadcast network on january 1 , 2020 , with sixteen original shows and two major distribution partnerships that broadcast circle in markets accessible to more than 50 % of u.s. television households . potential acquisition of block 21 in december 2019 , we entered into an agreement ( the “ block 21 agreement ” ) to purchase block 21 , a mixed-use entertainment , lodging , office and retail complex located in austin , texas , for $ 275 million , which includes the assumption of approximately $ 141 million of existing mortgage debt . block 21 is the home of the acl live at the moody theater , a 2,750-seat entertainment venue that serves as the filming location for the austin city limits television series . the block 21 complex also includes the 251-room w austin hotel , the 350-seat 3ten at acl live club and approximately 53,000 square feet of class a commercial space . we paid a nonrefundable deposit of $ 15 million upon entry into the block 21 agreement , and the acquisition is expected to close at the end of the first quarter or in early second quarter 2020 , subject to customary closing conditions including , but not limited to , consent to our assumption of the existing mortgage loan by the loan servicer and the consent of the hotel property manager , an affiliate of marriott , to our assignment and assumption of the existing hotel management agreement . we intend to fund the acquisition with a portion of the proceeds from the equity offering discussed below . equity offering in december 2019 , we completed an underwritten public offering of approximately 3.5 million shares of our common stock , par value $ 0.01 per share , at a price to the public of $ 85.60 per share . our net proceeds , after deducting underwriting discounts and commissions and other expenses paid by us , were approximately $ 283 million . we intend to use a portion of the net proceeds to fund the approximately $ 134 million cash portion of the consideration for the acquisition of block 21 and the related fees and expenses of the acquisition . we intend to use the remaining net proceeds , or all of the net proceeds if the block 21 acquisition is not consummated , for general corporate purposes , including future acquisitions or investments and the repayment of any indebtedness outstanding under our revolving credit facility . refinancing activity in july 2019 , the gaylord rockies joint venture refinanced its previous $ 500 million construction loan and $ 39 million mezzanine loan , which were scheduled to mature in december 2019 , by entering into an $ 800 million secured term loan facility , with an option for an additional $ 80 million of borrowing capacity should the gaylord rockies joint venture pursue a future expansion of gaylord rockies , which the joint venture announced in february 2020 that it intends to pursue . the new term loan facility matures in 2023. net proceeds , after repayment of the construction and mezzanine loans and the payment of expenses , were distributed to the owners of the gaylord rockies joint venture pro rata in proportion to their interests therein . story_separator_special_tag additionally , an incentive fee is based on the profitability of our gaylord hotels properties calculated on a pooled basis . the gaylord rockies ' management agreement with marriott requires gaylord rockies to pay a base management fee of 3 % of gross revenues for each fiscal year or portion thereof , as well as an incentive management fee based on the profitability of the hotel . we incurred $ 30.9 million , $ 22.7 million and $ 21.4 million in total base management fees to marriott related to our hospitality segment during 2019 , 2018 and 2017 , 46 respectively . we also incurred $ 11.8 million , $ 11.3 million and $ 5.5 million related to incentive management fees for our hospitality segment during 2019 , 2018 and 2017 , respectively . management fees are presented throughout this annual report on form 10-k net of the amortization of the deferred management rights proceeds discussed in note 6 , “ deferred management rights proceeds , ” to the consolidated financial statements included herein . hospitality segment depreciation and amortization expense increased in 2019 , as compared to 2018 , primarily due to depreciation and amortization at gaylord rockies , which is significantly higher than our other gaylord hotels properties due to amortization related to intangible assets that were recognized as part of our increased ownership as of december 31 , 2018 , as well as higher fixed asset balances than the other hotels . property-level results . the following presents property-level financial results for our gaylord hotels properties for the years ended december 31 , 2019 , 2018 and 2017 and for gaylord rockies for the year ended december 31 , 2019 : gaylord opryland results . the results of gaylord opryland for the years ended december 31 , 2019 , 2018 and 2017 are as follows ( in thousands , except percentages and performance metrics ) : replace_table_token_10_th ( 1 ) gaylord opryland operating expenses do not include preopening costs of $ 0.1 million and $ 0.9 million in 2019 and 2018 , respectively . see the discussion of preopening costs below . rooms revenue and revpar increased at gaylord opryland during 2019 , as compared to 2018 , as a result of an increase in transient occupancy and an increase in adr for both group and transient rates . rooms revenue and revpar were negatively impacted in 2019 by a rooms renovation project , which resulted in approximately 31,500 room nights out of service during 2019. the rooms renovation project was completed in the fourth quarter of 2019. rooms expenses increased during 2019 , as compared to 2018 , primarily due to increased variable costs associated with the increase in occupancy . the increase in food and beverage revenue at gaylord opryland during 2019 , as compared to 2018 , was primarily due to increased food and beverage outlet revenue , including new food and beverage outlets associated with soundwaves . food and beverage expenses increased in 2019 , as compared to 2018 , primarily due to increased employment costs and increased variable costs associated with the increase in revenue . other hotel revenue increased at gaylord opryland during 2019 , as compared to 2018 , due primarily to revenues from soundwaves , as well as an increase in attrition and cancellation fee collections . other hotel expenses increased in 2019 , as compared to 2018 , due primarily to additional operating expense for soundwaves . 47 management fees , net and depreciation and amortization remained stable at gaylord opryland during 2019 , as compared to 2018. gaylord palms results . the results of gaylord palms for the years ended december 31 , 2019 , 2018 and 2017 are as follows ( in thousands , except percentages and performance metrics ) : replace_table_token_11_th ( 1 ) gaylord palms operating expenses do not include preopening costs of $ 0.6 million in 2019. see the discussion of preopening costs below . rooms revenue and revpar increased at gaylord palms during 2019 , as compared to 2018 , due primarily to an increase in adr for both group and transient rates . rooms expenses decreased during 2019 , as compared to 2018 , due primarily to a decrease in group commissions . the increase in food and beverage revenue at gaylord palms during 2019 , as compared to 2018 , was primarily due to an increase in catering revenue . food and beverage expenses increased in 2019 , as compared to 2018 , due primarily to an increase in variable expenses related to the increase in revenue . other hotel revenue at gaylord palms increased during 2019 , as compared to 2018 , primarily due to increased attrition and cancellation fee collections , as well as an increase in resort fees driven by an increase in the resort fee rate . other hotel expenses increased during 2019 , as compared to 2018 , due primarily to an increase in sales and marketing costs . management fees , net increased at gaylord palms during 2019 , as compared to 2018 , due primarily to an increase in incentive management fees . depreciation and amortization remained stable during 2019 , as compared to 2018 . 48 gaylord texan results . the results of gaylord texan for the years ended december 31 , 2019 , 2018 and 2017 are as follows ( in thousands , except percentages and performance metrics ) : replace_table_token_12_th ( 1 ) gaylord texan operating expenses do not include preopening costs of $ 2.0 million and $ 0.1 million in 2018 and 2017 , respectively related to an expansion of the guest rooms and convention space at gaylord texan , which opened in the second quarter of 2018. rooms revenue and revpar increased at gaylord texan during 2019 , as compared to 2018 , due primarily to an increase in occupancy for both group and transient business . the 2019 year was also positively impacted by additional room availability

liquidity and capital resources cash flows from operating activities . cash flow from operating activities is the principal source of cash used to fund our operating expenses , interest payments on debt , maintenance capital expenditures , and dividends to stockholders . during 2019 , our net cash flows provided by our operating activities were $ 354.7 million , reflecting primarily our income before depreciation expense , amortization expense and other non-cash charges of approximately $ 376.2 million , partially offset by unfavorable changes in working capital of approximately $ 21.6 million . the unfavorable changes in working capital primarily resulted from a decrease in accounts payable and accrued liabilities primarily attributable to the timing of payments . during 2018 , our net cash flows provided by our operating activities were $ 321.9 million , reflecting primarily our income before depreciation expense , amortization expense , impairment charges , income from unconsolidated joint ventures and other non-cash charges of approximately $ 309.8 million and favorable changes in working capital of approximately $ 12.2 million . the favorable changes in working capital primarily resulted from an increase in accounts payable and accrued liabilities due to the timing of payments , partially offset by an increase in accounts receivable due to the timing of collections . cash flows from investing activities . during 2019 , our primary use of funds for investing activities was the purchase of property and equipment of $ 152.5 million and consisted primarily of the expansion of gaylord palms , a rooms renovation at gaylord opryland , construction of ole red orlando , construction of soundwaves , and ongoing maintenance for our existing properties . we also paid a $ 15.0 million earnest money deposit for the potential acquisition of block 21. these uses of cash were partially offset by the receipt of $ 13.2 million of principal received from the governmental bonds held by gaylord national and the redemption of the governmental bonds previously held by the gaylord rockies joint venture , as further described in note 3 , “ notes receivable , ” to the consolidated financial statements included herein .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources cash flows from operating activities . cash flow from operating activities is the principal source of cash used to fund our operating expenses , interest payments on debt , maintenance capital expenditures , and dividends to stockholders . during 2019 , our net cash flows provided by our operating activities were $ 354.7 million , reflecting primarily our income before depreciation expense , amortization expense and other non-cash charges of approximately $ 376.2 million , partially offset by unfavorable changes in working capital of approximately $ 21.6 million . the unfavorable changes in working capital primarily resulted from a decrease in accounts payable and accrued liabilities primarily attributable to the timing of payments . during 2018 , our net cash flows provided by our operating activities were $ 321.9 million , reflecting primarily our income before depreciation expense , amortization expense , impairment charges , income from unconsolidated joint ventures and other non-cash charges of approximately $ 309.8 million and favorable changes in working capital of approximately $ 12.2 million . the favorable changes in working capital primarily resulted from an increase in accounts payable and accrued liabilities due to the timing of payments , partially offset by an increase in accounts receivable due to the timing of collections . cash flows from investing activities . during 2019 , our primary use of funds for investing activities was the purchase of property and equipment of $ 152.5 million and consisted primarily of the expansion of gaylord palms , a rooms renovation at gaylord opryland , construction of ole red orlando , construction of soundwaves , and ongoing maintenance for our existing properties . we also paid a $ 15.0 million earnest money deposit for the potential acquisition of block 21. these uses of cash were partially offset by the receipt of $ 13.2 million of principal received from the governmental bonds held by gaylord national and the redemption of the governmental bonds previously held by the gaylord rockies joint venture , as further described in note 3 , “ notes receivable , ” to the consolidated financial statements included herein . ``` Suspicious Activity Report : gaylord rockies joint venture as more fully discussed in note 4 , “ investment in gaylord rockies joint venture , ” to the consolidated financial statements included herein , on december 31 , 2018 , we completed our purchase of additional interests in the gaylord rockies joint venture , increasing our ownership to 61.2 % . in addition , on july 31 , 2019 , we increased our ownership in the gaylord rockies joint venture to 62.1 % . our management has concluded that the company is the primary beneficiary of this variable interest entity ( “ vie ” ) and the financial position and results of operations of the vie have been consolidated in the accompanying consolidated financial statements included herein , beginning on december 31 , 2018 with respect to the balance sheet and january 1 , 2019 with respect to statements of operations and comprehensive income and statements of cash flows . gaylord rockies opened on a limited basis in december 2018 and on a fully operational basis in first quarter 2019 and is managed by marriott . gaylord palms expansion in 2018 , we began construction of a $ 158 million expansion of gaylord palms , which will include an additional 303 guest rooms and 90,000 square feet of meeting space , an expanded resort pool and events lawn , and a new multi-level parking structure . the expansion is expected to be completed in summer 2021. gaylord rockies expansion in february 2020 , we and our joint venture partner in the gaylord rockies joint venture announced an $ 80 million expansion of gaylord rockies , which will include an additional 317 guest rooms . the expansion is expected to begin in the second quarter of 2020 and to be completed in early 2022 . 39 soundwaves at gaylord opryland in december 2018 , we opened the indoor portion of a $ 90 million investment to create a luxury indoor/outdoor waterpark adjacent to gaylord opryland , soundwaves . the project includes approximately 111,000 square feet of indoor water attractions and activities over three levels and approximately 106,000 square feet of outdoor water amenities . the project includes areas for adults , children and families , as well as dining options and bars . the outdoor portion of the project opened in second quarter 2019. circle in 2019 , we acquired a 50 % equity interest in circle for an initial capital contribution of $ 2.0 million , and we contributed an additional $ 2.0 million in december 2019. the joint venture agreement requires us to contribute up to an additional $ 11.0 million through december 31 , 2021. circle launched its broadcast network on january 1 , 2020 , with sixteen original shows and two major distribution partnerships that broadcast circle in markets accessible to more than 50 % of u.s. television households . potential acquisition of block 21 in december 2019 , we entered into an agreement ( the “ block 21 agreement ” ) to purchase block 21 , a mixed-use entertainment , lodging , office and retail complex located in austin , texas , for $ 275 million , which includes the assumption of approximately $ 141 million of existing mortgage debt . block 21 is the home of the acl live at the moody theater , a 2,750-seat entertainment venue that serves as the filming location for the austin city limits television series . the block 21 complex also includes the 251-room w austin hotel , the 350-seat 3ten at acl live club and approximately 53,000 square feet of class a commercial space . we paid a nonrefundable deposit of $ 15 million upon entry into the block 21 agreement , and the acquisition is expected to close at the end of the first quarter or in early second quarter 2020 , subject to customary closing conditions including , but not limited to , consent to our assumption of the existing mortgage loan by the loan servicer and the consent of the hotel property manager , an affiliate of marriott , to our assignment and assumption of the existing hotel management agreement . we intend to fund the acquisition with a portion of the proceeds from the equity offering discussed below . equity offering in december 2019 , we completed an underwritten public offering of approximately 3.5 million shares of our common stock , par value $ 0.01 per share , at a price to the public of $ 85.60 per share . our net proceeds , after deducting underwriting discounts and commissions and other expenses paid by us , were approximately $ 283 million . we intend to use a portion of the net proceeds to fund the approximately $ 134 million cash portion of the consideration for the acquisition of block 21 and the related fees and expenses of the acquisition . we intend to use the remaining net proceeds , or all of the net proceeds if the block 21 acquisition is not consummated , for general corporate purposes , including future acquisitions or investments and the repayment of any indebtedness outstanding under our revolving credit facility . refinancing activity in july 2019 , the gaylord rockies joint venture refinanced its previous $ 500 million construction loan and $ 39 million mezzanine loan , which were scheduled to mature in december 2019 , by entering into an $ 800 million secured term loan facility , with an option for an additional $ 80 million of borrowing capacity should the gaylord rockies joint venture pursue a future expansion of gaylord rockies , which the joint venture announced in february 2020 that it intends to pursue . the new term loan facility matures in 2023. net proceeds , after repayment of the construction and mezzanine loans and the payment of expenses , were distributed to the owners of the gaylord rockies joint venture pro rata in proportion to their interests therein . story_separator_special_tag additionally , an incentive fee is based on the profitability of our gaylord hotels properties calculated on a pooled basis . the gaylord rockies ' management agreement with marriott requires gaylord rockies to pay a base management fee of 3 % of gross revenues for each fiscal year or portion thereof , as well as an incentive management fee based on the profitability of the hotel . we incurred $ 30.9 million , $ 22.7 million and $ 21.4 million in total base management fees to marriott related to our hospitality segment during 2019 , 2018 and 2017 , 46 respectively . we also incurred $ 11.8 million , $ 11.3 million and $ 5.5 million related to incentive management fees for our hospitality segment during 2019 , 2018 and 2017 , respectively . management fees are presented throughout this annual report on form 10-k net of the amortization of the deferred management rights proceeds discussed in note 6 , “ deferred management rights proceeds , ” to the consolidated financial statements included herein . hospitality segment depreciation and amortization expense increased in 2019 , as compared to 2018 , primarily due to depreciation and amortization at gaylord rockies , which is significantly higher than our other gaylord hotels properties due to amortization related to intangible assets that were recognized as part of our increased ownership as of december 31 , 2018 , as well as higher fixed asset balances than the other hotels . property-level results . the following presents property-level financial results for our gaylord hotels properties for the years ended december 31 , 2019 , 2018 and 2017 and for gaylord rockies for the year ended december 31 , 2019 : gaylord opryland results . the results of gaylord opryland for the years ended december 31 , 2019 , 2018 and 2017 are as follows ( in thousands , except percentages and performance metrics ) : replace_table_token_10_th ( 1 ) gaylord opryland operating expenses do not include preopening costs of $ 0.1 million and $ 0.9 million in 2019 and 2018 , respectively . see the discussion of preopening costs below . rooms revenue and revpar increased at gaylord opryland during 2019 , as compared to 2018 , as a result of an increase in transient occupancy and an increase in adr for both group and transient rates . rooms revenue and revpar were negatively impacted in 2019 by a rooms renovation project , which resulted in approximately 31,500 room nights out of service during 2019. the rooms renovation project was completed in the fourth quarter of 2019. rooms expenses increased during 2019 , as compared to 2018 , primarily due to increased variable costs associated with the increase in occupancy . the increase in food and beverage revenue at gaylord opryland during 2019 , as compared to 2018 , was primarily due to increased food and beverage outlet revenue , including new food and beverage outlets associated with soundwaves . food and beverage expenses increased in 2019 , as compared to 2018 , primarily due to increased employment costs and increased variable costs associated with the increase in revenue . other hotel revenue increased at gaylord opryland during 2019 , as compared to 2018 , due primarily to revenues from soundwaves , as well as an increase in attrition and cancellation fee collections . other hotel expenses increased in 2019 , as compared to 2018 , due primarily to additional operating expense for soundwaves . 47 management fees , net and depreciation and amortization remained stable at gaylord opryland during 2019 , as compared to 2018. gaylord palms results . the results of gaylord palms for the years ended december 31 , 2019 , 2018 and 2017 are as follows ( in thousands , except percentages and performance metrics ) : replace_table_token_11_th ( 1 ) gaylord palms operating expenses do not include preopening costs of $ 0.6 million in 2019. see the discussion of preopening costs below . rooms revenue and revpar increased at gaylord palms during 2019 , as compared to 2018 , due primarily to an increase in adr for both group and transient rates . rooms expenses decreased during 2019 , as compared to 2018 , due primarily to a decrease in group commissions . the increase in food and beverage revenue at gaylord palms during 2019 , as compared to 2018 , was primarily due to an increase in catering revenue . food and beverage expenses increased in 2019 , as compared to 2018 , due primarily to an increase in variable expenses related to the increase in revenue . other hotel revenue at gaylord palms increased during 2019 , as compared to 2018 , primarily due to increased attrition and cancellation fee collections , as well as an increase in resort fees driven by an increase in the resort fee rate . other hotel expenses increased during 2019 , as compared to 2018 , due primarily to an increase in sales and marketing costs . management fees , net increased at gaylord palms during 2019 , as compared to 2018 , due primarily to an increase in incentive management fees . depreciation and amortization remained stable during 2019 , as compared to 2018 . 48 gaylord texan results . the results of gaylord texan for the years ended december 31 , 2019 , 2018 and 2017 are as follows ( in thousands , except percentages and performance metrics ) : replace_table_token_12_th ( 1 ) gaylord texan operating expenses do not include preopening costs of $ 2.0 million and $ 0.1 million in 2018 and 2017 , respectively related to an expansion of the guest rooms and convention space at gaylord texan , which opened in the second quarter of 2018. rooms revenue and revpar increased at gaylord texan during 2019 , as compared to 2018 , due primarily to an increase in occupancy for both group and transient business . the 2019 year was also positively impacted by additional room availability

as of march 31 , 2020 , we provided fixed broadband services to approximately 590,000 u.s. subscribers ( excluding subscribers whose service would have ordinarily been terminated in the absence of the federal fcc pledge and similar state programs we are currently participating 46 in to ensur e our customers have access to connectivity during the covid-19 pandemic ) . for the three months ended march 31 , 2020 , arpu was $ 9 3 . 0 6 . in-flight services , which provide industry-leading ifc , w-ife and aviation software services . as of march 31 , 2020 , we provided ifc services to 1,390 commercial aircraft in service , with ifc services anticipated to be activated on approximately 750 additional commercial aircraft under our existing customer agreements with commercial airlines . the number of commercial aircraft in service may be negatively impacted in future quarters due to the grounding of installed aircraft as a result of the impact of the covid-19 pandemic on global air traffic and the airline industry . the timing of installation and entry into service for additional aircraft under existing customer agreements may also be delayed due to covid-19 impacts . there can be no assurance that anticipated ifc services will be activated on all such additional commercial aircraft . community internet services , which offer innovative , affordable , satellite-based connectivity in communities with poor or no other means of internet access . the services help foster digital inclusion by enabling millions of people to connect to affordable high-quality internet services via a centralized community hotspot connected to the internet via satellite . our community internet services are currently offered primarily in mexico , and we expect to expand these services to other countries in the future . other mobile broadband services , which include high-speed , satellite-based internet services to seagoing vessels ( such as energy offshore vessels , cruise ships , consumer ferries and yachts ) , as well as l-band managed services enabling real-time machine-to-machine ( m2m ) position tracking , management of remote assets and operations , and visibility into critical areas of the supply chain . commercial networks our commercial networks segment develops and sells a wide array of advanced satellite and wireless products , antenna systems and terminal solutions that support or enable the provision of high-speed fixed and mobile broadband services . the primary products , systems , solutions and services offered by our commercial networks segment are comprised of : mobile broadband satellite communication systems , designed for use in aircraft and seagoing vessels . fixed broadband satellite communication systems , including next-generation satellite network infrastructure and ground terminals . antenna systems , including ground terminals and antennas for terrestrial and satellite applications , mobile satellite communication , ka-band earth stations and other multi-band antennas . satellite networking development , including specialized design and technology services covering all aspects of satellite communication system architecture and technology . space systems , including the design and development of high-capacity ka-band satellites and associated payload technologies for our own satellite fleet as well as for third parties . government systems our government systems segment offers a broad array of products and services designed to enable the collection and transmission of secure real-time digital information and communications between fixed and mobile command centers , intelligence and defense platforms and individuals in the field . the primary products and services of our government systems segment include : government mobile broadband products and services , which provide military and government users with high-speed , real-time , broadband and multimedia connectivity in key regions of the world , as well as line-of-sight and beyond-line-of-sight isr missions . government satellite communication systems , which offer an array of portable , mobile and fixed broadband modems , terminals , network access control systems and antenna systems , and include products designed for manpacks , aircraft , uavs , seagoing vessels , ground-mobile vehicles and fixed applications . secure networking , cybersecurity and information assurance products and services , which provide advanced , high-speed ip-based “ type 1 ” and haipe-compliant encryption solutions that enable military and government users to communicate information securely over networks , and that protect the integrity of data stored on computers and storage devices . tactical data links , including our bats-d handheld link 16 radios , our stt 2-channel radios for manned and unmanned applications , “ disposable ” defense data links , and our mids and mids-jtrs terminals for military fighter jets . 47 sources of revenues our satellite services segment revenues are primarily derived from our fixed broadband services , in-flight services , and worldwide l-band managed services . revenues in our commercial networks and government systems segments are primarily derived from three types of contracts : fixed-price , cost-reimbursement and time-and-materials contracts . fixed-price contracts ( which require us to provide products and services under a contract at a specified price ) comprised approximately 88 % , 90 % and 88 % of our total revenues for these segments for fiscal years 2020 , 2019 and 2018 , respectively . the remainder of our revenues in these segments for such periods was derived primarily from cost-reimbursement contracts ( under which we are reimbursed for all actual costs incurred in performing the contract to the extent such costs are within the contract ceiling and allowable under the terms of the contract , plus a fee or profit ) and from time-and-materials contracts ( which reimburse us for the number of labor hours expended at an established hourly rate negotiated in the contract , plus the cost of materials utilized in providing such products or services ) . our ability to grow and maintain our revenues in our commercial networks and government systems segments has to date depended on our ability to identify and target markets where the customer places a high priority on the technology solution , and our ability to obtain additional sizable contract awards . story_separator_special_tag a lease is classified as a finance lease when one or more of the following criteria are met : ( i ) the lease transfers ownership of the asset by the end of the lease term , ( ii ) the lease contains an option to purchase the asset that is reasonably certain to be exercised , ( iii ) the lease term is for a major part of the remaining useful life of the asset , ( iv ) the present value of the lease payments equals or exceeds substantially all of the fair value of the asset or ( v ) the asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term . a lease is classified as an operating lease if it does not meet any of these criteria . starting at april 1 , 2019 , at the lease commencement date , we recognize a right-of-use asset and a lease liability for all leases , except short-term leases with an original term of 12 months or less . the right-of-use asset represents the right to use the leased asset for the lease term . the lease liability represents the present value of the lease payments under the lease . the right-of-use asset is initially measured at cost , which primarily comprises the initial amount of the lease liability , less any lease incentives received . all right-of-use assets are periodically reviewed for impairment in accordance with standards that apply to long-lived assets . the lease liability is initially measured at the present value of the lease payments , discounted using an estimate of our incremental borrowing rate for a collateralized loan with the same term as the underlying leases . lease payments included in the measurement of lease liabilities consist of ( i ) fixed lease payments for the noncancelable lease term , ( ii ) fixed lease payments for optional renewal periods where it is reasonably certain the renewal option will be exercised , and ( iii ) variable lease payments that depend on an underlying index or rate , based on the index or rate in effect at lease commencement . certain of our real estate lease agreements require variable lease payments that do not depend on an underlying index or rate established at lease commencement . such payments and changes in payments based on a rate or index are recognized in operating expenses when incurred . lease expense for operating leases consists of the fixed lease payments recognized on a straight-line basis over the lease term plus variable lease payments as incurred . lease expense for finance leases consists of the depreciation of assets obtained under finance leases on a straight-line basis over the lease term and interest expense on the lease liability based on the discount rate at lease commencement . for both operating and finance leases , lease payments are allocated between a reduction of the lease liability and interest expense . for broadband equipment leased to fixed broadband customers in conjunction with the delivery of connectivity services , we have made an accounting policy election not to separate the broadband equipment from the related connectivity services . the connectivity services are the predominant component of these arrangements . the connectivity services are accounted for in accordance asc 606. we are also a lessor for certain insignificant communications equipment . these leases meet the criteria for operating lease classification . lease income associated with these leases is not material . impairment of long-lived and other long-term assets ( property , equipment and satellites , and other assets , including goodwill ) in accordance with the authoritative guidance for impairment or disposal of long-lived assets ( asc 360 ) , we assess potential impairments to our long-lived assets , including property , equipment and satellites and other assets , when there is evidence that events or changes in circumstances indicate that the carrying value may not be recoverable . we recognize an impairment loss when the undiscounted cash flows expected to be generated by an asset ( or group of assets ) are less than the asset 's carrying value . any required impairment loss would be measured as the amount by which the asset 's carrying value exceeds its fair value , and would be recorded as a reduction in the carrying value of the related asset and charged to results of operations . no material impairments were recorded by us for fiscal years 2020 , 2019 and 2018 . 51 we account for our goodwill under the authoritative guidance for goodwill and other intangible assets ( asc 350 ) and the provisions of asu 201 7 -0 4 , simplifying the test for goodwill impairment , which we early adopted in the third quarter of fiscal year 2020. asu 2017-04 simplifies how we test goodwill for impairment by removing step 2 from the goodwill impairment test . current authoritative guidance allows us to first assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test . if , after completing the qualitative assessment , we determine that it is more likely than not that the estimated fair value is greater than the carrying value , we conclude that no impairment exists . if it is more likely than not that the carrying value of the reporting unit exceeds its estimated fair value , we compare the fair value of the reporting unit to its carrying value . if the estimated fair value of the reporting unit is less than the carrying value , then a goodwill impairment charge will be recognized in the amount by which the carrying amount exceeds the fair value , limited to the total amount of goodwill allocated to that reporting unit . we test goodwill for impairment during the fourth quarter every fiscal year and when an event occurs or circumstances change such that

cash flows cash provided by operating activities for fiscal year 2020 was $ 436.9 million compared to $ 327.6 million for fiscal year 2019. this $ 109.4 million increase was primarily driven by our operating results ( net income adjusted for depreciation , amortization and other non-cash changes ) which resulted in $ 136.6 million of higher cash provided by operating activities year-over-year , partially offset by a $ 27.3 million year-over-year increase in cash used to fund net operating assets . the increase in cash used to fund net operating assets during fiscal year 2020 when compared to fiscal year 2019 was primarily due to an increase in cash used for inventory in our commercial networks segment reflecting the accelerated install schedule in mobile broadband satellite communications systems products in the prior year period and timing of payments related to our accrued liabilities . cash used in investing activities for fiscal year 2020 was $ 758.8 million compared to $ 489.4 million for fiscal year 2019. this $ 269.4 million increase in cash used in investing activities year-over year reflects an increase of $ 87.3 million in cash used for satellite construction , as well as the receipt in fiscal year 2019 of $ 183.4 million in insurance proceeds from insurance claims relating to the viasat-2 satellite . cash provided by financing activities for fiscal year 2020 was $ 365.2 million compared to $ 354.6 million for fiscal year 2019. cash provided by financing activities year-over-year included a decrease in payments on borrowings under our revolving credit facility of $ 480.0 million , a decrease in payments on borrowings under the ex-im credit facility of $ 201.2 million and a decrease of $ 7.3 million in payments of debt issuance costs , offset by lower proceeds from borrowings under our revolving credit facility of $ 90.0 million and the receipt in the prior year period of $ 600.0 million of gross proceeds from our 2027 notes . cash provided by financing activities for both periods included cash received from stock option exercises and employee stock purchase plan purchases which were $ 12.1 million higher year-over-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 cash provided by operating activities for fiscal year 2020 was $ 436.9 million compared to $ 327.6 million for fiscal year 2019. this $ 109.4 million increase was primarily driven by our operating results ( net income adjusted for depreciation , amortization and other non-cash changes ) which resulted in $ 136.6 million of higher cash provided by operating activities year-over-year , partially offset by a $ 27.3 million year-over-year increase in cash used to fund net operating assets . the increase in cash used to fund net operating assets during fiscal year 2020 when compared to fiscal year 2019 was primarily due to an increase in cash used for inventory in our commercial networks segment reflecting the accelerated install schedule in mobile broadband satellite communications systems products in the prior year period and timing of payments related to our accrued liabilities . cash used in investing activities for fiscal year 2020 was $ 758.8 million compared to $ 489.4 million for fiscal year 2019. this $ 269.4 million increase in cash used in investing activities year-over year reflects an increase of $ 87.3 million in cash used for satellite construction , as well as the receipt in fiscal year 2019 of $ 183.4 million in insurance proceeds from insurance claims relating to the viasat-2 satellite . cash provided by financing activities for fiscal year 2020 was $ 365.2 million compared to $ 354.6 million for fiscal year 2019. cash provided by financing activities year-over-year included a decrease in payments on borrowings under our revolving credit facility of $ 480.0 million , a decrease in payments on borrowings under the ex-im credit facility of $ 201.2 million and a decrease of $ 7.3 million in payments of debt issuance costs , offset by lower proceeds from borrowings under our revolving credit facility of $ 90.0 million and the receipt in the prior year period of $ 600.0 million of gross proceeds from our 2027 notes . cash provided by financing activities for both periods included cash received from stock option exercises and employee stock purchase plan purchases which were $ 12.1 million higher year-over-year . ``` Suspicious Activity Report : as of march 31 , 2020 , we provided fixed broadband services to approximately 590,000 u.s. subscribers ( excluding subscribers whose service would have ordinarily been terminated in the absence of the federal fcc pledge and similar state programs we are currently participating 46 in to ensur e our customers have access to connectivity during the covid-19 pandemic ) . for the three months ended march 31 , 2020 , arpu was $ 9 3 . 0 6 . in-flight services , which provide industry-leading ifc , w-ife and aviation software services . as of march 31 , 2020 , we provided ifc services to 1,390 commercial aircraft in service , with ifc services anticipated to be activated on approximately 750 additional commercial aircraft under our existing customer agreements with commercial airlines . the number of commercial aircraft in service may be negatively impacted in future quarters due to the grounding of installed aircraft as a result of the impact of the covid-19 pandemic on global air traffic and the airline industry . the timing of installation and entry into service for additional aircraft under existing customer agreements may also be delayed due to covid-19 impacts . there can be no assurance that anticipated ifc services will be activated on all such additional commercial aircraft . community internet services , which offer innovative , affordable , satellite-based connectivity in communities with poor or no other means of internet access . the services help foster digital inclusion by enabling millions of people to connect to affordable high-quality internet services via a centralized community hotspot connected to the internet via satellite . our community internet services are currently offered primarily in mexico , and we expect to expand these services to other countries in the future . other mobile broadband services , which include high-speed , satellite-based internet services to seagoing vessels ( such as energy offshore vessels , cruise ships , consumer ferries and yachts ) , as well as l-band managed services enabling real-time machine-to-machine ( m2m ) position tracking , management of remote assets and operations , and visibility into critical areas of the supply chain . commercial networks our commercial networks segment develops and sells a wide array of advanced satellite and wireless products , antenna systems and terminal solutions that support or enable the provision of high-speed fixed and mobile broadband services . the primary products , systems , solutions and services offered by our commercial networks segment are comprised of : mobile broadband satellite communication systems , designed for use in aircraft and seagoing vessels . fixed broadband satellite communication systems , including next-generation satellite network infrastructure and ground terminals . antenna systems , including ground terminals and antennas for terrestrial and satellite applications , mobile satellite communication , ka-band earth stations and other multi-band antennas . satellite networking development , including specialized design and technology services covering all aspects of satellite communication system architecture and technology . space systems , including the design and development of high-capacity ka-band satellites and associated payload technologies for our own satellite fleet as well as for third parties . government systems our government systems segment offers a broad array of products and services designed to enable the collection and transmission of secure real-time digital information and communications between fixed and mobile command centers , intelligence and defense platforms and individuals in the field . the primary products and services of our government systems segment include : government mobile broadband products and services , which provide military and government users with high-speed , real-time , broadband and multimedia connectivity in key regions of the world , as well as line-of-sight and beyond-line-of-sight isr missions . government satellite communication systems , which offer an array of portable , mobile and fixed broadband modems , terminals , network access control systems and antenna systems , and include products designed for manpacks , aircraft , uavs , seagoing vessels , ground-mobile vehicles and fixed applications . secure networking , cybersecurity and information assurance products and services , which provide advanced , high-speed ip-based “ type 1 ” and haipe-compliant encryption solutions that enable military and government users to communicate information securely over networks , and that protect the integrity of data stored on computers and storage devices . tactical data links , including our bats-d handheld link 16 radios , our stt 2-channel radios for manned and unmanned applications , “ disposable ” defense data links , and our mids and mids-jtrs terminals for military fighter jets . 47 sources of revenues our satellite services segment revenues are primarily derived from our fixed broadband services , in-flight services , and worldwide l-band managed services . revenues in our commercial networks and government systems segments are primarily derived from three types of contracts : fixed-price , cost-reimbursement and time-and-materials contracts . fixed-price contracts ( which require us to provide products and services under a contract at a specified price ) comprised approximately 88 % , 90 % and 88 % of our total revenues for these segments for fiscal years 2020 , 2019 and 2018 , respectively . the remainder of our revenues in these segments for such periods was derived primarily from cost-reimbursement contracts ( under which we are reimbursed for all actual costs incurred in performing the contract to the extent such costs are within the contract ceiling and allowable under the terms of the contract , plus a fee or profit ) and from time-and-materials contracts ( which reimburse us for the number of labor hours expended at an established hourly rate negotiated in the contract , plus the cost of materials utilized in providing such products or services ) . our ability to grow and maintain our revenues in our commercial networks and government systems segments has to date depended on our ability to identify and target markets where the customer places a high priority on the technology solution , and our ability to obtain additional sizable contract awards . story_separator_special_tag a lease is classified as a finance lease when one or more of the following criteria are met : ( i ) the lease transfers ownership of the asset by the end of the lease term , ( ii ) the lease contains an option to purchase the asset that is reasonably certain to be exercised , ( iii ) the lease term is for a major part of the remaining useful life of the asset , ( iv ) the present value of the lease payments equals or exceeds substantially all of the fair value of the asset or ( v ) the asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term . a lease is classified as an operating lease if it does not meet any of these criteria . starting at april 1 , 2019 , at the lease commencement date , we recognize a right-of-use asset and a lease liability for all leases , except short-term leases with an original term of 12 months or less . the right-of-use asset represents the right to use the leased asset for the lease term . the lease liability represents the present value of the lease payments under the lease . the right-of-use asset is initially measured at cost , which primarily comprises the initial amount of the lease liability , less any lease incentives received . all right-of-use assets are periodically reviewed for impairment in accordance with standards that apply to long-lived assets . the lease liability is initially measured at the present value of the lease payments , discounted using an estimate of our incremental borrowing rate for a collateralized loan with the same term as the underlying leases . lease payments included in the measurement of lease liabilities consist of ( i ) fixed lease payments for the noncancelable lease term , ( ii ) fixed lease payments for optional renewal periods where it is reasonably certain the renewal option will be exercised , and ( iii ) variable lease payments that depend on an underlying index or rate , based on the index or rate in effect at lease commencement . certain of our real estate lease agreements require variable lease payments that do not depend on an underlying index or rate established at lease commencement . such payments and changes in payments based on a rate or index are recognized in operating expenses when incurred . lease expense for operating leases consists of the fixed lease payments recognized on a straight-line basis over the lease term plus variable lease payments as incurred . lease expense for finance leases consists of the depreciation of assets obtained under finance leases on a straight-line basis over the lease term and interest expense on the lease liability based on the discount rate at lease commencement . for both operating and finance leases , lease payments are allocated between a reduction of the lease liability and interest expense . for broadband equipment leased to fixed broadband customers in conjunction with the delivery of connectivity services , we have made an accounting policy election not to separate the broadband equipment from the related connectivity services . the connectivity services are the predominant component of these arrangements . the connectivity services are accounted for in accordance asc 606. we are also a lessor for certain insignificant communications equipment . these leases meet the criteria for operating lease classification . lease income associated with these leases is not material . impairment of long-lived and other long-term assets ( property , equipment and satellites , and other assets , including goodwill ) in accordance with the authoritative guidance for impairment or disposal of long-lived assets ( asc 360 ) , we assess potential impairments to our long-lived assets , including property , equipment and satellites and other assets , when there is evidence that events or changes in circumstances indicate that the carrying value may not be recoverable . we recognize an impairment loss when the undiscounted cash flows expected to be generated by an asset ( or group of assets ) are less than the asset 's carrying value . any required impairment loss would be measured as the amount by which the asset 's carrying value exceeds its fair value , and would be recorded as a reduction in the carrying value of the related asset and charged to results of operations . no material impairments were recorded by us for fiscal years 2020 , 2019 and 2018 . 51 we account for our goodwill under the authoritative guidance for goodwill and other intangible assets ( asc 350 ) and the provisions of asu 201 7 -0 4 , simplifying the test for goodwill impairment , which we early adopted in the third quarter of fiscal year 2020. asu 2017-04 simplifies how we test goodwill for impairment by removing step 2 from the goodwill impairment test . current authoritative guidance allows us to first assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test . if , after completing the qualitative assessment , we determine that it is more likely than not that the estimated fair value is greater than the carrying value , we conclude that no impairment exists . if it is more likely than not that the carrying value of the reporting unit exceeds its estimated fair value , we compare the fair value of the reporting unit to its carrying value . if the estimated fair value of the reporting unit is less than the carrying value , then a goodwill impairment charge will be recognized in the amount by which the carrying amount exceeds the fair value , limited to the total amount of goodwill allocated to that reporting unit . we test goodwill for impairment during the fourth quarter every fiscal year and when an event occurs or circumstances change such that

management focuses on several measurements that we believe provide us with the necessary ratios and key performance indicators to manage our business , determine how we are performing versus our internal goals and targets , and against the performance of our competitors and other benchmarks in the marketplace in which we operate . senior executives hold meetings twice per quarter with officers , managers and staff to discuss and analyze operating results and address significant variances to budget and prior year in an effort to identify trends and changes in our business . we focus on many operating metrics including changes in revenue , oibda , adjusted oibda and adjusted oibda margin , as defined and discussed in “ notes to the selected historical financial and operating data ” above , as some of our primary measurement metrics . in addition , we monitor our monthly advertising performance measurements , including advertising inventory utilization , national and local advertising pricing ( cpm ) , local/regional advertising rate per screen per week , local/regional and total advertising revenue per attendee , as well as , our free cash flow , dividend coverage ratio , financial leverage ( net debt divided by adjusted oibda ) and cash balances and revolving credit facility availability to ensure debt covenant compliance and that there is adequate cash availability to fund our working capital needs and debt obligations and current and future dividends declared by our board of directors . recent transactions on december 26 , 2013 , ncm llc sold its fathom events business to a newly formed limited liability company ( ac jv , llc ) owned 32 % by each of the founding members and 4 % by ncm llc . the fathom events business focused on the marketing and distribution of live and pre-recorded entertainment programming to theatre operators to provide additional programs to augment their feature film schedule . in consideration for the sale , ncm llc received a total of $ 25.0 million in promissory notes from its founding members ( one-third from each founding member ) . refer to note 2 to the audited consolidated financial statements included elsewhere in this document . on may 5 , 2014 , ncm , inc. entered into an agreement and plan of merger ( the “ merger agreement ” ) to merge with screenvision . on november 3 , 2014 , the department of justice filed a lawsuit seeking to enjoin the merger . on march 16 , 2015 , the company announced the termination of the merger agreement and the lawsuit was dismissed . after the merger agreement was terminated , ncm llc reimbursed ncm , inc. for certain expenses pursuant to an indemnification agreement 37 among ncm llc , ncm , inc. and the founding memb ers . on march 17 , 2015 , ncm llc paid screenvision an approximate $ 26.8 million termination payment on behalf of ncm , inc. this payment was $ 2 million lower than the reverse termination fee contemplated by the merger agreement . during the year ended decem ber 31 , 2015 , ncm llc also either paid directly or reimbursed ncm , inc. for the legal and other merger-related costs of approximately $ 15.0 million ( $ 7.5 million incurred by ncm , inc. during the year ended january 1 , 2015 and approximately $ 7.5 million inc urred by ncm llc during the year ended december 31 , 2015 ) . the company and the founding members each bore a pro rata portion of the termination fee and the related merger expenses based on their aggregate ownership percentages in ncm llc when the expenses were incurred . our operating results may be affected by a variety of internal and external factors and trends described more fully in the section entitled “ risk factors ” in this form 10-k. summary historical and operating data you should read this information in conjunction with the other information contained in this document , and our audited historical financial statements and the notes thereto included elsewhere in this document . the following table presents operating data and adjusted oibda ( dollars in millions , except share and margin data ) . refer to “ item 6. selected financial data—notes to the selected historical financial and operating data ” for a discussion of the calculation of adjusted oibda and reconciliation to consolidated net income . replace_table_token_9_th nm = not meaningful . ( 1 ) merger termination fee and related merger costs primarily include the merger termination payment and legal , accounting , advisory and other professional fees associated with the terminated merger with screenvision . ( 2 ) represents the total attendance within ncm llc 's advertising network . ( 3 ) excludes screens and attendance associated with certain amc rave and cinemark rave theatres for all periods presented . refer to note 5 to the audited consolidated financial statements included elsewhere in this document . 38 basis of presentation prior to the completion of the ipo , ncm llc was wholly-owned by its founding members . in connection with the offering , ncm , inc. purchased newly issued common membership units from ncm llc and common membership units from ncm llc 's founding members , and became a member of and the sole manager of ncm llc . we entered into several agreements to effect the reorganization and the financing transaction and certain amendments were made to the existing esas to govern the relationships among ncm llc and ncm llc 's founding members after the completion of these transactions . the results of operations data discussed herein were derived from the audited consolidated financial statements and accounting records of ncm , inc. and should be read in conjunction with the notes thereto . we have a 52-week or 53-week fiscal year ending on the first thursday after december 25. fiscal year 2014 contained 53 weeks . fiscal years 2013 and 2015 contained 52 weeks . story_separator_special_tag an additional week in 2014. theatre access fees—founding members . theatre access fees increased $ 1.2 million , or 1.7 % , from $ 69.4 million for the year ended december 26 , 2013 to $ 70.6 million for the year ended january 1 , 2015. the increase was due to a $ 2.0 million increase in theatre access fees due to an increase in the number of digital screens ( connected to dcn ) , including higher quality digital cinema projectors and related equipment , partially offset by a $ 0.8 million decrease related to the 1.6 % decrease in founding member attendance in 2014 compared to 2013. the fees for digital screens and equipment increased $ 1.2 million related to an annual 5 % rate increase specified in the esas and $ 0.8 million from an increase of 2.5 % in the average number of founding member digital screens and an increase of 3.8 % in the average number of founding member theatres equipped with the higher quality digital cinema equipment year-over-year . the increases in digital screens and theatres with digital cinema equipment were due primarily to acquisitions by the founding members . selling and marketing costs . selling and marketing costs decreased $ 3.9 million , or 6.3 % , from $ 61.5 million for the year ended december 26 , 2013 to $ 57.6 million for the year ended january 1 , 2015. this decrease was primarily due to a decrease in bad debt expense of $ 2.2 million as actual advertising accounts receivable write-offs were lower than estimated , a decrease of $ 1.6 million in non-cash barter expense related to timing of barter transactions and a decrease of $ 0.6 million in certain discretionary marketing expenses . these decreases to selling and marketing costs were partially offset by an increase of $ 0.3 million in personnel expense due primarily to higher share-based compensation expense and local commissions , partially offset by lower salaries , bonuses and related taxes ( related to lower performance against internal targets ) and lower benefit costs . administrative and other costs . other administrative and other costs increased $ 0.1 million , or 0.3 % , from $ 29.4 million for the year ended december 26 , 2013 to $ 29.5 million for the year ended january 1 , 2015 due primarily to a $ 0.9 million increase in personnel expense due primarily to lower capitalized labor , higher share-based compensation expense and the impact of an additional week in 2014 , partially offset by lower bonus expense and related taxes ( related to lower performance against internal targets ) and lower benefit costs , partially offset by a decrease in legal and professional fees of approximately $ 0.5 million . depreciation and amortization . depreciation and amortization expense increased $ 5.8 million , or 21.8 % , from $ 26.6 million for the year ended december 26 , 2013 to $ 32.4 million for the year ended january 1 , 2015. the increase was primarily due to higher amortization of intangible assets related to new affiliate agreements and ncm llc founding member common unit adjustments , primarily related to founding member theatre acquisitions and the impact of an additional week in 2014. merger-related administrative costs . merger-related administrative costs were $ 7.5 million for the year ended january 1 , 2015 due primarily to legal and accounting fees associated with the terminated screenvision merger . non-operating expenses . total non-operating expenses increased $ 24.2 million , or 46.5 % , from $ 52.0 million for the year ended december 26 , 2013 to $ 76.2 million for the year ended january 1 , 2015. the following table shows the changes in non-operating expense for the years ended january 1 , 2015 and december 26 , 2013 ( in millions ) : replace_table_token_17_th nm = not meaningful . 44 the increase in non-operating expense was due primarily to the absence of the gain recorded in 2013 of $ 25.4 million , net of direct expenses , related to the sale of our fathom events business on december 26 , 2013. in addition , interest on borrowings increased $ 1.0 millio n due to an additional week in our 53-week year , compared to a 52-week year in 2013. interest due to ncm llc 's founding members under the tax receivable agreement increased $ 0.7 million due primarily to changes in tax rates and ncm llc ownership rates pe riod over period . the increase in non-operating expense was partially offset by an increase in interest income of $ 1.4 million due primarily to interest accrued on the notes receivable from ncm llc 's founding members from the sale of fathom events and the absence of a $ 0.8 million impairment of an investment recorded in 2013. net income . net income decreased $ 27.8 million from $ 41.2 million for the year ended december 26 , 2013 to $ 13.4 million for the year ended january 1 , 2015. the decrease in net income was due to a decrease in operating income of $ 50.3 million that was due primarily to the decrease in our national advertising revenue and was negatively impacted by the sale of the fathom events business and $ 7.5 million of merger-related expenses , and an increase of $ 24.2 million in non-operating expense , as described further above , partially offset by a $ 36.4 million decrease in income attributable to noncontrolling interests and a decrease in income tax expense of $ 10.3 million , due primarily to lower net income before taxes in the period . known trends and uncertainties trends and uncertainties related to our business , industry and corporate structure changes in the current macro-economic environment and changes in the national , regional and local advertising markets , including increased competition related to the expansion of online and mobile advertising platforms , present uncertainties that could impact our results of

financial condition and liquidity liquidity our cash balances can fluctuate due to the seasonality of our business and related timing of collections of accounts receivable balances and operating expenditure payments , as well as , available cash payments ( as defined in the ncm llc operating agreement ) to ncm llc 's founding members , interest or principal payments on our term loan and the senior secured notes and senior unsecured notes , income tax payments , tax receivable agreement payments to ncm llc 's founding members and amount of quarterly dividends to ncm , inc. 's common stockholders ( including special dividends ) . a summary of our financial liquidity is as follows ( in millions ) : replace_table_token_19_th ( 1 ) included in cash and cash equivalents as of december 31 , 2015 , january 1 , 2015 and december 26 , 2013 there was $ 3.0 million , $ 10.2 million and $ 13.3 million of cash held by ncm llc which is not available to satisfy ncm , inc. 's dividend payments and other ncm , inc. obligations . ( 2 ) the revolving credit facility portion of ncm llc 's total borrowings is available , subject to certain conditions , for general corporate purposes of ncm llc in the ordinary course of business and for other transactions permitted under the senior secured credit facility , and a portion is available for letters of credit . ncm llc 's total availability under the revolving credit facility is $ 135.0 million .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```financial condition and liquidity liquidity our cash balances can fluctuate due to the seasonality of our business and related timing of collections of accounts receivable balances and operating expenditure payments , as well as , available cash payments ( as defined in the ncm llc operating agreement ) to ncm llc 's founding members , interest or principal payments on our term loan and the senior secured notes and senior unsecured notes , income tax payments , tax receivable agreement payments to ncm llc 's founding members and amount of quarterly dividends to ncm , inc. 's common stockholders ( including special dividends ) . a summary of our financial liquidity is as follows ( in millions ) : replace_table_token_19_th ( 1 ) included in cash and cash equivalents as of december 31 , 2015 , january 1 , 2015 and december 26 , 2013 there was $ 3.0 million , $ 10.2 million and $ 13.3 million of cash held by ncm llc which is not available to satisfy ncm , inc. 's dividend payments and other ncm , inc. obligations . ( 2 ) the revolving credit facility portion of ncm llc 's total borrowings is available , subject to certain conditions , for general corporate purposes of ncm llc in the ordinary course of business and for other transactions permitted under the senior secured credit facility , and a portion is available for letters of credit . ncm llc 's total availability under the revolving credit facility is $ 135.0 million . ``` Suspicious Activity Report : management focuses on several measurements that we believe provide us with the necessary ratios and key performance indicators to manage our business , determine how we are performing versus our internal goals and targets , and against the performance of our competitors and other benchmarks in the marketplace in which we operate . senior executives hold meetings twice per quarter with officers , managers and staff to discuss and analyze operating results and address significant variances to budget and prior year in an effort to identify trends and changes in our business . we focus on many operating metrics including changes in revenue , oibda , adjusted oibda and adjusted oibda margin , as defined and discussed in “ notes to the selected historical financial and operating data ” above , as some of our primary measurement metrics . in addition , we monitor our monthly advertising performance measurements , including advertising inventory utilization , national and local advertising pricing ( cpm ) , local/regional advertising rate per screen per week , local/regional and total advertising revenue per attendee , as well as , our free cash flow , dividend coverage ratio , financial leverage ( net debt divided by adjusted oibda ) and cash balances and revolving credit facility availability to ensure debt covenant compliance and that there is adequate cash availability to fund our working capital needs and debt obligations and current and future dividends declared by our board of directors . recent transactions on december 26 , 2013 , ncm llc sold its fathom events business to a newly formed limited liability company ( ac jv , llc ) owned 32 % by each of the founding members and 4 % by ncm llc . the fathom events business focused on the marketing and distribution of live and pre-recorded entertainment programming to theatre operators to provide additional programs to augment their feature film schedule . in consideration for the sale , ncm llc received a total of $ 25.0 million in promissory notes from its founding members ( one-third from each founding member ) . refer to note 2 to the audited consolidated financial statements included elsewhere in this document . on may 5 , 2014 , ncm , inc. entered into an agreement and plan of merger ( the “ merger agreement ” ) to merge with screenvision . on november 3 , 2014 , the department of justice filed a lawsuit seeking to enjoin the merger . on march 16 , 2015 , the company announced the termination of the merger agreement and the lawsuit was dismissed . after the merger agreement was terminated , ncm llc reimbursed ncm , inc. for certain expenses pursuant to an indemnification agreement 37 among ncm llc , ncm , inc. and the founding memb ers . on march 17 , 2015 , ncm llc paid screenvision an approximate $ 26.8 million termination payment on behalf of ncm , inc. this payment was $ 2 million lower than the reverse termination fee contemplated by the merger agreement . during the year ended decem ber 31 , 2015 , ncm llc also either paid directly or reimbursed ncm , inc. for the legal and other merger-related costs of approximately $ 15.0 million ( $ 7.5 million incurred by ncm , inc. during the year ended january 1 , 2015 and approximately $ 7.5 million inc urred by ncm llc during the year ended december 31 , 2015 ) . the company and the founding members each bore a pro rata portion of the termination fee and the related merger expenses based on their aggregate ownership percentages in ncm llc when the expenses were incurred . our operating results may be affected by a variety of internal and external factors and trends described more fully in the section entitled “ risk factors ” in this form 10-k. summary historical and operating data you should read this information in conjunction with the other information contained in this document , and our audited historical financial statements and the notes thereto included elsewhere in this document . the following table presents operating data and adjusted oibda ( dollars in millions , except share and margin data ) . refer to “ item 6. selected financial data—notes to the selected historical financial and operating data ” for a discussion of the calculation of adjusted oibda and reconciliation to consolidated net income . replace_table_token_9_th nm = not meaningful . ( 1 ) merger termination fee and related merger costs primarily include the merger termination payment and legal , accounting , advisory and other professional fees associated with the terminated merger with screenvision . ( 2 ) represents the total attendance within ncm llc 's advertising network . ( 3 ) excludes screens and attendance associated with certain amc rave and cinemark rave theatres for all periods presented . refer to note 5 to the audited consolidated financial statements included elsewhere in this document . 38 basis of presentation prior to the completion of the ipo , ncm llc was wholly-owned by its founding members . in connection with the offering , ncm , inc. purchased newly issued common membership units from ncm llc and common membership units from ncm llc 's founding members , and became a member of and the sole manager of ncm llc . we entered into several agreements to effect the reorganization and the financing transaction and certain amendments were made to the existing esas to govern the relationships among ncm llc and ncm llc 's founding members after the completion of these transactions . the results of operations data discussed herein were derived from the audited consolidated financial statements and accounting records of ncm , inc. and should be read in conjunction with the notes thereto . we have a 52-week or 53-week fiscal year ending on the first thursday after december 25. fiscal year 2014 contained 53 weeks . fiscal years 2013 and 2015 contained 52 weeks . story_separator_special_tag an additional week in 2014. theatre access fees—founding members . theatre access fees increased $ 1.2 million , or 1.7 % , from $ 69.4 million for the year ended december 26 , 2013 to $ 70.6 million for the year ended january 1 , 2015. the increase was due to a $ 2.0 million increase in theatre access fees due to an increase in the number of digital screens ( connected to dcn ) , including higher quality digital cinema projectors and related equipment , partially offset by a $ 0.8 million decrease related to the 1.6 % decrease in founding member attendance in 2014 compared to 2013. the fees for digital screens and equipment increased $ 1.2 million related to an annual 5 % rate increase specified in the esas and $ 0.8 million from an increase of 2.5 % in the average number of founding member digital screens and an increase of 3.8 % in the average number of founding member theatres equipped with the higher quality digital cinema equipment year-over-year . the increases in digital screens and theatres with digital cinema equipment were due primarily to acquisitions by the founding members . selling and marketing costs . selling and marketing costs decreased $ 3.9 million , or 6.3 % , from $ 61.5 million for the year ended december 26 , 2013 to $ 57.6 million for the year ended january 1 , 2015. this decrease was primarily due to a decrease in bad debt expense of $ 2.2 million as actual advertising accounts receivable write-offs were lower than estimated , a decrease of $ 1.6 million in non-cash barter expense related to timing of barter transactions and a decrease of $ 0.6 million in certain discretionary marketing expenses . these decreases to selling and marketing costs were partially offset by an increase of $ 0.3 million in personnel expense due primarily to higher share-based compensation expense and local commissions , partially offset by lower salaries , bonuses and related taxes ( related to lower performance against internal targets ) and lower benefit costs . administrative and other costs . other administrative and other costs increased $ 0.1 million , or 0.3 % , from $ 29.4 million for the year ended december 26 , 2013 to $ 29.5 million for the year ended january 1 , 2015 due primarily to a $ 0.9 million increase in personnel expense due primarily to lower capitalized labor , higher share-based compensation expense and the impact of an additional week in 2014 , partially offset by lower bonus expense and related taxes ( related to lower performance against internal targets ) and lower benefit costs , partially offset by a decrease in legal and professional fees of approximately $ 0.5 million . depreciation and amortization . depreciation and amortization expense increased $ 5.8 million , or 21.8 % , from $ 26.6 million for the year ended december 26 , 2013 to $ 32.4 million for the year ended january 1 , 2015. the increase was primarily due to higher amortization of intangible assets related to new affiliate agreements and ncm llc founding member common unit adjustments , primarily related to founding member theatre acquisitions and the impact of an additional week in 2014. merger-related administrative costs . merger-related administrative costs were $ 7.5 million for the year ended january 1 , 2015 due primarily to legal and accounting fees associated with the terminated screenvision merger . non-operating expenses . total non-operating expenses increased $ 24.2 million , or 46.5 % , from $ 52.0 million for the year ended december 26 , 2013 to $ 76.2 million for the year ended january 1 , 2015. the following table shows the changes in non-operating expense for the years ended january 1 , 2015 and december 26 , 2013 ( in millions ) : replace_table_token_17_th nm = not meaningful . 44 the increase in non-operating expense was due primarily to the absence of the gain recorded in 2013 of $ 25.4 million , net of direct expenses , related to the sale of our fathom events business on december 26 , 2013. in addition , interest on borrowings increased $ 1.0 millio n due to an additional week in our 53-week year , compared to a 52-week year in 2013. interest due to ncm llc 's founding members under the tax receivable agreement increased $ 0.7 million due primarily to changes in tax rates and ncm llc ownership rates pe riod over period . the increase in non-operating expense was partially offset by an increase in interest income of $ 1.4 million due primarily to interest accrued on the notes receivable from ncm llc 's founding members from the sale of fathom events and the absence of a $ 0.8 million impairment of an investment recorded in 2013. net income . net income decreased $ 27.8 million from $ 41.2 million for the year ended december 26 , 2013 to $ 13.4 million for the year ended january 1 , 2015. the decrease in net income was due to a decrease in operating income of $ 50.3 million that was due primarily to the decrease in our national advertising revenue and was negatively impacted by the sale of the fathom events business and $ 7.5 million of merger-related expenses , and an increase of $ 24.2 million in non-operating expense , as described further above , partially offset by a $ 36.4 million decrease in income attributable to noncontrolling interests and a decrease in income tax expense of $ 10.3 million , due primarily to lower net income before taxes in the period . known trends and uncertainties trends and uncertainties related to our business , industry and corporate structure changes in the current macro-economic environment and changes in the national , regional and local advertising markets , including increased competition related to the expansion of online and mobile advertising platforms , present uncertainties that could impact our results of

production volumes there are similar to last year 's crop , and the flue-cured crop quality is lower than average . our uncommitted inventories were higher at march 31 , 2014 , due in part to the slow start to the selling season in brazil . in africa , the markets have opened at a normal pace , and there are production volume increases in certain origins . at the same time , due to declines in the u.s. and western european retail cigarette sales , we may see some reductions in purchases of certain styles of tobacco , as customers adjust their inventory durations . given the increased production and potential customer inventory adjustments , we expect an oversupply of tobacco in fiscal year 2015 , which may lead to lower leaf prices that typify such cycles . our strategy remains focused on efficiently managing our business , meeting our customers ' and suppliers ' evolving needs , and returning value to our shareholders . we continue to invest in opportunities to improve our business and to promote sustainable , compliant leaf production . our long-term outlook for africa remains strong , consistent with our ongoing investments to both expand production this year in mozambique to serve our customers ' requirements and to enhance production efficiency in several other african origins . we also continue to seek out growth opportunities that enhance our value and help to sustain tobacco growers . last month , we announced our new food ingredient business which we believe is not only an attractive business opportunity , but provides tobacco growers with a new market for sweet potatoes , which are often grown in rotation with tobacco . we are excited about our 17 future and believe that we are well positioned to manage the cycles inherent in our industry while successfully executing on our strategy . results of operations amounts described as net income and earnings per diluted share in the following discussion are attributable to universal corporation and exclude earnings related to non-controlling interests in subsidiaries . the total for segment operating income referred to in the discussion below is a non-gaap financial measure . this measure is not a financial measure calculated in accordance with gaap and should not be considered as a substitute for net income , operating income , cash from operating activities or any other operating performance measure calculated in accordance with gaap , and it may not be comparable to similarly titled measures reported by other companies . we have provided a reconciliation of the total for segment operating income to consolidated operating income in note 15 . `` operating segments `` to the consolidated financial statements in item 8. we evaluate our segment performance excluding certain significant charges or credits . we believe this measure , which excludes these items that we believe are not indicative of our core operating results , provides investors with important information that is useful in understanding our business results and trends . fiscal year ended march 31 , 2014 , compared to the fiscal year ended march 31 , 2013 net income for the fiscal year ended march 31 , 2014 , was $ 149.0 million , or $ 5.25 per diluted share , compared with last year 's net income of $ 132.8 million , or $ 4.66 per diluted share . the current year 's results included a gain in the first fiscal quarter of $ 81.6 million before tax ( $ 53.1 million after tax , or $ 1.87 per diluted share ) , from the favorable outcome of litigation in brazil related to previous years ' excise tax credits . the annual results also included pretax restructuring costs of $ 6.7 million ( $ 0.15 per share ) and $ 4.1 million ( $ 0.06 per share ) for fiscal years 2014 and 2013 , respectively . segment operating income , which excludes those items , was $ 175.2 million for fiscal year 2014 , a decrease of $ 57.6 million from the prior year . that reduction was primarily attributable to weaker margins in brazil from higher green leaf costs , increased currency remeasurement and exchange costs , and the higher sales of carryover and uncommitted inventories in fiscal year 2013. revenues of $ 2.5 billion for fiscal year 2014 were up 3.3 % compared with the previous year , as slightly lower volumes were offset by higher prices . flue-cured and burley leaf tobacco operations within our flue-cured and burley leaf tobacco operations , operating income for our other regions segment for the fiscal year ended march 31 , 2014 , declined by 31 % to $ 133.4 million compared with the prior year . the reduction was driven primarily by results in south america , on lower volumes from fewer carryover shipments and weaker margins from higher green leaf prices . africa results were negatively impacted by a less favorable product mix despite increased shipment volumes from larger current crops . the weaker results in those regions were partly mitigated by improved results in europe as well as in asia , where trading volumes were higher . selling , general , and administrative expenses for the segment were significantly higher for the year , mostly due to unfavorable net foreign currency remeasurement and exchange comparisons , as current year losses compared to gains in fiscal year 2013 , mostly in africa , south america , and asia . revenues for this segment for the year increased by about 3 % to $ 1.9 billion compared with the previous year , reflecting modestly reduced volumes and higher green leaf prices . operating income for our north america segment for fiscal year 2014 was $ 23.2 million , up $ 3.5 million compared with the previous year , on a more favorable product mix and lower overheads , including postretirement benefit costs . story_separator_special_tag contractual obligations our contractual obligations as of march 31 , 2014 , were as follows : replace_table_token_4_th ( 1 ) includes interest payments . interest payments on $ 237.9 million of variable rate debt were estimated based on rates as of march 31 , 2014 . the company has entered interest rate swaps that effectively convert the interest payments on the $ 81.3 million outstanding balance of its amortizing bank term loan from variable to fixed . the fixed rate has been used to determine the contractual interest payments for all periods . in addition to principal and interest payments on notes payable and long-term debt , our contractual obligations include operating lease payments , inventory purchase commitments , and capital expenditure commitments . operating lease obligations represent minimum payments due under leases for various production , storage , distribution , and other facilities , as well as vehicles and equipment . tobacco inventory purchase obligations primarily represent contracts to purchase tobacco from farmers . the amounts shown above are estimates since actual quantities purchased will depend on crop yield , and prices will depend on the quality of the tobacco delivered . about 55 % of our crop year contracts to purchase tobacco are with farmers in brazil . we have partially funded our tobacco purchases in brazil and in other regions with advances to farmers and other suppliers , which totaled approximately $ 135 million , net of allowances , at march 31 , 2014 . in addition , we have guaranteed bank loans to farmers in brazil that relate to a portion of our tobacco purchase obligations there . at march 31 , 2014 , we were contingently liable under those guarantees for outstanding balances of approximately $ 22 million ( including accrued interest ) , and we had recorded a liability of approximately $ 2 million for the fair value of those guarantees . as tobacco is purchased and the related bank loans are repaid , our contingent liability is reduced . 23 critical accounting estimates and assumptions in preparing the financial statements in accordance with gaap , we are required to make estimates and assumptions that have an impact on the assets , liabilities , revenue , and expense amounts reported . these estimates can also affect our supplemental information disclosures , including information about contingencies , risks , and financial condition . we believe , given current facts and circumstances , that our estimates and assumptions are reasonable , adhere to gaap , and are consistently applied . however , changes in the assumptions used could result in a material adjustment to the financial statements . our critical accounting estimates and assumptions are in the following areas : inventories inventories of tobacco are valued at the lower of cost or market with cost determined under the specific cost method . raw materials are clearly identified at the time of purchase . we track the costs associated with raw materials in the final product lots , and maintain this identification through the time of sale . we also capitalize direct and indirect costs related to processing raw materials . this method of cost accounting is referred to as the specific cost or specific identification method . we write down inventory for changes in market value based upon assumptions related to future demand and market conditions if the indicated market value is below cost . future demand assumptions can be impacted by changes in customer sales , changes in customers ' inventory positions and policies , competitors ' pricing policies and inventory positions , changing customer needs , and varying crop sizes and qualities . market conditions that differ significantly from those assumed by management could result in additional write-downs . we experience inventory write-downs routinely . inventory write-downs in fiscal years 2014 , 2013 , and 2012 were $ 7.6 million , $ 1.5 million , and $ 8.3 million , respectively . advances to suppliers and guarantees of bank loans to suppliers in many sourcing origins , we provide tobacco growers with agronomy services and seasonal crop advances of , or for , seed , fertilizer , and other supplies . these advances are short term in nature and are customarily repaid upon delivery of tobacco to us . in several origins , we have also made long-term advances to tobacco farmers to finance curing barns and other farm infrastructure . in brazil , we also guarantee loans made to farmers for the same purposes . in some years , due to low crop yields and other factors , individual farmers may not deliver sufficient volumes of tobacco to repay maturing advances . in those cases , we may extend repayment of the advances into the following crop year or satisfy the guarantee by acquiring the loan from the bank . in either situation , we will incur losses whenever we are unable to recover the full amount of the loans and advances . at each reporting period , we must make estimates and assumptions in determining the valuation allowance for advances to farmers and the liability to accrue for our obligations under bank loan guarantees . at march 31 , 2014 , the gross balance of advances to suppliers totaled approximately $ 190 million , and the related valuation allowance totaled approximately $ 46 million . the fair value of the loan guarantees for farmers in brazil was a liability of approximately $ 2 million at march 31 , 2014 . recoverable value-added tax credits in many foreign countries , we pay significant amounts of value-added tax ( “ vat ” ) on purchases of unprocessed and processed tobacco , crop inputs , packing materials , and various other goods and services . in some countries , vat is a national tax , and in other countries it is assessed at the state level . items subject to vat vary from jurisdiction to jurisdiction , as do the rates at which the tax

cash flow our operations used about $ 3.5 million in operating cash flows in fiscal year 2014 , and we reduced our cash balances by $ 204.3 million . we spent $ 45.8 million on capital projects , returned $ 75.7 million to shareholders in the form of dividends and repurchases of our common stock , and reduced our total debt by $ 80.0 million . at march 31 , 2014 , cash balances totaled $ 163.5 million . working capital working capital at march 31 , 2014 , was about $ 1.2 billion , up $ 94.9 million from last year 's level . the $ 204.3 million decline in cash and cash equivalents was partially offset by higher accounts receivable from larger crops as well as higher inventories , up $ 66.3 million and $ 25.9 million , respectively . current liabilities declined by $ 167.6 million , largely due to lower current maturities of long-term obligations and decreased notes payable and overdrafts , down $ 95.0 million and $ 42.4 million , respectively . tobacco inventories at march 31 , 2014 , were up $ 16.4 million . the slight increase was largely due to a slow start to the buying and selling season in brazil . we usually finance inventory with a mix of cash , notes payable , and customer deposits , depending on our borrowing capabilities , interest rates , and exchange rates , as well as those of our customers . we generally do not purchase material quantities of tobacco on a speculative basis . however , when we contract directly with farmers , we are often obligated to buy all stalk positions , which may contain less marketable leaf styles . our uncommitted tobacco inventories increased by approximately $ 54.4 million to $ 171.4 million , or about 27 % of tobacco inventory , at march 31 , 2014. uncommitted inventories at march 31 , 2013 , were $ 117.0 million , which represented 19 % of tobacco inventory . the level of these uncommitted inventories is influenced by timing of farmer deliveries of new crops , as well as the timing of customer purchases .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 our operations used about $ 3.5 million in operating cash flows in fiscal year 2014 , and we reduced our cash balances by $ 204.3 million . we spent $ 45.8 million on capital projects , returned $ 75.7 million to shareholders in the form of dividends and repurchases of our common stock , and reduced our total debt by $ 80.0 million . at march 31 , 2014 , cash balances totaled $ 163.5 million . working capital working capital at march 31 , 2014 , was about $ 1.2 billion , up $ 94.9 million from last year 's level . the $ 204.3 million decline in cash and cash equivalents was partially offset by higher accounts receivable from larger crops as well as higher inventories , up $ 66.3 million and $ 25.9 million , respectively . current liabilities declined by $ 167.6 million , largely due to lower current maturities of long-term obligations and decreased notes payable and overdrafts , down $ 95.0 million and $ 42.4 million , respectively . tobacco inventories at march 31 , 2014 , were up $ 16.4 million . the slight increase was largely due to a slow start to the buying and selling season in brazil . we usually finance inventory with a mix of cash , notes payable , and customer deposits , depending on our borrowing capabilities , interest rates , and exchange rates , as well as those of our customers . we generally do not purchase material quantities of tobacco on a speculative basis . however , when we contract directly with farmers , we are often obligated to buy all stalk positions , which may contain less marketable leaf styles . our uncommitted tobacco inventories increased by approximately $ 54.4 million to $ 171.4 million , or about 27 % of tobacco inventory , at march 31 , 2014. uncommitted inventories at march 31 , 2013 , were $ 117.0 million , which represented 19 % of tobacco inventory . the level of these uncommitted inventories is influenced by timing of farmer deliveries of new crops , as well as the timing of customer purchases . ``` Suspicious Activity Report : production volumes there are similar to last year 's crop , and the flue-cured crop quality is lower than average . our uncommitted inventories were higher at march 31 , 2014 , due in part to the slow start to the selling season in brazil . in africa , the markets have opened at a normal pace , and there are production volume increases in certain origins . at the same time , due to declines in the u.s. and western european retail cigarette sales , we may see some reductions in purchases of certain styles of tobacco , as customers adjust their inventory durations . given the increased production and potential customer inventory adjustments , we expect an oversupply of tobacco in fiscal year 2015 , which may lead to lower leaf prices that typify such cycles . our strategy remains focused on efficiently managing our business , meeting our customers ' and suppliers ' evolving needs , and returning value to our shareholders . we continue to invest in opportunities to improve our business and to promote sustainable , compliant leaf production . our long-term outlook for africa remains strong , consistent with our ongoing investments to both expand production this year in mozambique to serve our customers ' requirements and to enhance production efficiency in several other african origins . we also continue to seek out growth opportunities that enhance our value and help to sustain tobacco growers . last month , we announced our new food ingredient business which we believe is not only an attractive business opportunity , but provides tobacco growers with a new market for sweet potatoes , which are often grown in rotation with tobacco . we are excited about our 17 future and believe that we are well positioned to manage the cycles inherent in our industry while successfully executing on our strategy . results of operations amounts described as net income and earnings per diluted share in the following discussion are attributable to universal corporation and exclude earnings related to non-controlling interests in subsidiaries . the total for segment operating income referred to in the discussion below is a non-gaap financial measure . this measure is not a financial measure calculated in accordance with gaap and should not be considered as a substitute for net income , operating income , cash from operating activities or any other operating performance measure calculated in accordance with gaap , and it may not be comparable to similarly titled measures reported by other companies . we have provided a reconciliation of the total for segment operating income to consolidated operating income in note 15 . `` operating segments `` to the consolidated financial statements in item 8. we evaluate our segment performance excluding certain significant charges or credits . we believe this measure , which excludes these items that we believe are not indicative of our core operating results , provides investors with important information that is useful in understanding our business results and trends . fiscal year ended march 31 , 2014 , compared to the fiscal year ended march 31 , 2013 net income for the fiscal year ended march 31 , 2014 , was $ 149.0 million , or $ 5.25 per diluted share , compared with last year 's net income of $ 132.8 million , or $ 4.66 per diluted share . the current year 's results included a gain in the first fiscal quarter of $ 81.6 million before tax ( $ 53.1 million after tax , or $ 1.87 per diluted share ) , from the favorable outcome of litigation in brazil related to previous years ' excise tax credits . the annual results also included pretax restructuring costs of $ 6.7 million ( $ 0.15 per share ) and $ 4.1 million ( $ 0.06 per share ) for fiscal years 2014 and 2013 , respectively . segment operating income , which excludes those items , was $ 175.2 million for fiscal year 2014 , a decrease of $ 57.6 million from the prior year . that reduction was primarily attributable to weaker margins in brazil from higher green leaf costs , increased currency remeasurement and exchange costs , and the higher sales of carryover and uncommitted inventories in fiscal year 2013. revenues of $ 2.5 billion for fiscal year 2014 were up 3.3 % compared with the previous year , as slightly lower volumes were offset by higher prices . flue-cured and burley leaf tobacco operations within our flue-cured and burley leaf tobacco operations , operating income for our other regions segment for the fiscal year ended march 31 , 2014 , declined by 31 % to $ 133.4 million compared with the prior year . the reduction was driven primarily by results in south america , on lower volumes from fewer carryover shipments and weaker margins from higher green leaf prices . africa results were negatively impacted by a less favorable product mix despite increased shipment volumes from larger current crops . the weaker results in those regions were partly mitigated by improved results in europe as well as in asia , where trading volumes were higher . selling , general , and administrative expenses for the segment were significantly higher for the year , mostly due to unfavorable net foreign currency remeasurement and exchange comparisons , as current year losses compared to gains in fiscal year 2013 , mostly in africa , south america , and asia . revenues for this segment for the year increased by about 3 % to $ 1.9 billion compared with the previous year , reflecting modestly reduced volumes and higher green leaf prices . operating income for our north america segment for fiscal year 2014 was $ 23.2 million , up $ 3.5 million compared with the previous year , on a more favorable product mix and lower overheads , including postretirement benefit costs . story_separator_special_tag contractual obligations our contractual obligations as of march 31 , 2014 , were as follows : replace_table_token_4_th ( 1 ) includes interest payments . interest payments on $ 237.9 million of variable rate debt were estimated based on rates as of march 31 , 2014 . the company has entered interest rate swaps that effectively convert the interest payments on the $ 81.3 million outstanding balance of its amortizing bank term loan from variable to fixed . the fixed rate has been used to determine the contractual interest payments for all periods . in addition to principal and interest payments on notes payable and long-term debt , our contractual obligations include operating lease payments , inventory purchase commitments , and capital expenditure commitments . operating lease obligations represent minimum payments due under leases for various production , storage , distribution , and other facilities , as well as vehicles and equipment . tobacco inventory purchase obligations primarily represent contracts to purchase tobacco from farmers . the amounts shown above are estimates since actual quantities purchased will depend on crop yield , and prices will depend on the quality of the tobacco delivered . about 55 % of our crop year contracts to purchase tobacco are with farmers in brazil . we have partially funded our tobacco purchases in brazil and in other regions with advances to farmers and other suppliers , which totaled approximately $ 135 million , net of allowances , at march 31 , 2014 . in addition , we have guaranteed bank loans to farmers in brazil that relate to a portion of our tobacco purchase obligations there . at march 31 , 2014 , we were contingently liable under those guarantees for outstanding balances of approximately $ 22 million ( including accrued interest ) , and we had recorded a liability of approximately $ 2 million for the fair value of those guarantees . as tobacco is purchased and the related bank loans are repaid , our contingent liability is reduced . 23 critical accounting estimates and assumptions in preparing the financial statements in accordance with gaap , we are required to make estimates and assumptions that have an impact on the assets , liabilities , revenue , and expense amounts reported . these estimates can also affect our supplemental information disclosures , including information about contingencies , risks , and financial condition . we believe , given current facts and circumstances , that our estimates and assumptions are reasonable , adhere to gaap , and are consistently applied . however , changes in the assumptions used could result in a material adjustment to the financial statements . our critical accounting estimates and assumptions are in the following areas : inventories inventories of tobacco are valued at the lower of cost or market with cost determined under the specific cost method . raw materials are clearly identified at the time of purchase . we track the costs associated with raw materials in the final product lots , and maintain this identification through the time of sale . we also capitalize direct and indirect costs related to processing raw materials . this method of cost accounting is referred to as the specific cost or specific identification method . we write down inventory for changes in market value based upon assumptions related to future demand and market conditions if the indicated market value is below cost . future demand assumptions can be impacted by changes in customer sales , changes in customers ' inventory positions and policies , competitors ' pricing policies and inventory positions , changing customer needs , and varying crop sizes and qualities . market conditions that differ significantly from those assumed by management could result in additional write-downs . we experience inventory write-downs routinely . inventory write-downs in fiscal years 2014 , 2013 , and 2012 were $ 7.6 million , $ 1.5 million , and $ 8.3 million , respectively . advances to suppliers and guarantees of bank loans to suppliers in many sourcing origins , we provide tobacco growers with agronomy services and seasonal crop advances of , or for , seed , fertilizer , and other supplies . these advances are short term in nature and are customarily repaid upon delivery of tobacco to us . in several origins , we have also made long-term advances to tobacco farmers to finance curing barns and other farm infrastructure . in brazil , we also guarantee loans made to farmers for the same purposes . in some years , due to low crop yields and other factors , individual farmers may not deliver sufficient volumes of tobacco to repay maturing advances . in those cases , we may extend repayment of the advances into the following crop year or satisfy the guarantee by acquiring the loan from the bank . in either situation , we will incur losses whenever we are unable to recover the full amount of the loans and advances . at each reporting period , we must make estimates and assumptions in determining the valuation allowance for advances to farmers and the liability to accrue for our obligations under bank loan guarantees . at march 31 , 2014 , the gross balance of advances to suppliers totaled approximately $ 190 million , and the related valuation allowance totaled approximately $ 46 million . the fair value of the loan guarantees for farmers in brazil was a liability of approximately $ 2 million at march 31 , 2014 . recoverable value-added tax credits in many foreign countries , we pay significant amounts of value-added tax ( “ vat ” ) on purchases of unprocessed and processed tobacco , crop inputs , packing materials , and various other goods and services . in some countries , vat is a national tax , and in other countries it is assessed at the state level . items subject to vat vary from jurisdiction to jurisdiction , as do the rates at which the tax

securitization and warehouse credit facilities throughout the periods for which information is presented in this report , we have purchased automobile contracts with the intention of financing them on a long-term basis through securitizations , and on an interim basis through warehouse credit facilities . all such financings have involved identification of specific automobile contracts , sale of those automobile contracts ( and associated rights ) to one of our special-purpose subsidiaries , and issuance of asset-backed securities to fund the transactions . depending on the structure , these transactions may be accounted for under generally accepted accounting principles as sales of the automobile contracts or as secured financings . when structured to be treated as a secured financing for accounting purposes , the subsidiary is consolidated with us . accordingly , the sold automobile contracts and the related debt appear as assets and liabilities , respectively , on our consolidated balance sheet . we then periodically : ( i ) recognize interest and fee income on the contracts , ( ii ) recognize interest expense on the securities issued in the transaction , and ( iii ) record as expense a provision for credit losses on the contracts . from july 2003 through april 2008 , all of our securitizations were structured in this manner . in september 2008 , we securitized automobile contracts in a transaction that was in substance a sale , that was treated as a sale for accounting purposes , and in which we retained a residual interest in the automobile contracts . the remaining receivables from that september 2008 securitization were re-securitized in september 2010 in a structure that maintained sale treatment for accounting purposes . during 2011 , we completed three securitizations of approximately $ 335.6 million in newly originated contracts . these securitizations were were all structured as secured financings and represented our first securitizations of new contracts since 2008 . 31 when structured to be treated as a sale for accounting purposes , the assets and liabilities of the special-purpose subsidiary are not consolidated with us . accordingly , the transaction removes the sold automobile contracts from our consolidated balance sheet , the related debt does not appear as our debt , and our consolidated balance sheet shows , as an asset , a retained residual interest in the sold automobile contracts . the residual interest represents the discounted value of what we expect will be the excess of future collections on the automobile contracts over principal and interest due on the asset-backed securities . that residual interest appears on our consolidated balance sheet as `` residual interest in securitizations , `` and the determination of its value is dependent on our estimates of the future performance of the sold automobile contracts . of our managed portfolio outstanding at december 31 , 2011 , only our september 2010 securitization was structured to be treated as a sale for accounting purposes . credit risk retained whether a sale of automobile contracts in connection with a securitization or warehouse credit facility is treated as a secured financing or as a sale for financial accounting purposes , the related special-purpose subsidiary may be unable to release excess cash to us if the credit performance of the related automobile contracts falls short of pre-determined standards . such releases represent a material portion of the cash that we use to fund our operations . an unexpected deterioration in the performance of such automobile contracts could therefore have a material adverse effect on both our liquidity and our results of operations , regardless of whether such automobile contracts are treated for financial accounting purposes as having been sold or as having been financed . for estimation of the magnitude of such risk , it may be appropriate to look to the size of our `` managed portfolio , `` which represents both financed and sold automobile contracts as to which such credit risk is retained . our managed portfolio as of december 31 , 2011 was approximately $ 794.6 million , which includes a third party servicing portfolio of $ 33.5 million on which we earn only servicing fees and have no credit risk . critical accounting policies we believe that our accounting policies related to ( a ) allowance for finance credit losses , ( b ) amortization of deferred originations costs and acquisition fees , ( c ) term securitizations , ( d ) finance receivables and related debt measured at fair value and ( e ) income taxes are the most critical to understanding and evaluating our reported financial results . such policies are described below . allowance for finance credit losses in order to estimate an appropriate allowance for losses to be incurred on finance receivables , we use a loss allowance methodology commonly referred to as `` static pooling , `` which stratifies our finance receivable portfolio into separately identified pools based on the period of origination . using analytical and formula driven techniques , we estimate an allowance for finance credit losses , which we believe is adequate for probable credit losses that can be reasonably estimated in our portfolio of automobile contracts . for each monthly pool of contracts that we purchase , we begin establishing the allowance in the month of acquisition and increase it over the subsequent eleven months , through a provision for losses charged to our consolidated statement of operations . net losses incurred on finance receivables are charged to the allowance . we evaluate the adequacy of the allowance by examining current delinquencies , the characteristics of the portfolio , prospective liquidation values of the underlying collateral and general economic and market conditions . as circumstances change , our level of provisioning and or allowance may change as well . story_separator_special_tag as a result of recent net losses , we are in a three-year cumulative pretax loss position at december 31 , 2011. a cumulative loss position is considered significant negative evidence in assessing the realizability of a deferred tax asset . in determining the possible future realization of deferred tax assets , we have considered future taxable income from the following sources : ( a ) reversal of taxable temporary differences ; and ( b ) tax planning strategies available to us in accordance with ( asc 740 , “ income taxes ” ) that , if necessary , would be implemented to accelerate taxable income into years in which net operating losses might otherwise expire . our tax planning strategies include the prospective sale of certain assets such as finance receivables , residual interests in securitized finance receivables , charged off receivables and base servicing rights . the expected proceeds for such asset sales have been estimated based on our expectation of what buyers of the assets would consider to be reasonable assumptions for net cash flows and required rates of return for each of the various asset types . our estimates for net cash flows and required rates of return are subjective and inherently subject to future events which may significantly impact actual net proceeds we may receive from executing our tax planning strategies . nevertheless , we believe such asset sales can produce significant taxable income within the relevant carryforward period . such strategies could be implemented without significant impact on our core business or our ability to generate future growth . the costs related to the implementation of these tax strategies were considered in evaluating the amount of taxable income that could be generated in order to realize our deferred tax assets . 35 based upon the tax planning opportunities and other factors discussed below , we have concluded that the u.s. and state net operating loss carryforward periods provide enough time to utilize the deferred tax assets pertaining to the existing net operating loss carryforwards and any net operating loss that would be created by the reversal of the future net deductions which have not yet been taken on a tax return . although our core business has produced strong earnings in the past , even with intermittent loss periods resulting from economic cycles not unlike , although not as severe as , the current economic downturn , we have not used expected future taxable income in our evaluation of the value of our net deferred tax asset . we have taken steps to reduce our cost structure and have adjusted the contract interest rates and purchase prices applicable to our purchases of automobile contracts from dealers . we have been able to increase our acquisition fees and reduce our purchase prices because of lessened competition for our services . our estimates of taxable income that may be derived from the implementation of our tax planning strategies are forward-looking statements , and there can be no assurance that our estimates of such taxable income will be correct . factors discussed under `` risk factors , `` and in particular under the subheading `` risk factors forward-looking statements `` may affect whether such projections prove to be correct . we recognize interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated statement of operations . accrued interest and penalties are included within the related tax liability line in the consolidated balance sheet . uncertainty of capital markets and general economic conditions we depend upon the availability of warehouse credit facilities and access to long-term financing through the issuance of asset-backed securities collateralized by our automobile contracts . since 1994 , we have completed 53 term securitizations of approximately $ 7.1 billion in contracts . we conducted four term securitizations in 2006 , four in 2007 , two 2008 , one in 2010 and three in 2011. from july 2003 through april 2008 all of our securitizations were structured as secured financings . the second of our two securitization transactions in 2008 ( completed in september 2008 ) and our securitization in september 2010 ( a re-securitization of the remaining receivables from the september 2008 transaction ) were each in substance a sale of the related contracts , and have been treated as sales for financial accounting purposes . during 2011 , we completed three securitizations of approximately $ 335.6 million in newly originated contracts . these securitizations were were all structured as secured financings and represented our first securitizations of new contracts since 2008. from the fourth quarter of 2007 through the end of 2009 , we observed unprecedented adverse changes in the market for securitized pools of automobile contracts . these changes included reduced liquidity , and reduced demand for asset-backed securities , particularly for securities carrying a financial guaranty and for securities backed by sub-prime automobile receivables . moreover , many of the firms that previously provided financial guarantees , which were an integral part of our securitizations , suspended offering such guarantees . the adverse changes that took place in the market from the fourth quarter of 2007 through the end of 2009 caused us to conserve liquidity by significantly reducing our purchases of automobile contracts . however , since october 2009 , we have gradually increased our contract purchases by utilizing one $ 50 million revolving credit facility that we established in september 2009 and another $ 50 million term funding facility that we established in march 2010. in september 2010 we took advantage of improvement in the market for asset-backed securities by re-securitizing the remaining underlying receivables from our unrated september 2008 securitization . by doing so we were able to pay off the bonds associated with the september 2008 transaction and issue rated bonds with a significantly lower weighted average coupon . the september 2010 transaction was our first rated term securitization since 1993 that did not utilize a financial guaranty .

securitization trust debt . from july 2003 through april 2008 , we have , for financial accounting purposes , treated securitizations of automobile contracts as secured financings , and the asset-backed securities issued in such securitizations remain on our balance sheet as securitization trust debt . our september 2008 and the re-securitization of the remaining receivables from such transaction in september 2010 , were each structured as a sale for financial accounting purposes and the asset-backed securities issued in those transactions have not been and are not on our balance sheet . our three 2011 securitizations were all treated as secured financings . senior secured debt . from 1998 to 2005 , we entered into a series of financing transactions with levine leichtman capital partners ii , l.p. in july 2007 we repaid the final amounts due under these financing transactions . on june 30 , 2008 , we entered into a series of agreements pursuant to which a different but related lender levine leichtman capital partners iv , l.p. , purchased a $ 10 million five-year , fixed rate , senior secured note from us . the indebtedness is secured by substantially all of our assets , though not by the assets of our special-purpose financing subsidiaries . in july 2008 , in conjunction with the amendment of the combination term and revolving residual credit facility as discussed above , the lender purchased an additional $ 15 million note with substantially the same terms as the $ 10 million note . pursuant to the june 30 , 2008 securities purchase agreement , we issued to the lender 1,225,000 shares of common stock . in addition , we issued the lender two warrants : ( i ) warrants that we refer to as the fmv warrants , which are exercisable for 1,611,114 shares of our common stock , at an exercise price of $ 1.39818 per share , and ( ii ) warrants that we refer to as the n warrants , which are exercisable for 285,781 shares of our common stock , at a nominal exercise price .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```securitization trust debt . from july 2003 through april 2008 , we have , for financial accounting purposes , treated securitizations of automobile contracts as secured financings , and the asset-backed securities issued in such securitizations remain on our balance sheet as securitization trust debt . our september 2008 and the re-securitization of the remaining receivables from such transaction in september 2010 , were each structured as a sale for financial accounting purposes and the asset-backed securities issued in those transactions have not been and are not on our balance sheet . our three 2011 securitizations were all treated as secured financings . senior secured debt . from 1998 to 2005 , we entered into a series of financing transactions with levine leichtman capital partners ii , l.p. in july 2007 we repaid the final amounts due under these financing transactions . on june 30 , 2008 , we entered into a series of agreements pursuant to which a different but related lender levine leichtman capital partners iv , l.p. , purchased a $ 10 million five-year , fixed rate , senior secured note from us . the indebtedness is secured by substantially all of our assets , though not by the assets of our special-purpose financing subsidiaries . in july 2008 , in conjunction with the amendment of the combination term and revolving residual credit facility as discussed above , the lender purchased an additional $ 15 million note with substantially the same terms as the $ 10 million note . pursuant to the june 30 , 2008 securities purchase agreement , we issued to the lender 1,225,000 shares of common stock . in addition , we issued the lender two warrants : ( i ) warrants that we refer to as the fmv warrants , which are exercisable for 1,611,114 shares of our common stock , at an exercise price of $ 1.39818 per share , and ( ii ) warrants that we refer to as the n warrants , which are exercisable for 285,781 shares of our common stock , at a nominal exercise price . ``` Suspicious Activity Report : securitization and warehouse credit facilities throughout the periods for which information is presented in this report , we have purchased automobile contracts with the intention of financing them on a long-term basis through securitizations , and on an interim basis through warehouse credit facilities . all such financings have involved identification of specific automobile contracts , sale of those automobile contracts ( and associated rights ) to one of our special-purpose subsidiaries , and issuance of asset-backed securities to fund the transactions . depending on the structure , these transactions may be accounted for under generally accepted accounting principles as sales of the automobile contracts or as secured financings . when structured to be treated as a secured financing for accounting purposes , the subsidiary is consolidated with us . accordingly , the sold automobile contracts and the related debt appear as assets and liabilities , respectively , on our consolidated balance sheet . we then periodically : ( i ) recognize interest and fee income on the contracts , ( ii ) recognize interest expense on the securities issued in the transaction , and ( iii ) record as expense a provision for credit losses on the contracts . from july 2003 through april 2008 , all of our securitizations were structured in this manner . in september 2008 , we securitized automobile contracts in a transaction that was in substance a sale , that was treated as a sale for accounting purposes , and in which we retained a residual interest in the automobile contracts . the remaining receivables from that september 2008 securitization were re-securitized in september 2010 in a structure that maintained sale treatment for accounting purposes . during 2011 , we completed three securitizations of approximately $ 335.6 million in newly originated contracts . these securitizations were were all structured as secured financings and represented our first securitizations of new contracts since 2008 . 31 when structured to be treated as a sale for accounting purposes , the assets and liabilities of the special-purpose subsidiary are not consolidated with us . accordingly , the transaction removes the sold automobile contracts from our consolidated balance sheet , the related debt does not appear as our debt , and our consolidated balance sheet shows , as an asset , a retained residual interest in the sold automobile contracts . the residual interest represents the discounted value of what we expect will be the excess of future collections on the automobile contracts over principal and interest due on the asset-backed securities . that residual interest appears on our consolidated balance sheet as `` residual interest in securitizations , `` and the determination of its value is dependent on our estimates of the future performance of the sold automobile contracts . of our managed portfolio outstanding at december 31 , 2011 , only our september 2010 securitization was structured to be treated as a sale for accounting purposes . credit risk retained whether a sale of automobile contracts in connection with a securitization or warehouse credit facility is treated as a secured financing or as a sale for financial accounting purposes , the related special-purpose subsidiary may be unable to release excess cash to us if the credit performance of the related automobile contracts falls short of pre-determined standards . such releases represent a material portion of the cash that we use to fund our operations . an unexpected deterioration in the performance of such automobile contracts could therefore have a material adverse effect on both our liquidity and our results of operations , regardless of whether such automobile contracts are treated for financial accounting purposes as having been sold or as having been financed . for estimation of the magnitude of such risk , it may be appropriate to look to the size of our `` managed portfolio , `` which represents both financed and sold automobile contracts as to which such credit risk is retained . our managed portfolio as of december 31 , 2011 was approximately $ 794.6 million , which includes a third party servicing portfolio of $ 33.5 million on which we earn only servicing fees and have no credit risk . critical accounting policies we believe that our accounting policies related to ( a ) allowance for finance credit losses , ( b ) amortization of deferred originations costs and acquisition fees , ( c ) term securitizations , ( d ) finance receivables and related debt measured at fair value and ( e ) income taxes are the most critical to understanding and evaluating our reported financial results . such policies are described below . allowance for finance credit losses in order to estimate an appropriate allowance for losses to be incurred on finance receivables , we use a loss allowance methodology commonly referred to as `` static pooling , `` which stratifies our finance receivable portfolio into separately identified pools based on the period of origination . using analytical and formula driven techniques , we estimate an allowance for finance credit losses , which we believe is adequate for probable credit losses that can be reasonably estimated in our portfolio of automobile contracts . for each monthly pool of contracts that we purchase , we begin establishing the allowance in the month of acquisition and increase it over the subsequent eleven months , through a provision for losses charged to our consolidated statement of operations . net losses incurred on finance receivables are charged to the allowance . we evaluate the adequacy of the allowance by examining current delinquencies , the characteristics of the portfolio , prospective liquidation values of the underlying collateral and general economic and market conditions . as circumstances change , our level of provisioning and or allowance may change as well . story_separator_special_tag as a result of recent net losses , we are in a three-year cumulative pretax loss position at december 31 , 2011. a cumulative loss position is considered significant negative evidence in assessing the realizability of a deferred tax asset . in determining the possible future realization of deferred tax assets , we have considered future taxable income from the following sources : ( a ) reversal of taxable temporary differences ; and ( b ) tax planning strategies available to us in accordance with ( asc 740 , “ income taxes ” ) that , if necessary , would be implemented to accelerate taxable income into years in which net operating losses might otherwise expire . our tax planning strategies include the prospective sale of certain assets such as finance receivables , residual interests in securitized finance receivables , charged off receivables and base servicing rights . the expected proceeds for such asset sales have been estimated based on our expectation of what buyers of the assets would consider to be reasonable assumptions for net cash flows and required rates of return for each of the various asset types . our estimates for net cash flows and required rates of return are subjective and inherently subject to future events which may significantly impact actual net proceeds we may receive from executing our tax planning strategies . nevertheless , we believe such asset sales can produce significant taxable income within the relevant carryforward period . such strategies could be implemented without significant impact on our core business or our ability to generate future growth . the costs related to the implementation of these tax strategies were considered in evaluating the amount of taxable income that could be generated in order to realize our deferred tax assets . 35 based upon the tax planning opportunities and other factors discussed below , we have concluded that the u.s. and state net operating loss carryforward periods provide enough time to utilize the deferred tax assets pertaining to the existing net operating loss carryforwards and any net operating loss that would be created by the reversal of the future net deductions which have not yet been taken on a tax return . although our core business has produced strong earnings in the past , even with intermittent loss periods resulting from economic cycles not unlike , although not as severe as , the current economic downturn , we have not used expected future taxable income in our evaluation of the value of our net deferred tax asset . we have taken steps to reduce our cost structure and have adjusted the contract interest rates and purchase prices applicable to our purchases of automobile contracts from dealers . we have been able to increase our acquisition fees and reduce our purchase prices because of lessened competition for our services . our estimates of taxable income that may be derived from the implementation of our tax planning strategies are forward-looking statements , and there can be no assurance that our estimates of such taxable income will be correct . factors discussed under `` risk factors , `` and in particular under the subheading `` risk factors forward-looking statements `` may affect whether such projections prove to be correct . we recognize interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated statement of operations . accrued interest and penalties are included within the related tax liability line in the consolidated balance sheet . uncertainty of capital markets and general economic conditions we depend upon the availability of warehouse credit facilities and access to long-term financing through the issuance of asset-backed securities collateralized by our automobile contracts . since 1994 , we have completed 53 term securitizations of approximately $ 7.1 billion in contracts . we conducted four term securitizations in 2006 , four in 2007 , two 2008 , one in 2010 and three in 2011. from july 2003 through april 2008 all of our securitizations were structured as secured financings . the second of our two securitization transactions in 2008 ( completed in september 2008 ) and our securitization in september 2010 ( a re-securitization of the remaining receivables from the september 2008 transaction ) were each in substance a sale of the related contracts , and have been treated as sales for financial accounting purposes . during 2011 , we completed three securitizations of approximately $ 335.6 million in newly originated contracts . these securitizations were were all structured as secured financings and represented our first securitizations of new contracts since 2008. from the fourth quarter of 2007 through the end of 2009 , we observed unprecedented adverse changes in the market for securitized pools of automobile contracts . these changes included reduced liquidity , and reduced demand for asset-backed securities , particularly for securities carrying a financial guaranty and for securities backed by sub-prime automobile receivables . moreover , many of the firms that previously provided financial guarantees , which were an integral part of our securitizations , suspended offering such guarantees . the adverse changes that took place in the market from the fourth quarter of 2007 through the end of 2009 caused us to conserve liquidity by significantly reducing our purchases of automobile contracts . however , since october 2009 , we have gradually increased our contract purchases by utilizing one $ 50 million revolving credit facility that we established in september 2009 and another $ 50 million term funding facility that we established in march 2010. in september 2010 we took advantage of improvement in the market for asset-backed securities by re-securitizing the remaining underlying receivables from our unrated september 2008 securitization . by doing so we were able to pay off the bonds associated with the september 2008 transaction and issue rated bonds with a significantly lower weighted average coupon . the september 2010 transaction was our first rated term securitization since 1993 that did not utilize a financial guaranty .

38 other business highlights for 2016 include the following : we continued to invest in strategic growth initiatives in 2016 to better position us for longer term success . we launched 12 u.s. listed etfs capitalizing on macro-investment themes and diversifying our product offerings . these launches included dynamic currency hedged etfs , such as the dynamic currency hedged international equity etf ( ddwm ) , which was the most successful etf launched in the u.s. in 2016 based on total aum , the industry 's first smart beta corporate bond suite and a collateralized put write strategy etf on the s & p 500 index . we also invested in marketing and sales related initiatives to support our existing etfs as well as new etf launches . headcount increased by 32 globally , predominantly in sales and functions supporting sales , including research and marketing . we executed on our global growth plans by establishing an office in toronto and distributing a select range of locally listed etfs in canada . during 2016 , we launched six new canadian etfs , four new boost etps and 4 new wisdomtree ucits etfs . we also entered into a global product partnership with icbc credit suisse asset management ( international ) company limited to launch , market and distribute etfs that track the s & p china 500 index . a luxembourg ucits etf listed in europe marked the first product in this collaboration . in november 2016 , we made a $ 20.0 million strategic investment for a 36 % fully diluted equity interest in advisorengine , formerly known as vanare , an end-to-end digital wealth management platform which enables individual customization of investment philosophies . we and advisorengine also entered into a strategic agreement whereby our asset allocation models are made available through advisorengine 's open architecture platform and we actively introduce the platform to our distribution network . advisorengine offers an array of distinct product offerings that provide advisors with new client prospecting tools , online client onboarding , institutional grade analytics , trading , performance reporting and billing . its technology is distinctive in that it provides these features from an advisor-centric point of view , allowing advisors to deepen their engagement with clients and demonstrate the value of the advisory relationship . in may 2016 , we accelerated the buyout of the remaining minority interest in our european business and made management changes to drive continued growth . we returned approximately $ 83.0 million to our stockholders through our ongoing quarterly cash dividend and stock buybacks . business segments we operate as an etp sponsor and asset manager providing investment advisory services in the u.s. , europe , canada and japan . these activities are reported in our u.s. business and international business segments , as follows : u.s. business segment : our u.s. business and japan sales office , which primarily engages in selling our u.s. listed etfs to japanese institutions ; and international business segment : our european business which commenced in april 2014 in connection with our acquisition of boost and our canadian business which launched its first six etfs in july 2016 . 39 the following charts reflect key operating and financial metrics for our businesses : u.s. business segment international business segment consolidated operating results 40 background market environment the following chart reflects the annual returns of the broad based equity indexes over the last three years . as the chart reflects , the broad based equity market indexes have been volatile since 2013. source : factset the vast majority of our global aum is in u.s. listed etfs . the u.s. etf industry also has been experiencing generally higher flows as the charts below reflect . in 2016 , domestic equities gathered the majority of net inflows for the year : source : investment company institute . 41 industry developments the etf industry is becoming significantly more competitive . there has been increased price competition in not only commoditized product categories such as traditional , market capitalization weighted index exposures , but also in fundamental or other non-market cap weighted or factor-based exposures . in addition , existing players have broadened their suite of products to offer different strategies that are , in some cases , similar to ours . lastly , large traditional asset managers are also launching etfs , some with similar strategies to ours . we do not know what effect , if any , increased price competition or the launch of these etfs may have on our business . within the etf industry , being a first mover , or one of the first providers of etfs in a particular asset class , can be a significant advantage , as the first etf in a category to attract scale in aum and trading liquidity is generally viewed as the most attractive etf . we believe that our early launch of etfs in a number of asset classes or strategies , including fundamental weighting and currency hedging , positions us well to maintain our position as one of the leaders of the etf industry . additionally , we believe our affiliated indexing or “self-indexing” model enables us to launch proprietary products which do not have exact competition . in april 2016 , the dol published its final rule to address conflicts of interest in retirement advice , commonly referred to as the fiduciary rule . the fiduciary rule is scheduled to become effective in april 2017. however , in february 2017 , president trump issued a presidential memorandum instructing the dol to conduct an economic and legal analysis on the rule 's potential impact . as a result , the dol has formally proposed a 60-day delay to the effective date . also in february 2017 , a texas district court upheld the rule . in response to the fiduciary rule , industry experts predicted an acceleration in the shift from commission-based to fee-based advisory models . story_separator_special_tag we had 86 u.s. listed etfs and 76 european listed products at the end of 2015 compared to 94 u.s. listed etfs , 84 european listed products and six canadian listed etfs at the end of 2016. marketing and advertising marketing and advertising expense increased 17.0 % from $ 13.4 million in 2015 to $ 15.6 million in 2016 primarily due to higher levels of advertising related activities . sales and business development sales and business development expense increased 36.4 % from $ 9.2 million in 2015 to $ 12.5 million in 2016 primarily due to higher spending on sales related activities . professional and consulting fees professional and consulting fees decreased 5.3 % from $ 7.1 million in 2015 to $ 6.7 million in 2016. this decrease was primarily due to lower fees for strategic consulting services and lower recruiting fees partly offset by fees associated with our office in canada that we established in april 2016. occupancy , communications and equipment occupancy , communications and equipment expense increased 21.2 % from $ 4.3 million in 2015 to $ 5.2 million in 2016 primarily due to technology initiatives and higher costs for our office space in japan which was opened in the second quarter of 2015 . 51 depreciation and amortization depreciation and amortization expense increased 29.7 % from $ 1.0 million in 2015 to $ 1.3 million in 2016 primarily due to expenses of our japan office that we opened in the second quarter of 2015 and higher amortization for leasehold improvements to our new york office space . third party sharing arrangements third party sharing arrangements expense increased 15.7 % from $ 2.4 million in 2015 to $ 2.8 million in 2016 primarily due to fees we pay to list our etfs on third party platforms and higher fees to our marketing agent in latin america . goodwill impairment a goodwill impairment charge of $ 1.7 million was recorded during the three months ended december 31 , 2016 , which was related to an interim impairment test performed on the goodwill recognized in connection with the acquisition of a majority stake in our european business in april 2014. see note 16 to our consolidated financial statements . acquisition payment acquisition payment expense increased 208.4 % from $ 2.2 million in 2015 to $ 6.7 million in 2016 as a result of the acceleration of the buyout of the remaining minority interest in our european business . other other expenses increased 11.7 % from $ 6.2 million in 2015 to $ 6.9 million in 2016 primarily due to expenses of our japan office that we opened in the second quarter of 2015 and increases other general and administrative expenses . income tax expense our effective income tax rate for the year ended december 31 , 2016 was 52.9 % , which resulted in income tax expense of $ 29.4 million . our tax rate differed from the federal statutory rate of 35 % primarily due to a valuation allowance on our foreign net operating losses , the acquisition payment expense and goodwill impairment charge ( both of which are non-deductible ) and state and local income taxes . our effective income tax rate for the year ended december 31 , 2015 was 41.6 % , which resulted in income tax expense of $ 57.1 million . our tax rate differed from the federal statutory rate of 35 % primarily due to state and local income taxes , foreign net operating losses and the acquisition payment expense ( which is non-deductible ) . 52 year ended december 31 , 2015 compared to year ended december 31 , 2014 overview replace_table_token_11_th our global aum increased 32.8 % from $ 39.5 billion at the end of 2014 to $ 52.4 billion at the end of 2015. this change was primarily driven by changes in our u.s. listed aum which increased 31.5 % from $ 39.3 billion at the end of 2014 to $ 51.6 billion at the end of 2015 due to $ 16.9 billion of net inflows partly offset by market depreciation . we reported pre-tax income of $ 137.2 million in 2015 , an increase of 86.5 % from 2014 primarily due to higher revenues , and we reported net income of $ 80.1 million in 2015 compared to $ 61.1 million in 2014. revenues replace_table_token_12_th advisory fees advisory fees revenues increased 63.0 % from $ 182.8 million in 2014 to $ 297.9 million in 2015 due to higher average aum primarily resulting from net inflows to our currency hedged european equity etf ( hedj ) partly offset by market depreciation . the average u.s. advisory fee earned increased from 0.52 % in 2014 to 0.53 % in 2015 due to inflows into our higher fee etfs . other income other income increased 5.5 % from 2014 to 2015. this increase was primarily due to higher interest income from our growing cash balances and higher index licensing fees partly offset by losses on foreign currencies . 53 expenses replace_table_token_13_th replace_table_token_14_th compensation and benefits compensation and benefits expense increased 78.6 % from $ 41.0 million in 2014 to $ 73.2 million in 2015. this increase was primarily due to higher accrued incentive compensation due to our record inflow levels , increased headcount related expenses to support our growth and higher stock-based compensation due to equity awards granted to our employees as part of 2014 compensation . headcount of our u.s. business segment was 101 and our international business segment was 23 at the end of 2014 compared to 143 and 34 , respectively , at the end of 2015. fund management and administration fund management and administration expense increased 24.4 % from $ 34.4 million in 2014 to $ 42.8 million in 2015. this increase was primarily due to costs associated with higher average u.s. listed aum ; printing and mailing fees as a result of additional holders of our u.s. listed etfs ; and other costs associated with additional

liquidity and capital resources the following table summarizes key data regarding our liquidity , capital resources and use of capital to fund our operations : replace_table_token_20_th replace_table_token_21_th liquidity we consider our available liquidity to be our liquid assets less our liabilities . liquid assets consist of cash and cash equivalents , securities owned , at fair value , securities held-to-maturity and accounts receivable . cash and cash equivalents include cash on hand with financial institutions and all highly liquid investments with an original maturity of 90 days or less at the time of purchase . our securities owned , at fair value are highly liquid investments . certain securities are accounted for as held-to-maturity securities and we have the intention and ability to hold them to maturity . however , these securities are also readily traded and , if needed , could be sold for liquidity . accounts receivable are current assets and primarily represent receivables from advisory fees we earn from our etps . our liabilities consist primarily of payments owed to vendors and third parties in the normal course of business as well as accrued year end compensation for employees . cash and cash equivalents decreased $ 117.3 million in 2016 due to $ 63.6 million of cash and cash equivalents invested in an available-for-sale portfolio of short-duration investment grade corporate bonds , $ 43.7 million used to pay dividends on our common stock , $ 39.4 million used to repurchase our common stock , $ 20.0 million invested in advisorengine , $ 15.5 million used to purchase held-to-maturity securities , $ 11.8 million used in connection with the greenhaven acquisition and $ 0.9 million of other activities . these decreases were partly offset by $ 54.9 million of cash generated by our operating activities , $ 16.7 million from held-to-maturity securities called or maturing during the year and $ 6.0 million from sales and maturities of securities available-for-sale .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 key data regarding our liquidity , capital resources and use of capital to fund our operations : replace_table_token_20_th replace_table_token_21_th liquidity we consider our available liquidity to be our liquid assets less our liabilities . liquid assets consist of cash and cash equivalents , securities owned , at fair value , securities held-to-maturity and accounts receivable . cash and cash equivalents include cash on hand with financial institutions and all highly liquid investments with an original maturity of 90 days or less at the time of purchase . our securities owned , at fair value are highly liquid investments . certain securities are accounted for as held-to-maturity securities and we have the intention and ability to hold them to maturity . however , these securities are also readily traded and , if needed , could be sold for liquidity . accounts receivable are current assets and primarily represent receivables from advisory fees we earn from our etps . our liabilities consist primarily of payments owed to vendors and third parties in the normal course of business as well as accrued year end compensation for employees . cash and cash equivalents decreased $ 117.3 million in 2016 due to $ 63.6 million of cash and cash equivalents invested in an available-for-sale portfolio of short-duration investment grade corporate bonds , $ 43.7 million used to pay dividends on our common stock , $ 39.4 million used to repurchase our common stock , $ 20.0 million invested in advisorengine , $ 15.5 million used to purchase held-to-maturity securities , $ 11.8 million used in connection with the greenhaven acquisition and $ 0.9 million of other activities . these decreases were partly offset by $ 54.9 million of cash generated by our operating activities , $ 16.7 million from held-to-maturity securities called or maturing during the year and $ 6.0 million from sales and maturities of securities available-for-sale . ``` Suspicious Activity Report : 38 other business highlights for 2016 include the following : we continued to invest in strategic growth initiatives in 2016 to better position us for longer term success . we launched 12 u.s. listed etfs capitalizing on macro-investment themes and diversifying our product offerings . these launches included dynamic currency hedged etfs , such as the dynamic currency hedged international equity etf ( ddwm ) , which was the most successful etf launched in the u.s. in 2016 based on total aum , the industry 's first smart beta corporate bond suite and a collateralized put write strategy etf on the s & p 500 index . we also invested in marketing and sales related initiatives to support our existing etfs as well as new etf launches . headcount increased by 32 globally , predominantly in sales and functions supporting sales , including research and marketing . we executed on our global growth plans by establishing an office in toronto and distributing a select range of locally listed etfs in canada . during 2016 , we launched six new canadian etfs , four new boost etps and 4 new wisdomtree ucits etfs . we also entered into a global product partnership with icbc credit suisse asset management ( international ) company limited to launch , market and distribute etfs that track the s & p china 500 index . a luxembourg ucits etf listed in europe marked the first product in this collaboration . in november 2016 , we made a $ 20.0 million strategic investment for a 36 % fully diluted equity interest in advisorengine , formerly known as vanare , an end-to-end digital wealth management platform which enables individual customization of investment philosophies . we and advisorengine also entered into a strategic agreement whereby our asset allocation models are made available through advisorengine 's open architecture platform and we actively introduce the platform to our distribution network . advisorengine offers an array of distinct product offerings that provide advisors with new client prospecting tools , online client onboarding , institutional grade analytics , trading , performance reporting and billing . its technology is distinctive in that it provides these features from an advisor-centric point of view , allowing advisors to deepen their engagement with clients and demonstrate the value of the advisory relationship . in may 2016 , we accelerated the buyout of the remaining minority interest in our european business and made management changes to drive continued growth . we returned approximately $ 83.0 million to our stockholders through our ongoing quarterly cash dividend and stock buybacks . business segments we operate as an etp sponsor and asset manager providing investment advisory services in the u.s. , europe , canada and japan . these activities are reported in our u.s. business and international business segments , as follows : u.s. business segment : our u.s. business and japan sales office , which primarily engages in selling our u.s. listed etfs to japanese institutions ; and international business segment : our european business which commenced in april 2014 in connection with our acquisition of boost and our canadian business which launched its first six etfs in july 2016 . 39 the following charts reflect key operating and financial metrics for our businesses : u.s. business segment international business segment consolidated operating results 40 background market environment the following chart reflects the annual returns of the broad based equity indexes over the last three years . as the chart reflects , the broad based equity market indexes have been volatile since 2013. source : factset the vast majority of our global aum is in u.s. listed etfs . the u.s. etf industry also has been experiencing generally higher flows as the charts below reflect . in 2016 , domestic equities gathered the majority of net inflows for the year : source : investment company institute . 41 industry developments the etf industry is becoming significantly more competitive . there has been increased price competition in not only commoditized product categories such as traditional , market capitalization weighted index exposures , but also in fundamental or other non-market cap weighted or factor-based exposures . in addition , existing players have broadened their suite of products to offer different strategies that are , in some cases , similar to ours . lastly , large traditional asset managers are also launching etfs , some with similar strategies to ours . we do not know what effect , if any , increased price competition or the launch of these etfs may have on our business . within the etf industry , being a first mover , or one of the first providers of etfs in a particular asset class , can be a significant advantage , as the first etf in a category to attract scale in aum and trading liquidity is generally viewed as the most attractive etf . we believe that our early launch of etfs in a number of asset classes or strategies , including fundamental weighting and currency hedging , positions us well to maintain our position as one of the leaders of the etf industry . additionally , we believe our affiliated indexing or “self-indexing” model enables us to launch proprietary products which do not have exact competition . in april 2016 , the dol published its final rule to address conflicts of interest in retirement advice , commonly referred to as the fiduciary rule . the fiduciary rule is scheduled to become effective in april 2017. however , in february 2017 , president trump issued a presidential memorandum instructing the dol to conduct an economic and legal analysis on the rule 's potential impact . as a result , the dol has formally proposed a 60-day delay to the effective date . also in february 2017 , a texas district court upheld the rule . in response to the fiduciary rule , industry experts predicted an acceleration in the shift from commission-based to fee-based advisory models . story_separator_special_tag we had 86 u.s. listed etfs and 76 european listed products at the end of 2015 compared to 94 u.s. listed etfs , 84 european listed products and six canadian listed etfs at the end of 2016. marketing and advertising marketing and advertising expense increased 17.0 % from $ 13.4 million in 2015 to $ 15.6 million in 2016 primarily due to higher levels of advertising related activities . sales and business development sales and business development expense increased 36.4 % from $ 9.2 million in 2015 to $ 12.5 million in 2016 primarily due to higher spending on sales related activities . professional and consulting fees professional and consulting fees decreased 5.3 % from $ 7.1 million in 2015 to $ 6.7 million in 2016. this decrease was primarily due to lower fees for strategic consulting services and lower recruiting fees partly offset by fees associated with our office in canada that we established in april 2016. occupancy , communications and equipment occupancy , communications and equipment expense increased 21.2 % from $ 4.3 million in 2015 to $ 5.2 million in 2016 primarily due to technology initiatives and higher costs for our office space in japan which was opened in the second quarter of 2015 . 51 depreciation and amortization depreciation and amortization expense increased 29.7 % from $ 1.0 million in 2015 to $ 1.3 million in 2016 primarily due to expenses of our japan office that we opened in the second quarter of 2015 and higher amortization for leasehold improvements to our new york office space . third party sharing arrangements third party sharing arrangements expense increased 15.7 % from $ 2.4 million in 2015 to $ 2.8 million in 2016 primarily due to fees we pay to list our etfs on third party platforms and higher fees to our marketing agent in latin america . goodwill impairment a goodwill impairment charge of $ 1.7 million was recorded during the three months ended december 31 , 2016 , which was related to an interim impairment test performed on the goodwill recognized in connection with the acquisition of a majority stake in our european business in april 2014. see note 16 to our consolidated financial statements . acquisition payment acquisition payment expense increased 208.4 % from $ 2.2 million in 2015 to $ 6.7 million in 2016 as a result of the acceleration of the buyout of the remaining minority interest in our european business . other other expenses increased 11.7 % from $ 6.2 million in 2015 to $ 6.9 million in 2016 primarily due to expenses of our japan office that we opened in the second quarter of 2015 and increases other general and administrative expenses . income tax expense our effective income tax rate for the year ended december 31 , 2016 was 52.9 % , which resulted in income tax expense of $ 29.4 million . our tax rate differed from the federal statutory rate of 35 % primarily due to a valuation allowance on our foreign net operating losses , the acquisition payment expense and goodwill impairment charge ( both of which are non-deductible ) and state and local income taxes . our effective income tax rate for the year ended december 31 , 2015 was 41.6 % , which resulted in income tax expense of $ 57.1 million . our tax rate differed from the federal statutory rate of 35 % primarily due to state and local income taxes , foreign net operating losses and the acquisition payment expense ( which is non-deductible ) . 52 year ended december 31 , 2015 compared to year ended december 31 , 2014 overview replace_table_token_11_th our global aum increased 32.8 % from $ 39.5 billion at the end of 2014 to $ 52.4 billion at the end of 2015. this change was primarily driven by changes in our u.s. listed aum which increased 31.5 % from $ 39.3 billion at the end of 2014 to $ 51.6 billion at the end of 2015 due to $ 16.9 billion of net inflows partly offset by market depreciation . we reported pre-tax income of $ 137.2 million in 2015 , an increase of 86.5 % from 2014 primarily due to higher revenues , and we reported net income of $ 80.1 million in 2015 compared to $ 61.1 million in 2014. revenues replace_table_token_12_th advisory fees advisory fees revenues increased 63.0 % from $ 182.8 million in 2014 to $ 297.9 million in 2015 due to higher average aum primarily resulting from net inflows to our currency hedged european equity etf ( hedj ) partly offset by market depreciation . the average u.s. advisory fee earned increased from 0.52 % in 2014 to 0.53 % in 2015 due to inflows into our higher fee etfs . other income other income increased 5.5 % from 2014 to 2015. this increase was primarily due to higher interest income from our growing cash balances and higher index licensing fees partly offset by losses on foreign currencies . 53 expenses replace_table_token_13_th replace_table_token_14_th compensation and benefits compensation and benefits expense increased 78.6 % from $ 41.0 million in 2014 to $ 73.2 million in 2015. this increase was primarily due to higher accrued incentive compensation due to our record inflow levels , increased headcount related expenses to support our growth and higher stock-based compensation due to equity awards granted to our employees as part of 2014 compensation . headcount of our u.s. business segment was 101 and our international business segment was 23 at the end of 2014 compared to 143 and 34 , respectively , at the end of 2015. fund management and administration fund management and administration expense increased 24.4 % from $ 34.4 million in 2014 to $ 42.8 million in 2015. this increase was primarily due to costs associated with higher average u.s. listed aum ; printing and mailing fees as a result of additional holders of our u.s. listed etfs ; and other costs associated with additional

during the fourth quarter of 2010 , we identified $ 15.4 million of reimbursable costs and fees received from clients associated with certain contractual arrangements acquired in connection with the acquisition of tsys total debt management that were incorrectly recorded on a net basis , as an offset to selling , general and administrative expenses in the statement of operations for the year ended december 31 , 2009. revenue for the year ended december 30 31 , 2009 should have included these reimbursable costs and fees , with an equal and offsetting amount charged to operating expenses , due to the fact that we acted as principal and assumed overall risk in the transactions under these contractual arrangements . although we concluded that the impact was not material to the 2009 financial statements , revenue and operating expenses have been revised to reflect the $ 15.4 million reimbursable costs and fees in both revenue and operating expenses in the statement of operations for the year ended december 31 , 2009. the challenging economic environment in the u.s. has impacted our business over the course of 2009 and 2010. factors such as reduced availability of credit for consumers , a depressed real estate market , high unemployment and other factors have had a negative impact on the ability and willingness of consumers to pay their debts and a negative impact on our clients ' businesses , which has adversely affected our results of operations , collections and revenue . further changes to the economic conditions in the u.s. , either positive or negative , could have a significant impact on our business , including , but not limited to : · further impairment charges to our goodwill , trade name and purchased accounts receivable ; · fluctuations in the volume of placements of accounts and the collectability of those accounts for our arm contingency fee based services ; · volume fluctuations in our arm fixed fee based services ; · volume fluctuations in our crm services ; and , · variability in the collectibility of existing portfolios . we have grown through both acquisitions as well as internal growth . the following table lists the companies we have acquired in the past three years ( purchase price in millions ) : replace_table_token_4_th in october 2009 , we sold our print and mail business for approximately $ 18.7 million in cash . prior to the acquisition of sst on january 2 , 2008 , sst was a wholly owned subsidiary of jpmorgan chase & co. , referred to as jpm . jpm also wholly owns one equity partners , which has had a controlling interest in us since our “going-private” transaction on november 15 , 2006 , referred to as the transaction . transfers of net assets or exchanges of equity interests between entities under common control are accounted for similar to the pooling-of-interests method ( “as-if pooling-of-interests” ) in that the entity that receives the net assets or the equity interests initially recognizes the assets and liabilities transferred at their carrying amounts in the accounts of the transferring entity at the date of transfer . because nco and sst were under common control at the time of the sst acquisition , the transfer of assets and liabilities of sst were accounted for at historical cost in a manner similar to a pooling of interests . for financial accounting purposes , the acquisition was viewed as a change in reporting entity and , as a result , required restatement of our financial statements for all periods subsequent to november 15 , 2006 , the date of the transaction and the date at which common control of nco and sst by jpm commenced . critical accounting policies and estimates general the preparation of consolidated financial statements in conformity with accounting principles generally accepted in the united states requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes . actual results could differ from those estimates . we believe the following accounting policies and estimates are the most critical and could have the most impact on our results of operations . for a discussion of these and other accounting policies , see note 2 in our notes to consolidated financial statements . as a result of the transaction , the majority of our assets and liabilities , including our portfolio of accounts 31 receivable , were adjusted to their fair value as of the date of the transaction . we made significant assumptions in determining the fair value of intangible assets and other assets and liabilities in connection with purchase accounting . additionally , a portion of the equity related to our management stockholders was recorded at the stockholder 's predecessor basis and a corresponding portion of the acquired assets was reduced accordingly . goodwill , other intangible assets and purchase accounting assets acquired and liabilities assumed must be recorded at their fair value at the date of acquisition . our balance sheet includes amounts designated as “goodwill” , “trade name” and “customer relationships and other intangible assets.” goodwill represents the excess of the purchase price over the fair value of the net assets of acquired businesses . trade name represents the fair value of the nco name . other intangible assets consist primarily of customer relationships , which represent the information and regular contact we have with our clients , and non-compete agreements . as of december 31 , 2010 , our balance sheet included goodwill , trade name and other intangibles that represented 38.8 percent , 6.7 percent and 15.8 percent of total assets , respectively , and 597.9 percent , 103.9 percent and 242.6 percent of stockholders ' equity , respectively . goodwill and trade name are tested for impairment at least annually and as triggering events occur . story_separator_special_tag depreciation and amortization decreased to $ 108.8 million in 2010 , from $ 119.6 million in 2009. this decrease was primarily attributable to lower depreciation expense resulting from more assets becoming fully depreciated , as well as lower amortization of customer relationships and other intangible assets due to certain intangible assets becoming fully amortized during 2010. impairment of intangible assets . during the fourth quarter of 2010 , the company recorded goodwill impairment charges of $ 57.0 million in the crm segment . during the fourth quarter of 2009 , the company recorded goodwill impairment charges of $ 24.7 million in the crm segment , and customer relationship impairment charges of $ 5.3 million in the portfolio management segment . restructuring charges . we incurred restructuring charges of $ 18.3 million in 2010 , which related to streamlining the cost structure of our operations and our decision to limit purchases in the portfolio management business . the charges consisted primarily of costs associated with the closing of redundant facilities and severance costs . this compares to $ 10.9 million of restructuring charges in 2009 , which also related to the streamlining of our cost structure . other income ( expense ) . interest expense decreased to $ 90.3 million for 2010 , from $ 99.2 million for 2009. interest expense for 2010 included $ 8.3 million of losses , compared to $ 14.1 of losses in 2009 , from interest rate swap agreements and embedded derivatives . the remaining decrease in interest expense was primarily due to lower debt balances during 2010. other income ( expense ) , net for 2010 and 2009 included approximately $ 1.2 million and $ 7.0 million , respectively , of net gains resulting from the settlement of certain foreign exchange contracts . other income 36 ( expense ) for 2009 also included a $ 5.0 million loss from writing down one of our notes receivable and a $ 4.4 million gain on sale of our print and mail business . income tax expense ( benefit ) . for 2010 , we recorded income tax expense of $ 6.9 million on a pre-tax loss of $ 148.8 million , or an effective income tax rate of ( 4.6 ) percent . for 2009 , we recorded an income tax benefit of $ 1.2 million on a pre-tax loss of $ 89.3 million , or an effective income tax rate of 1.3 percent . the change in the effective income tax rate was due primarily to the recognition of a valuation allowance on certain domestic net deferred tax assets , and income tax expense to be paid in state and foreign jurisdictions . year ended december 31 , 2009 compared to year ended december 31 , 2008 revenue . revenue increased $ 66.2 million , or 4.4 percent , to $ 1,579.4 million for 2009 , from $ 1,513.1 million in 2008. revenue for the year ended december 31 , 2009 was reduced by a $ 21.5 million impairment charge recorded to increase the valuation allowance against the carrying value of the portfolios of purchased accounts receivable , compared to an impairment charge of $ 98.9 million in 2008. revenue by segment ( amounts in thousands ) : replace_table_token_9_th arm 's revenue for 2009 included $ 60.5 million of intercompany revenue earned on services performed for portfolio management and crm 's revenue for 2009 included $ 5.1 million of intercompany revenue earned on services performed for arm , which were eliminated upon consolidation . arm 's revenue for 2008 included $ 82.8 million of intercompany revenue earned on services performed for portfolio management and crm 's revenue for 2008 included $ 2.9 million of intercompany revenue earned on services performed for arm , which were eliminated upon consolidation . the increase in arm 's revenue was primarily attributable to increased volume from new and existing clients in both first-party ( early stage ) and contingent collections as well as a full year of revenue from the osi acquisition completed on february 29 , 2008. this increase was offset in part by the weaker collection environment during 2009 and a $ 22.3 million decrease in fees from collection services performed for portfolio management . the decrease in crm 's revenue was primarily due to lower volumes from certain existing clients attributable to the impact of the economy on the clients ' business , partially offset by increased client volumes related to the implementation of new contracts during 2008 and 2009. portfolio management 's collections , excluding all portfolio sales , decreased $ 48.4 million , or 24.6 percent , to $ 148.4 million in 2009 , from $ 196.8 million in 2008. revenue for 2009 was reduced by a $ 21.5 million impairment charge recorded to increase the valuation allowance against the carrying value of the portfolios of purchased accounts receivable , due to the impact of the deteriorating economic conditions on cash collected and lower estimates of future collections , compared to an impairment charge of $ 98.2 million in the prior year . excluding the effect of the impairment charges as well as portfolio sales , portfolio management 's revenue represented 46.0 percent of collections in 2009 , as compared to 57.1 percent of collections in 2008. the remaining decrease in revenue and collections was attributable to lower portfolio purchases and the affect of the weaker collection environment during 2009. portfolio sales revenue for 2009 was $ 361,000 compared to $ 3.0 million for 2008. payroll and related expenses . payroll and related expenses decreased $ 63.6 million to $ 781.9 million in 2009 , from $ 845.5 million in 2008 , and decreased as a percentage of revenue to 49.5 percent from 55.9 percent . 37 payroll and related expenses by segment ( amounts in thousands ) : replace_table_token_10_th the decrease in arm 's payroll and related expenses as a percentage of revenue was primarily due to the integration efforts following the acquisition of

cash flows from operating activities . cash provided by operating activities was $ 43.1 million in 2010 , compared to $ 98.5 million in 2009. the decrease in cash provided by operating activities was primarily attributable to lower operating results for 2010 , as well as a decrease in accounts receivable , trade of $ 5.6 million for 2010 compared to $ 43.9 million for 2009 , resulting from the collection of a large outstanding receivable balance during 2009. cash provided by operating activities was $ 98.5 million in 2009 , compared to $ 93.7 million in 2008. the increase in cash provided by operating activities was primarily attributable to a decrease in accounts receivable , trade of $ 43.9 million for 2009 , compared to a decrease of $ 11.8 million in the prior year , resulting from the collection of a large outstanding receivable balance during 2009 , offset partially by decreases in accounts payable and accrued expenses and income taxes payable . cash flows from investing activities . cash provided by investing activities was $ 22.3 million in 2010 compared to $ 16.7 million in 2009. the increase in cash provided by investing activities was primarily attributable to lower purchases of accounts receivable and lower purchases of property and equipment , partially offset by lower collections of purchased accounts receivable . cash provided by investing activities was $ 16.7 million in 2009 compared to cash used in investing activities of $ 424.2 million in 2008. the change in investing activities was primarily attributable to cash paid for acquisitions and acquisition-related costs of $ 349.4 million in 2008 primarily incurred in connection with the acquisition of osi on february 29 , 2008 , as well as lower purchases of accounts receivable in 2009 and $ 20.0 million of cash received from the sale of our print and mail business in 2009 . 40 cash flows from financing activities .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash flows from operating activities . cash provided by operating activities was $ 43.1 million in 2010 , compared to $ 98.5 million in 2009. the decrease in cash provided by operating activities was primarily attributable to lower operating results for 2010 , as well as a decrease in accounts receivable , trade of $ 5.6 million for 2010 compared to $ 43.9 million for 2009 , resulting from the collection of a large outstanding receivable balance during 2009. cash provided by operating activities was $ 98.5 million in 2009 , compared to $ 93.7 million in 2008. the increase in cash provided by operating activities was primarily attributable to a decrease in accounts receivable , trade of $ 43.9 million for 2009 , compared to a decrease of $ 11.8 million in the prior year , resulting from the collection of a large outstanding receivable balance during 2009 , offset partially by decreases in accounts payable and accrued expenses and income taxes payable . cash flows from investing activities . cash provided by investing activities was $ 22.3 million in 2010 compared to $ 16.7 million in 2009. the increase in cash provided by investing activities was primarily attributable to lower purchases of accounts receivable and lower purchases of property and equipment , partially offset by lower collections of purchased accounts receivable . cash provided by investing activities was $ 16.7 million in 2009 compared to cash used in investing activities of $ 424.2 million in 2008. the change in investing activities was primarily attributable to cash paid for acquisitions and acquisition-related costs of $ 349.4 million in 2008 primarily incurred in connection with the acquisition of osi on february 29 , 2008 , as well as lower purchases of accounts receivable in 2009 and $ 20.0 million of cash received from the sale of our print and mail business in 2009 . 40 cash flows from financing activities . ``` Suspicious Activity Report : during the fourth quarter of 2010 , we identified $ 15.4 million of reimbursable costs and fees received from clients associated with certain contractual arrangements acquired in connection with the acquisition of tsys total debt management that were incorrectly recorded on a net basis , as an offset to selling , general and administrative expenses in the statement of operations for the year ended december 31 , 2009. revenue for the year ended december 30 31 , 2009 should have included these reimbursable costs and fees , with an equal and offsetting amount charged to operating expenses , due to the fact that we acted as principal and assumed overall risk in the transactions under these contractual arrangements . although we concluded that the impact was not material to the 2009 financial statements , revenue and operating expenses have been revised to reflect the $ 15.4 million reimbursable costs and fees in both revenue and operating expenses in the statement of operations for the year ended december 31 , 2009. the challenging economic environment in the u.s. has impacted our business over the course of 2009 and 2010. factors such as reduced availability of credit for consumers , a depressed real estate market , high unemployment and other factors have had a negative impact on the ability and willingness of consumers to pay their debts and a negative impact on our clients ' businesses , which has adversely affected our results of operations , collections and revenue . further changes to the economic conditions in the u.s. , either positive or negative , could have a significant impact on our business , including , but not limited to : · further impairment charges to our goodwill , trade name and purchased accounts receivable ; · fluctuations in the volume of placements of accounts and the collectability of those accounts for our arm contingency fee based services ; · volume fluctuations in our arm fixed fee based services ; · volume fluctuations in our crm services ; and , · variability in the collectibility of existing portfolios . we have grown through both acquisitions as well as internal growth . the following table lists the companies we have acquired in the past three years ( purchase price in millions ) : replace_table_token_4_th in october 2009 , we sold our print and mail business for approximately $ 18.7 million in cash . prior to the acquisition of sst on january 2 , 2008 , sst was a wholly owned subsidiary of jpmorgan chase & co. , referred to as jpm . jpm also wholly owns one equity partners , which has had a controlling interest in us since our “going-private” transaction on november 15 , 2006 , referred to as the transaction . transfers of net assets or exchanges of equity interests between entities under common control are accounted for similar to the pooling-of-interests method ( “as-if pooling-of-interests” ) in that the entity that receives the net assets or the equity interests initially recognizes the assets and liabilities transferred at their carrying amounts in the accounts of the transferring entity at the date of transfer . because nco and sst were under common control at the time of the sst acquisition , the transfer of assets and liabilities of sst were accounted for at historical cost in a manner similar to a pooling of interests . for financial accounting purposes , the acquisition was viewed as a change in reporting entity and , as a result , required restatement of our financial statements for all periods subsequent to november 15 , 2006 , the date of the transaction and the date at which common control of nco and sst by jpm commenced . critical accounting policies and estimates general the preparation of consolidated financial statements in conformity with accounting principles generally accepted in the united states requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes . actual results could differ from those estimates . we believe the following accounting policies and estimates are the most critical and could have the most impact on our results of operations . for a discussion of these and other accounting policies , see note 2 in our notes to consolidated financial statements . as a result of the transaction , the majority of our assets and liabilities , including our portfolio of accounts 31 receivable , were adjusted to their fair value as of the date of the transaction . we made significant assumptions in determining the fair value of intangible assets and other assets and liabilities in connection with purchase accounting . additionally , a portion of the equity related to our management stockholders was recorded at the stockholder 's predecessor basis and a corresponding portion of the acquired assets was reduced accordingly . goodwill , other intangible assets and purchase accounting assets acquired and liabilities assumed must be recorded at their fair value at the date of acquisition . our balance sheet includes amounts designated as “goodwill” , “trade name” and “customer relationships and other intangible assets.” goodwill represents the excess of the purchase price over the fair value of the net assets of acquired businesses . trade name represents the fair value of the nco name . other intangible assets consist primarily of customer relationships , which represent the information and regular contact we have with our clients , and non-compete agreements . as of december 31 , 2010 , our balance sheet included goodwill , trade name and other intangibles that represented 38.8 percent , 6.7 percent and 15.8 percent of total assets , respectively , and 597.9 percent , 103.9 percent and 242.6 percent of stockholders ' equity , respectively . goodwill and trade name are tested for impairment at least annually and as triggering events occur . story_separator_special_tag depreciation and amortization decreased to $ 108.8 million in 2010 , from $ 119.6 million in 2009. this decrease was primarily attributable to lower depreciation expense resulting from more assets becoming fully depreciated , as well as lower amortization of customer relationships and other intangible assets due to certain intangible assets becoming fully amortized during 2010. impairment of intangible assets . during the fourth quarter of 2010 , the company recorded goodwill impairment charges of $ 57.0 million in the crm segment . during the fourth quarter of 2009 , the company recorded goodwill impairment charges of $ 24.7 million in the crm segment , and customer relationship impairment charges of $ 5.3 million in the portfolio management segment . restructuring charges . we incurred restructuring charges of $ 18.3 million in 2010 , which related to streamlining the cost structure of our operations and our decision to limit purchases in the portfolio management business . the charges consisted primarily of costs associated with the closing of redundant facilities and severance costs . this compares to $ 10.9 million of restructuring charges in 2009 , which also related to the streamlining of our cost structure . other income ( expense ) . interest expense decreased to $ 90.3 million for 2010 , from $ 99.2 million for 2009. interest expense for 2010 included $ 8.3 million of losses , compared to $ 14.1 of losses in 2009 , from interest rate swap agreements and embedded derivatives . the remaining decrease in interest expense was primarily due to lower debt balances during 2010. other income ( expense ) , net for 2010 and 2009 included approximately $ 1.2 million and $ 7.0 million , respectively , of net gains resulting from the settlement of certain foreign exchange contracts . other income 36 ( expense ) for 2009 also included a $ 5.0 million loss from writing down one of our notes receivable and a $ 4.4 million gain on sale of our print and mail business . income tax expense ( benefit ) . for 2010 , we recorded income tax expense of $ 6.9 million on a pre-tax loss of $ 148.8 million , or an effective income tax rate of ( 4.6 ) percent . for 2009 , we recorded an income tax benefit of $ 1.2 million on a pre-tax loss of $ 89.3 million , or an effective income tax rate of 1.3 percent . the change in the effective income tax rate was due primarily to the recognition of a valuation allowance on certain domestic net deferred tax assets , and income tax expense to be paid in state and foreign jurisdictions . year ended december 31 , 2009 compared to year ended december 31 , 2008 revenue . revenue increased $ 66.2 million , or 4.4 percent , to $ 1,579.4 million for 2009 , from $ 1,513.1 million in 2008. revenue for the year ended december 31 , 2009 was reduced by a $ 21.5 million impairment charge recorded to increase the valuation allowance against the carrying value of the portfolios of purchased accounts receivable , compared to an impairment charge of $ 98.9 million in 2008. revenue by segment ( amounts in thousands ) : replace_table_token_9_th arm 's revenue for 2009 included $ 60.5 million of intercompany revenue earned on services performed for portfolio management and crm 's revenue for 2009 included $ 5.1 million of intercompany revenue earned on services performed for arm , which were eliminated upon consolidation . arm 's revenue for 2008 included $ 82.8 million of intercompany revenue earned on services performed for portfolio management and crm 's revenue for 2008 included $ 2.9 million of intercompany revenue earned on services performed for arm , which were eliminated upon consolidation . the increase in arm 's revenue was primarily attributable to increased volume from new and existing clients in both first-party ( early stage ) and contingent collections as well as a full year of revenue from the osi acquisition completed on february 29 , 2008. this increase was offset in part by the weaker collection environment during 2009 and a $ 22.3 million decrease in fees from collection services performed for portfolio management . the decrease in crm 's revenue was primarily due to lower volumes from certain existing clients attributable to the impact of the economy on the clients ' business , partially offset by increased client volumes related to the implementation of new contracts during 2008 and 2009. portfolio management 's collections , excluding all portfolio sales , decreased $ 48.4 million , or 24.6 percent , to $ 148.4 million in 2009 , from $ 196.8 million in 2008. revenue for 2009 was reduced by a $ 21.5 million impairment charge recorded to increase the valuation allowance against the carrying value of the portfolios of purchased accounts receivable , due to the impact of the deteriorating economic conditions on cash collected and lower estimates of future collections , compared to an impairment charge of $ 98.2 million in the prior year . excluding the effect of the impairment charges as well as portfolio sales , portfolio management 's revenue represented 46.0 percent of collections in 2009 , as compared to 57.1 percent of collections in 2008. the remaining decrease in revenue and collections was attributable to lower portfolio purchases and the affect of the weaker collection environment during 2009. portfolio sales revenue for 2009 was $ 361,000 compared to $ 3.0 million for 2008. payroll and related expenses . payroll and related expenses decreased $ 63.6 million to $ 781.9 million in 2009 , from $ 845.5 million in 2008 , and decreased as a percentage of revenue to 49.5 percent from 55.9 percent . 37 payroll and related expenses by segment ( amounts in thousands ) : replace_table_token_10_th the decrease in arm 's payroll and related expenses as a percentage of revenue was primarily due to the integration efforts following the acquisition of

all debt securities with an unrealized loss are reviewed . we recognize an impairment loss when a debt investment 's value declines below cost , adjusted for accretion , amortization and previous other-than-temporary impairments , and it is determined that the decline is other-than-temporary . debt investments : we assess whether we intend to sell , or it is more likely than not that we will be required to sell , a fixed maturity investment before recovery of its amortized cost basis less any current period credit losses . for fixed maturity investments that are considered other-than-temporarily impaired and that we do not intend to sell and will not be required to sell , we separate the amount of the impairment into the amount that is credit related ( credit loss component ) and the amount due to all other factors . the credit loss component is recognized in earnings and is the difference between the investment 's amortized cost basis and the present value of its expected future cash flows . the remaining difference between the investment 's fair value and the present value of future expected cash flows is recognized in other comprehensive income . the fair value at the time of impairment is the new cost basis for the impaired security . equity investments : asu 2016-01 , “ recognition and measurement of financial assets and financial liabilities ” requires equity investments that are not consolidated or accounted for under the equity method of accounting to be measured at fair value with changes in fair value recognized in net income each reporting period . as a result of this standard , equity securities with readily determinable fair values are not required to be evaluated for other-than-temporary-impairment . fair values of financial instruments . accounting standards codification ( “ asc ” ) 820 defines fair value , establishes a consistent framework for measuring fair value and expands disclosure requirements about fair value measurements . asc 820 , among other things , requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value . in addition , asc 820 precludes the use of block discounts when measuring the fair value of instruments traded in an active market , which were previously applied to large holdings of publicly traded equity securities . we determine the fair value of our financial instruments based on the fair value hierarchy established in asc 820. in accordance with asc 820 , we utilize the following fair value hierarchy : ● level 1 : quoted prices in active markets for identical assets ; ● level 2 : inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets , inputs of identical assets for less active markets , and inputs that are observable for the asset or liability , either directly or indirectly , for substantially the full term of the instrument ; and ● level 3 : inputs to the valuation methodology that are unobservable for the asset or liability . this hierarchy requires the use of observable market data when available . under asc 820 , we determine fair value based on the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date . it is our policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements , in accordance with the fair value hierarchy described above . fair value measurements for assets and liabilities where there exists limited or no observable market data are calculated based upon our pricing policy , the economic and competitive environment , the characteristics of the asset or liability and other factors as appropriate . these estimated fair values may not be realized upon actual sale or immediate settlement of the asset or liability . 37 ​ where quoted prices are available on active exchanges for identical instruments , investment securities are classified within level 1 of the valuation hierarchy . level 1 investment securities include common stock , preferred stock and the equity warrant classified as other investments . level 2 investment securities include corporate bonds , corporate bank loans , municipal bonds , u.s. treasury securities , other obligations of the u.s. government and mortgage-backed securities for which quoted prices are not available on active exchanges for identical instruments . we use a third party pricing service to determine fair values for each level 2 investment security in all asset classes . since quoted prices in active markets for identical assets are not available , these prices are determined using observable market information such as quotes from less active markets and or quoted prices of securities with similar characteristics , among other things . we have reviewed the processes used by the pricing service and have determined that they result in fair values consistent with the requirements of asc 820 for level 2 investment securities . we have not adjusted any prices received from third-party pricing sources . in cases where there is limited activity or less transparency around inputs to the valuation , investment securities are classified within level 3 of the valuation hierarchy . level 3 investments are valued based on the best available data in order to approximate fair value . this data may be internally developed and consider risk premiums that a market participant would require . investment securities classified within level 3 include other less liquid investment securities . deferred policy acquisition costs . policy acquisition costs ( mainly commission , premium taxes , underwriting and marketing expenses and ceding commissions ) that vary with and are primarily related to the successful acquisition of new and renewal insurance contracts are deferred and charged to operations over periods in which the related premiums are earned . story_separator_special_tag as well as unfavorable net prior year loss reserve development of $ 0.1 million during the year ended december 31 , 2020 as compared to favorable net prior year loss reserve development of $ 0.7 million during the same period the prior year , and ( e ) a $ 1.8 million increase in losses and lae in our aerospace & programs business unit due primarily to higher net premiums earned , higher current 41 ​ accident year net loss trends , partially offset by $ 0.4 million of favorable prior year net loss reserve development during the year ended december 31 , 2020 compared to $ 0.1 million of unfavorable prior year net loss reserve development during the same period of 2019. the exited contract binding line of the primary automobile business contributed $ 32.8 million to the commercial auto business unit 's unfavorable prior year loss reserve development during the fiscal year ended december 31 , 2020 as compared to $ 39.8 million for the same period the prior year . operating expenses increased $ 2.3 million primarily as the result of higher production related expenses of $ 1.8 million , increased professional services of $ 2.3 million and increased other operating expenses of $ 0.5 million , partially offset by lower salary and related expenses of $ 1.3 million , due primarily to incentive compensation accrual adjustments reported during the first quarter of 2020 , lower occupancy and related expenses of $ 0.2 million and lower travel and related expenses of $ 0.8 million . the specialty commercial segment reported a net loss ratio of 86.6 % for the year ended december 31 , 2020 as compared to 85.0 % for the same period in 2019. the gross loss ratio before reinsurance was 85.3 % for the year ended december 31 , 2020 as compared to 75.9 % for the same period in 2019. the increase in the net loss ratio was due in large part to the $ 21.7 million charge for the loss portfolio transfer reinsurance contract that closed during the third quarter of 2020 that was reported as ceded incurred losses . the increase in the gross and net loss ratios was also impacted by catastrophe losses of $ 15.7 million for the year ended december 31 , 2020 as compared to catastrophe losses of $ 2.3 million during the same period of 2019 , partially offset by lower unfavorable prior year net loss reserve development and lower current accident year loss trends for the year ended december 31 , 2020 as compared to the same period of 2019. the specialty commercial segment reported $ 45.8 million of unfavorable prior year net loss reserve development for the year ended december 31 , 2020 as compared to unfavorable prior year net loss reserve development of $ 60.1 million for the same period of 2019. the specialty commercial segment reported a net expense ratio of 19.4 % for the year ended december 31 , 2020 as compared to 21.8 % for the same period of 2019. the decrease in the net expense ratio was due largely to the increase in net premiums earned partially offset by the increase in operating expenses . standard commercial segment . gross premiums written for the standard commercial segment were $ 98.0 million for the year ended december 31 , 2020 , which was $ 5.4 million , or 6 % , more than the $ 92.6 million reported for the same period in 2019. net premiums written were $ 68.4 million for the year ended december 31 , 2020 as compared to $ 62.9 million for the same period in 2019. the increase in gross and net premiums written was due to higher premium production in our commercial accounts business unit . total revenue for the standard commercial segment of $ 69.8 million for the year ended december 31 , 2020 , was $ 1.6 million , or 2 % , more than the $ 68.2 million reported for the same period in 2019. this increase in total revenue was due to higher net premiums earned of $ 2.6 million , due primarily to the increased premiums written discussed above , partially offset by lower net investment income of $ 0.8 million and lower finance charges of $ 0.2 million during the year ended december 31 , 2020 as compared to the same period during 2019. our standard commercial segment reported a pre-tax loss of $ 3.0 million for the year ended december 31 , 2020 as compared to a pre-tax loss of $ 0.8 million for the same period of 2019. the pre-tax loss was the result of higher losses and lae of $ 2.4 million and higher operating expenses of $ 1.4 million , partially offset by the higher revenue discussed above . the higher operating expenses were largely the result of higher production related expenses of $ 0.5 million , higher salary and related expenses of $ 0.9 million , higher professional service fees of $ 0.2 million and higher other general expenses of $ 0.2 million , partially offset by lower occupancy and related expenses of $ 0.2 million and lower travel and related expenses of $ 0.2 million . the standard commercial segment reported a net loss ratio of 78.9 % for the year ended december 31 , 2020 as compared to 78.2 % for the same period of 2019. the gross loss ratio before reinsurance for the year ended december 31 , 2020 was 70.3 % as compared to the 74.0 % reported for the same period of 2019. the decrease in the gross loss ratio was due primarily to lower current accident year loss trends . the increase in the net loss ratio was due to unfavorable prior year reserve development and higher net catastrophe losses . during the year ended december 31 , 2020 , the standard commercial segment reported unfavorable net loss reserve development of $ 3.4 million as compared to

liquidity and capital resources sources and uses of funds our sources of funds are from insurance-related operations , financing activities and investing activities . major sources of funds from operations include premiums collected ( net of policy cancellations and premiums ceded ) , commissions and processing and service fees . as a holding company , hallmark is dependent on dividend payments and management fees from its subsidiaries to meet operating expenses and debt obligations . as of december 31 , 2020 , we had $ 9.6 million in unrestricted cash and cash equivalents , including $ 6.7 million held in premium and claim trust accounts , at the holding company and our non-insurance subsidiaries . as of that date , our insurance subsidiaries held $ 93.0 million of unrestricted cash and cash equivalents as well as $ 507.3 million in debt securities with an average modified duration of 0.8 years . accordingly , we do not anticipate selling long-term debt instruments to meet any liquidity needs . ahic and tbic , domiciled in texas , are limited in the payment of dividends to their stockholders in any 12-month period , without the prior written consent of the texas department of insurance , to the greater of statutory net income for the prior calendar year or 10 % of statutory policyholders ' surplus as of the prior year end . hic and hnic , both domiciled in arizona , are limited in the payment of dividends to the lesser of 10 % of prior year policyholders ' surplus or prior year 's net income , without prior written approval from the arizona department of insurance . hsic , domiciled in oklahoma , is limited in the payment of dividends to the greater of 10 % of prior year policyholders ' surplus or prior year 's statutory net income , not including realized capital gains , without prior written approval from the oklahoma insurance department . for all our insurance companies , dividends may only be paid from unassigned surplus funds . during 2021 , the aggregate ordinary dividend capacity of these subsidiaries is $ 22.5 million , of which $ 15.0 million is available to hallmark .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources sources and uses of funds our sources of funds are from insurance-related operations , financing activities and investing activities . major sources of funds from operations include premiums collected ( net of policy cancellations and premiums ceded ) , commissions and processing and service fees . as a holding company , hallmark is dependent on dividend payments and management fees from its subsidiaries to meet operating expenses and debt obligations . as of december 31 , 2020 , we had $ 9.6 million in unrestricted cash and cash equivalents , including $ 6.7 million held in premium and claim trust accounts , at the holding company and our non-insurance subsidiaries . as of that date , our insurance subsidiaries held $ 93.0 million of unrestricted cash and cash equivalents as well as $ 507.3 million in debt securities with an average modified duration of 0.8 years . accordingly , we do not anticipate selling long-term debt instruments to meet any liquidity needs . ahic and tbic , domiciled in texas , are limited in the payment of dividends to their stockholders in any 12-month period , without the prior written consent of the texas department of insurance , to the greater of statutory net income for the prior calendar year or 10 % of statutory policyholders ' surplus as of the prior year end . hic and hnic , both domiciled in arizona , are limited in the payment of dividends to the lesser of 10 % of prior year policyholders ' surplus or prior year 's net income , without prior written approval from the arizona department of insurance . hsic , domiciled in oklahoma , is limited in the payment of dividends to the greater of 10 % of prior year policyholders ' surplus or prior year 's statutory net income , not including realized capital gains , without prior written approval from the oklahoma insurance department . for all our insurance companies , dividends may only be paid from unassigned surplus funds . during 2021 , the aggregate ordinary dividend capacity of these subsidiaries is $ 22.5 million , of which $ 15.0 million is available to hallmark . ``` Suspicious Activity Report : all debt securities with an unrealized loss are reviewed . we recognize an impairment loss when a debt investment 's value declines below cost , adjusted for accretion , amortization and previous other-than-temporary impairments , and it is determined that the decline is other-than-temporary . debt investments : we assess whether we intend to sell , or it is more likely than not that we will be required to sell , a fixed maturity investment before recovery of its amortized cost basis less any current period credit losses . for fixed maturity investments that are considered other-than-temporarily impaired and that we do not intend to sell and will not be required to sell , we separate the amount of the impairment into the amount that is credit related ( credit loss component ) and the amount due to all other factors . the credit loss component is recognized in earnings and is the difference between the investment 's amortized cost basis and the present value of its expected future cash flows . the remaining difference between the investment 's fair value and the present value of future expected cash flows is recognized in other comprehensive income . the fair value at the time of impairment is the new cost basis for the impaired security . equity investments : asu 2016-01 , “ recognition and measurement of financial assets and financial liabilities ” requires equity investments that are not consolidated or accounted for under the equity method of accounting to be measured at fair value with changes in fair value recognized in net income each reporting period . as a result of this standard , equity securities with readily determinable fair values are not required to be evaluated for other-than-temporary-impairment . fair values of financial instruments . accounting standards codification ( “ asc ” ) 820 defines fair value , establishes a consistent framework for measuring fair value and expands disclosure requirements about fair value measurements . asc 820 , among other things , requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value . in addition , asc 820 precludes the use of block discounts when measuring the fair value of instruments traded in an active market , which were previously applied to large holdings of publicly traded equity securities . we determine the fair value of our financial instruments based on the fair value hierarchy established in asc 820. in accordance with asc 820 , we utilize the following fair value hierarchy : ● level 1 : quoted prices in active markets for identical assets ; ● level 2 : inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets , inputs of identical assets for less active markets , and inputs that are observable for the asset or liability , either directly or indirectly , for substantially the full term of the instrument ; and ● level 3 : inputs to the valuation methodology that are unobservable for the asset or liability . this hierarchy requires the use of observable market data when available . under asc 820 , we determine fair value based on the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date . it is our policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements , in accordance with the fair value hierarchy described above . fair value measurements for assets and liabilities where there exists limited or no observable market data are calculated based upon our pricing policy , the economic and competitive environment , the characteristics of the asset or liability and other factors as appropriate . these estimated fair values may not be realized upon actual sale or immediate settlement of the asset or liability . 37 ​ where quoted prices are available on active exchanges for identical instruments , investment securities are classified within level 1 of the valuation hierarchy . level 1 investment securities include common stock , preferred stock and the equity warrant classified as other investments . level 2 investment securities include corporate bonds , corporate bank loans , municipal bonds , u.s. treasury securities , other obligations of the u.s. government and mortgage-backed securities for which quoted prices are not available on active exchanges for identical instruments . we use a third party pricing service to determine fair values for each level 2 investment security in all asset classes . since quoted prices in active markets for identical assets are not available , these prices are determined using observable market information such as quotes from less active markets and or quoted prices of securities with similar characteristics , among other things . we have reviewed the processes used by the pricing service and have determined that they result in fair values consistent with the requirements of asc 820 for level 2 investment securities . we have not adjusted any prices received from third-party pricing sources . in cases where there is limited activity or less transparency around inputs to the valuation , investment securities are classified within level 3 of the valuation hierarchy . level 3 investments are valued based on the best available data in order to approximate fair value . this data may be internally developed and consider risk premiums that a market participant would require . investment securities classified within level 3 include other less liquid investment securities . deferred policy acquisition costs . policy acquisition costs ( mainly commission , premium taxes , underwriting and marketing expenses and ceding commissions ) that vary with and are primarily related to the successful acquisition of new and renewal insurance contracts are deferred and charged to operations over periods in which the related premiums are earned . story_separator_special_tag as well as unfavorable net prior year loss reserve development of $ 0.1 million during the year ended december 31 , 2020 as compared to favorable net prior year loss reserve development of $ 0.7 million during the same period the prior year , and ( e ) a $ 1.8 million increase in losses and lae in our aerospace & programs business unit due primarily to higher net premiums earned , higher current 41 ​ accident year net loss trends , partially offset by $ 0.4 million of favorable prior year net loss reserve development during the year ended december 31 , 2020 compared to $ 0.1 million of unfavorable prior year net loss reserve development during the same period of 2019. the exited contract binding line of the primary automobile business contributed $ 32.8 million to the commercial auto business unit 's unfavorable prior year loss reserve development during the fiscal year ended december 31 , 2020 as compared to $ 39.8 million for the same period the prior year . operating expenses increased $ 2.3 million primarily as the result of higher production related expenses of $ 1.8 million , increased professional services of $ 2.3 million and increased other operating expenses of $ 0.5 million , partially offset by lower salary and related expenses of $ 1.3 million , due primarily to incentive compensation accrual adjustments reported during the first quarter of 2020 , lower occupancy and related expenses of $ 0.2 million and lower travel and related expenses of $ 0.8 million . the specialty commercial segment reported a net loss ratio of 86.6 % for the year ended december 31 , 2020 as compared to 85.0 % for the same period in 2019. the gross loss ratio before reinsurance was 85.3 % for the year ended december 31 , 2020 as compared to 75.9 % for the same period in 2019. the increase in the net loss ratio was due in large part to the $ 21.7 million charge for the loss portfolio transfer reinsurance contract that closed during the third quarter of 2020 that was reported as ceded incurred losses . the increase in the gross and net loss ratios was also impacted by catastrophe losses of $ 15.7 million for the year ended december 31 , 2020 as compared to catastrophe losses of $ 2.3 million during the same period of 2019 , partially offset by lower unfavorable prior year net loss reserve development and lower current accident year loss trends for the year ended december 31 , 2020 as compared to the same period of 2019. the specialty commercial segment reported $ 45.8 million of unfavorable prior year net loss reserve development for the year ended december 31 , 2020 as compared to unfavorable prior year net loss reserve development of $ 60.1 million for the same period of 2019. the specialty commercial segment reported a net expense ratio of 19.4 % for the year ended december 31 , 2020 as compared to 21.8 % for the same period of 2019. the decrease in the net expense ratio was due largely to the increase in net premiums earned partially offset by the increase in operating expenses . standard commercial segment . gross premiums written for the standard commercial segment were $ 98.0 million for the year ended december 31 , 2020 , which was $ 5.4 million , or 6 % , more than the $ 92.6 million reported for the same period in 2019. net premiums written were $ 68.4 million for the year ended december 31 , 2020 as compared to $ 62.9 million for the same period in 2019. the increase in gross and net premiums written was due to higher premium production in our commercial accounts business unit . total revenue for the standard commercial segment of $ 69.8 million for the year ended december 31 , 2020 , was $ 1.6 million , or 2 % , more than the $ 68.2 million reported for the same period in 2019. this increase in total revenue was due to higher net premiums earned of $ 2.6 million , due primarily to the increased premiums written discussed above , partially offset by lower net investment income of $ 0.8 million and lower finance charges of $ 0.2 million during the year ended december 31 , 2020 as compared to the same period during 2019. our standard commercial segment reported a pre-tax loss of $ 3.0 million for the year ended december 31 , 2020 as compared to a pre-tax loss of $ 0.8 million for the same period of 2019. the pre-tax loss was the result of higher losses and lae of $ 2.4 million and higher operating expenses of $ 1.4 million , partially offset by the higher revenue discussed above . the higher operating expenses were largely the result of higher production related expenses of $ 0.5 million , higher salary and related expenses of $ 0.9 million , higher professional service fees of $ 0.2 million and higher other general expenses of $ 0.2 million , partially offset by lower occupancy and related expenses of $ 0.2 million and lower travel and related expenses of $ 0.2 million . the standard commercial segment reported a net loss ratio of 78.9 % for the year ended december 31 , 2020 as compared to 78.2 % for the same period of 2019. the gross loss ratio before reinsurance for the year ended december 31 , 2020 was 70.3 % as compared to the 74.0 % reported for the same period of 2019. the decrease in the gross loss ratio was due primarily to lower current accident year loss trends . the increase in the net loss ratio was due to unfavorable prior year reserve development and higher net catastrophe losses . during the year ended december 31 , 2020 , the standard commercial segment reported unfavorable net loss reserve development of $ 3.4 million as compared to

payroll and related expenses consist of wages and salaries , commissions , bonuses , and benefits for all of our employees , including management and administrative personnel . selling , general and administrative expenses include telephone , postage and mailing costs , outside collection attorneys and other third-party collection services providers , and other collection costs , as well as expenses that directly support operations , including facility costs , equipment maintenance , sales and marketing , data processing , professional fees , and other management costs . as a result of the annual impairment testing completed during the fourth quarter of 2008 , we recorded goodwill and trade name impairment charges of $ 289.5 million . additionally , revenue for 2008 was reduced by a $ 98.9 million impairment charge recorded to increase the valuation allowance against the carrying value of the portfolios of purchased accounts receivable . during the second half of 2007 and during 2008 , our payroll and related expenses were negatively impacted by the decline in the u.s. dollar against the canadian dollar . changes to the economic conditions in the u.s. , either positive or negative , could have a significant impact on our business , including , but not limited to : · further impairment charges to our goodwill , trade name and purchased accounts receivable ; · fluctuations in the volume of placements of accounts and the collectability of those accounts for our arm contingency fee based services ; · volume fluctuations in our arm fixed fee based services ; · volume fluctuations in our crm services ; and , · variability in the collectability of existing portfolios and the ability to purchase portfolios at acceptable prices for our portfolio management business . we have grown rapidly , through both acquisitions as well as internal growth . on january 2 , 2008 , we acquired systems & services technologies , inc. , referred to as sst , a third-party consumer receivable servicer , for $ 17.7 million . on february 29 , 2008 , we acquired outsourcing solutions , inc. , referred to as osi , a leading provider of business process outsourcing services , specializing primarily in accounts receivable management services , for $ 339.0 million . during 2008 , the company also acquired several smaller companies , all of which were providers of arm services , for an aggregate purchase price of $ 9.3 million which was paid in cash . on january 9 , 2007 , we acquired statewide mercantile services , referred to as sms , a provider of arm services in australia for approximately $ 2.1 million , which included sms ' portfolio of purchased accounts receivable . during 2006 , we completed two acquisitions : australian receivables limited , referred to as arl , a provider of arm services in australia , in july 2006 for approximately $ 9.4 million ; and star contact ( bvi ) ltd and call center telemarketing pro-panama , s.a. , referred to as star contact , a provider of crm services in panama , in december 2006 for approximately $ 51.2 million . prior to the acquisition of sst on january 2 , 2008 , sst was a wholly owned subsidiary of 42 table of contents jpmorgan chase & co. , referred to as jpm . jpm also wholly owns oep , which as described above has had a controlling interest in us since the transaction on november 15 , 2006. financial accounting standards board , referred to as fasb , statement of financial accounting standards no . 141 , “business combinations , ” referred to as sfas 141 , states that a “business combination” excludes transfers of net assets or exchanges of equity interests between entities under common control . sfas 141 also states that transfers of net assets or exchanges of equity interests between entities under common control should be accounted for similar to the pooling-of-interests method ( “as-if pooling-of-interests” ) in that the entity that receives the net assets or the equity interests initially recognizes the assets and liabilities transferred at their carrying amounts in the accounts of the transferring entity at the date of transfer . because nco and sst were under common control at the time of the sst acquisition , the transfer of assets and liabilities of sst were accounted for at historical cost in a manner similar to a pooling of interests . for financial accounting purposes , the acquisition is viewed as a change in reporting entity and , as a result , required restatement of our financial statements for all periods subsequent to november 15 , 2006 , the date of the transaction and the date at which common control of nco and sst by jpm commenced . in “as-if pooling-of-interests” accounting , financial statements of the previously separate companies for periods prior to the combination are restated on a combined basis to furnish comparative information . accordingly , our consolidated balance sheet as of december 31 , 2007 and the consolidated statements of operations and cash flows for the year ended december 31 , 2007 and for the period from july 13 , 2006 through december 31 , 2006 include sst 's financial position information as of december 31 , 2007 and its results of operations and cash flows for the year ended december 31 , 2007 and for the one month ended december 31 , 2006. critical accounting policies and estimates general the preparation of consolidated financial statements in conformity with accounting principles generally accepted in the united states requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes . actual results could differ from those estimates . we believe the following accounting policies and estimates are the most critical and could have the most impact on our results of operations . story_separator_special_tag the increase in payroll and related expenses as a percentage of revenue was primarily attributable to the decrease in revenues due to the $ 98.9 impairment charge recorded on purchased accounts receivables in the year ended december 31 , 2008. arm 's payroll and related expenses increased $ 157.5 million to $ 583.7 million in 2008 , from $ 426.2 million in 2007 , and increased as a percentage of revenue to 47.9 percent from 46.5 percent . payroll and related expenses increased primarily due to the acquisition of osi on february 29 , 2008 , and increased as a percentage of revenue due to the osi acquisition as well as the effect of the weaker collection environment on arm 's revenue . included in arm 's payroll and related expenses was $ 2.9 million of intercompany expense to crm , for services provided to arm . crm 's payroll and related expenses increased $ 10.2 million to $ 256.9 million in 2008 , from $ 246.7 million in 2007 , but decreased as a percentage of revenue to 71.1 percent from 75.1 percent . the decrease as a percentage of revenue was primarily a result of our continuing deployment of additional staff in off-shore locations . portfolio management 's payroll and related expenses increased $ 171,000 to $ 7.8 million in 2008 , from $ 7.6 million in 2007. portfolio management outsources all of its collection services to arm and , therefore , has a relatively small fixed payroll cost structure . selling , general and administrative expenses . selling , general and administrative expenses increased $ 103.2 million to $ 562.3 million in 2008 , from $ 459.2 million in 2007 , and increased as a percentage of revenue to 37.2 percent from 35.7 percent . the increase in selling , general and administrative expenses as a percentage of revenue was primarily attributable to the decrease in revenues due to the $ 98.9 million impairment charge recorded on purchased accounts receivables in 2008. arm 's selling , general and administrative expenses increased $ 95.6 million to $ 496.9 million in 2008 , from $ 401.2 million in 2007 , but decreased as a percentage of revenue to 40.7 percent 48 table of contents from 43.8 percent . the increase in arm 's selling , general and administrative expenses was primarily due to the osi acquisition . the decrease in arm 's selling , general and administrative expenses as a percentage of revenue was primarily attributable to leveraging our infrastructure over the larger revenue base . crm 's selling , general and administrative expenses increased $ 7.4 million to $ 61.7 million in 2008 , from $ 54.3 million in 2007 , and increased as a percentage of revenue to 17.1 percent from 16.5 percent . the increase in crm 's selling , general and administrative expenses as a percentage of revenue was primarily attributable to ramping up capacity due to increasing client volumes , in advance of the offsetting revenue generation . portfolio management 's selling , general and administrative expenses decreased $ 26.2 million to $ 86.5 million in 2008 , from $ 112.7 million in 2007 , but increased as a percentage of revenue , not including portfolio sales revenue and excluding the effect of impairment charges , to 76.2 percent from 72.8 percent . the decrease in portfolio management 's selling , general and administrative expenses resulted from a $ 26.3 million decrease in fees for collection services provided by arm . the increase as a percentage of revenue was primarily due to the decrease in revenue due to lower collections . included in portfolio management 's selling , general and administrative expenses for 2008 and 2007 was $ 82.8 million and $ 109.1 million , respectively , of intercompany expense to arm , for services provided to portfolio management . restructuring charges . during 2008 we incurred restructuring charges of $ 11.6 million related to restructuring of our legacy operations to streamline our cost structure , in conjunction with the osi acquisition . the charges consisted primarily of costs associated with the closing of redundant facilities and severance . depreciation and amortization . depreciation and amortization increased to $ 121.3 million in 2008 , from $ 102.3 million in 2007. this increase was primarily attributable to the amortization of the customer relationships resulting from the osi acquisition . impairment of intangible assets . during the fourth quarter of 2008 , the company performed its annual impairment tests of goodwill and trade name and recorded impairment charges totaling $ 289.5 million . other income ( expense ) . interest expense decreased to $ 94.8 million for 2008 , from $ 95.3 million for 2007. the decrease was attributable to lower floating interest rates on the senior credit facility and the senior notes . the lower interest rates were partially offset by additional borrowings under the senior credit facility primarily to fund a portion of the acquisition of osi . other income ( expense ) , net for 2008 and 2007 included approximately $ 16.8 million of net losses and $ 2.2 million of net gains , respectively , resulting from the settlement of certain foreign exchange contracts . income tax ( benefit ) expense . for 2008 , the effective income tax rate decreased to 16.8 percent from 35.7 percent for 2007 , due to losses in the domestic arm , crm and portfolio management businesses combined with income from certain foreign businesses , which are not subject to income tax , and less income attributable to minority interests . year ended december 31 , 2007 compared to year ended december 31 , 2006 revenue . revenue increased $ 89.2 million , or 7.5 percent , to $ 1,285.4 million for 2007 , from $ 1,196.2 million in 2006. arm , crm and portfolio management accounted for $ 915.6 million , $ 328.5 million and $ 150.9 million , respectively , of the 2007 revenue

cash flows from financing activities . cash provided by financing activities was $ 332.2 million in 2008 , compared to cash used in financing activities of $ 2.9 million in 2007. the change in financing activities resulted from the additional borrowings of $ 139.0 million under our credit facility and the issuance of $ 210.0 million of stock , both of which were used primarily to fund the osi acquisition . during 2008 , we paid $ 17.5 million to jpm in connection with the acquisition of sst , which was deemed to be a cash dividend for accounting purposes . cash used in financing activities was $ 2.9 million in 2007 , compared to cash provided by financing activities of $ 914.9 million in 2006. the change in financing activities resulted from the 2006 borrowings of $ 830.0 million to fund the transaction , consisting of $ 465.0 million term loan under the credit facility , $ 165.0 million of senior notes and $ 200.0 million of senior subordinated notes . also , contributing to the change was the 2006 issuance of $ 396.0 million of capital stock in connection with the transaction . partially offsetting these items was net borrowings under the credit facility of $ 6.4 million in 2007 , compared to net repayments of $ 134.5 million in 2006. senior credit facility . on november 15 , 2006 we entered into the credit facility with a syndicate of financial institutions . the credit facility , as amended , consists of a term loan ( $ 588.6 million outstanding as of december 31 , 2008 ) and a $ 100.0 million revolving credit facility ( $ 81.5 million outstanding as of december 31 , 2008 ) . we are required to make quarterly repayments of $ 1.5 million on the term loan until its maturity in may 2013 , at which its remaining balance outstanding is due . we are also required to make annual prepayments of 50 percent , 25 percent or zero percent of our excess annual cash flow , based on our leverage ratio .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 provided by financing activities was $ 332.2 million in 2008 , compared to cash used in financing activities of $ 2.9 million in 2007. the change in financing activities resulted from the additional borrowings of $ 139.0 million under our credit facility and the issuance of $ 210.0 million of stock , both of which were used primarily to fund the osi acquisition . during 2008 , we paid $ 17.5 million to jpm in connection with the acquisition of sst , which was deemed to be a cash dividend for accounting purposes . cash used in financing activities was $ 2.9 million in 2007 , compared to cash provided by financing activities of $ 914.9 million in 2006. the change in financing activities resulted from the 2006 borrowings of $ 830.0 million to fund the transaction , consisting of $ 465.0 million term loan under the credit facility , $ 165.0 million of senior notes and $ 200.0 million of senior subordinated notes . also , contributing to the change was the 2006 issuance of $ 396.0 million of capital stock in connection with the transaction . partially offsetting these items was net borrowings under the credit facility of $ 6.4 million in 2007 , compared to net repayments of $ 134.5 million in 2006. senior credit facility . on november 15 , 2006 we entered into the credit facility with a syndicate of financial institutions . the credit facility , as amended , consists of a term loan ( $ 588.6 million outstanding as of december 31 , 2008 ) and a $ 100.0 million revolving credit facility ( $ 81.5 million outstanding as of december 31 , 2008 ) . we are required to make quarterly repayments of $ 1.5 million on the term loan until its maturity in may 2013 , at which its remaining balance outstanding is due . we are also required to make annual prepayments of 50 percent , 25 percent or zero percent of our excess annual cash flow , based on our leverage ratio . ``` Suspicious Activity Report : payroll and related expenses consist of wages and salaries , commissions , bonuses , and benefits for all of our employees , including management and administrative personnel . selling , general and administrative expenses include telephone , postage and mailing costs , outside collection attorneys and other third-party collection services providers , and other collection costs , as well as expenses that directly support operations , including facility costs , equipment maintenance , sales and marketing , data processing , professional fees , and other management costs . as a result of the annual impairment testing completed during the fourth quarter of 2008 , we recorded goodwill and trade name impairment charges of $ 289.5 million . additionally , revenue for 2008 was reduced by a $ 98.9 million impairment charge recorded to increase the valuation allowance against the carrying value of the portfolios of purchased accounts receivable . during the second half of 2007 and during 2008 , our payroll and related expenses were negatively impacted by the decline in the u.s. dollar against the canadian dollar . changes to the economic conditions in the u.s. , either positive or negative , could have a significant impact on our business , including , but not limited to : · further impairment charges to our goodwill , trade name and purchased accounts receivable ; · fluctuations in the volume of placements of accounts and the collectability of those accounts for our arm contingency fee based services ; · volume fluctuations in our arm fixed fee based services ; · volume fluctuations in our crm services ; and , · variability in the collectability of existing portfolios and the ability to purchase portfolios at acceptable prices for our portfolio management business . we have grown rapidly , through both acquisitions as well as internal growth . on january 2 , 2008 , we acquired systems & services technologies , inc. , referred to as sst , a third-party consumer receivable servicer , for $ 17.7 million . on february 29 , 2008 , we acquired outsourcing solutions , inc. , referred to as osi , a leading provider of business process outsourcing services , specializing primarily in accounts receivable management services , for $ 339.0 million . during 2008 , the company also acquired several smaller companies , all of which were providers of arm services , for an aggregate purchase price of $ 9.3 million which was paid in cash . on january 9 , 2007 , we acquired statewide mercantile services , referred to as sms , a provider of arm services in australia for approximately $ 2.1 million , which included sms ' portfolio of purchased accounts receivable . during 2006 , we completed two acquisitions : australian receivables limited , referred to as arl , a provider of arm services in australia , in july 2006 for approximately $ 9.4 million ; and star contact ( bvi ) ltd and call center telemarketing pro-panama , s.a. , referred to as star contact , a provider of crm services in panama , in december 2006 for approximately $ 51.2 million . prior to the acquisition of sst on january 2 , 2008 , sst was a wholly owned subsidiary of 42 table of contents jpmorgan chase & co. , referred to as jpm . jpm also wholly owns oep , which as described above has had a controlling interest in us since the transaction on november 15 , 2006. financial accounting standards board , referred to as fasb , statement of financial accounting standards no . 141 , “business combinations , ” referred to as sfas 141 , states that a “business combination” excludes transfers of net assets or exchanges of equity interests between entities under common control . sfas 141 also states that transfers of net assets or exchanges of equity interests between entities under common control should be accounted for similar to the pooling-of-interests method ( “as-if pooling-of-interests” ) in that the entity that receives the net assets or the equity interests initially recognizes the assets and liabilities transferred at their carrying amounts in the accounts of the transferring entity at the date of transfer . because nco and sst were under common control at the time of the sst acquisition , the transfer of assets and liabilities of sst were accounted for at historical cost in a manner similar to a pooling of interests . for financial accounting purposes , the acquisition is viewed as a change in reporting entity and , as a result , required restatement of our financial statements for all periods subsequent to november 15 , 2006 , the date of the transaction and the date at which common control of nco and sst by jpm commenced . in “as-if pooling-of-interests” accounting , financial statements of the previously separate companies for periods prior to the combination are restated on a combined basis to furnish comparative information . accordingly , our consolidated balance sheet as of december 31 , 2007 and the consolidated statements of operations and cash flows for the year ended december 31 , 2007 and for the period from july 13 , 2006 through december 31 , 2006 include sst 's financial position information as of december 31 , 2007 and its results of operations and cash flows for the year ended december 31 , 2007 and for the one month ended december 31 , 2006. critical accounting policies and estimates general the preparation of consolidated financial statements in conformity with accounting principles generally accepted in the united states requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes . actual results could differ from those estimates . we believe the following accounting policies and estimates are the most critical and could have the most impact on our results of operations . story_separator_special_tag the increase in payroll and related expenses as a percentage of revenue was primarily attributable to the decrease in revenues due to the $ 98.9 impairment charge recorded on purchased accounts receivables in the year ended december 31 , 2008. arm 's payroll and related expenses increased $ 157.5 million to $ 583.7 million in 2008 , from $ 426.2 million in 2007 , and increased as a percentage of revenue to 47.9 percent from 46.5 percent . payroll and related expenses increased primarily due to the acquisition of osi on february 29 , 2008 , and increased as a percentage of revenue due to the osi acquisition as well as the effect of the weaker collection environment on arm 's revenue . included in arm 's payroll and related expenses was $ 2.9 million of intercompany expense to crm , for services provided to arm . crm 's payroll and related expenses increased $ 10.2 million to $ 256.9 million in 2008 , from $ 246.7 million in 2007 , but decreased as a percentage of revenue to 71.1 percent from 75.1 percent . the decrease as a percentage of revenue was primarily a result of our continuing deployment of additional staff in off-shore locations . portfolio management 's payroll and related expenses increased $ 171,000 to $ 7.8 million in 2008 , from $ 7.6 million in 2007. portfolio management outsources all of its collection services to arm and , therefore , has a relatively small fixed payroll cost structure . selling , general and administrative expenses . selling , general and administrative expenses increased $ 103.2 million to $ 562.3 million in 2008 , from $ 459.2 million in 2007 , and increased as a percentage of revenue to 37.2 percent from 35.7 percent . the increase in selling , general and administrative expenses as a percentage of revenue was primarily attributable to the decrease in revenues due to the $ 98.9 million impairment charge recorded on purchased accounts receivables in 2008. arm 's selling , general and administrative expenses increased $ 95.6 million to $ 496.9 million in 2008 , from $ 401.2 million in 2007 , but decreased as a percentage of revenue to 40.7 percent 48 table of contents from 43.8 percent . the increase in arm 's selling , general and administrative expenses was primarily due to the osi acquisition . the decrease in arm 's selling , general and administrative expenses as a percentage of revenue was primarily attributable to leveraging our infrastructure over the larger revenue base . crm 's selling , general and administrative expenses increased $ 7.4 million to $ 61.7 million in 2008 , from $ 54.3 million in 2007 , and increased as a percentage of revenue to 17.1 percent from 16.5 percent . the increase in crm 's selling , general and administrative expenses as a percentage of revenue was primarily attributable to ramping up capacity due to increasing client volumes , in advance of the offsetting revenue generation . portfolio management 's selling , general and administrative expenses decreased $ 26.2 million to $ 86.5 million in 2008 , from $ 112.7 million in 2007 , but increased as a percentage of revenue , not including portfolio sales revenue and excluding the effect of impairment charges , to 76.2 percent from 72.8 percent . the decrease in portfolio management 's selling , general and administrative expenses resulted from a $ 26.3 million decrease in fees for collection services provided by arm . the increase as a percentage of revenue was primarily due to the decrease in revenue due to lower collections . included in portfolio management 's selling , general and administrative expenses for 2008 and 2007 was $ 82.8 million and $ 109.1 million , respectively , of intercompany expense to arm , for services provided to portfolio management . restructuring charges . during 2008 we incurred restructuring charges of $ 11.6 million related to restructuring of our legacy operations to streamline our cost structure , in conjunction with the osi acquisition . the charges consisted primarily of costs associated with the closing of redundant facilities and severance . depreciation and amortization . depreciation and amortization increased to $ 121.3 million in 2008 , from $ 102.3 million in 2007. this increase was primarily attributable to the amortization of the customer relationships resulting from the osi acquisition . impairment of intangible assets . during the fourth quarter of 2008 , the company performed its annual impairment tests of goodwill and trade name and recorded impairment charges totaling $ 289.5 million . other income ( expense ) . interest expense decreased to $ 94.8 million for 2008 , from $ 95.3 million for 2007. the decrease was attributable to lower floating interest rates on the senior credit facility and the senior notes . the lower interest rates were partially offset by additional borrowings under the senior credit facility primarily to fund a portion of the acquisition of osi . other income ( expense ) , net for 2008 and 2007 included approximately $ 16.8 million of net losses and $ 2.2 million of net gains , respectively , resulting from the settlement of certain foreign exchange contracts . income tax ( benefit ) expense . for 2008 , the effective income tax rate decreased to 16.8 percent from 35.7 percent for 2007 , due to losses in the domestic arm , crm and portfolio management businesses combined with income from certain foreign businesses , which are not subject to income tax , and less income attributable to minority interests . year ended december 31 , 2007 compared to year ended december 31 , 2006 revenue . revenue increased $ 89.2 million , or 7.5 percent , to $ 1,285.4 million for 2007 , from $ 1,196.2 million in 2006. arm , crm and portfolio management accounted for $ 915.6 million , $ 328.5 million and $ 150.9 million , respectively , of the 2007 revenue

our belief that our existing level of inventory will allow us to maintain competitive lead times and provide strong delivery performance to our customers ; the effect that distributor and customer inventory holding patterns will have on us ; our belief that customers recognize our products and brand name and use distributors as an effective supply channel ; anticipating increased customer requirements to meet voluntary criteria related to the reduction or elimination of substances in our products ; our belief that our direct sales personnel combined with our distributors provide an effective means of reaching our customer base ; the accuracy of our estimates of the useful life and values of our property , assets and other liabilities ; our ability to increase the proprietary portion of our analog , interface , mixed signal and timing product lines and the effect of such an increase ; our belief that our processes afford us both cost-effective designs in existing and derivative products and greater functionality in new product designs ; the impact of any supply disruption we may experience ; our ability to effectively utilize our facilities at appropriate capacity levels and anticipated costs ; 35 that we adjust capacity utilization to respond to actual and anticipated business and industry-related conditions ; that manufacturing costs will be reduced by transition to advanced process technologies ; our ability to maintain manufacturing yields ; continuing our investments in new and enhanced products ; the cost effectiveness of using our own assembly and test operations ; our plans for operation of our fabrication facilities , including our plan to close our facility in santa clara , california ; the cost savings from re-purposing fab 5 for the manufacture of discrete and specialty products in addition to a lower volume of a diversified set of standard products and transferring the manufacture of certain higher volume products to other facilities ; our anticipated level of capital expenditures ; continuation and amount of quarterly cash dividends ; the sufficiency of our existing sources of liquidity to finance anticipated capital expenditures and otherwise meet our anticipated cash requirements , and the effects that our contractual obligations are expected to have on them ; the impact of seasonality on our business ; our belief that our it system compromise has not had a material adverse effect on our business or resulted in any material damage to us ; our expectation that we will continue to be the target of attacks on our data , attempts to breach our security and attempts to introduce malicious software into our it systems ; the accuracy of our estimates used in valuing employee equity awards ; that the resolution of legal actions will not have a material effect on our business , and the accuracy of our assessment of the probability of loss and range of potential loss ; the recoverability of our deferred tax assets ; the adequacy of our tax reserves to offset any potential tax liabilities , having the appropriate support for our income tax positions and the accuracy of our estimated tax rate ; our belief that the expiration of any tax holidays will not have a material impact on our financial statements or effective tax rate ; the impact of our intra-group asset transfers , and the geographical dispersion of our earnings and losses on our effective tax rate ; our belief that the estimates used in preparing our consolidated financial statements are reasonable ; our actions to vigorously and aggressively defend and protect our intellectual property on a worldwide basis ; our ability to obtain patents and intellectual property licenses and minimize the effects of litigation ; the level of risk we are exposed to for product liability claims or indemnification claims ; the effect of fluctuations in market interest rates on our income and or cash flows ; the effect of fluctuations in currency rates ; that we could increase our borrowings or seek additional equity or debt financing to maintain or expand our facilities , or to fund cash dividends , share repurchases , acquisitions or other corporate activities , and that the timing and amount of such financing requirements will depend on a number of factors ; our intention to satisfy the lesser of the principal amount or the conversion value of our debentures in cash ; our intention to invest substantially all of our foreign subsidiary earnings , as well as our capital in our foreign subsidiaries , indefinitely outside of the u.s. in those jurisdictions in which we would incur significant , additional costs upon repatriation of such amounts . changes to the taxation of undistributed foreign earnings could change our future intentions regarding reinvestment of such earnings ; our belief that the effect the new tax laws will have on low-taxed income of foreign subsidiaries will have the most significant , adverse impact ; and our ability to collect accounts receivable . our actual results could differ materially from the results anticipated in these forward-looking statements as a result of certain factors including those set forth in `` item 1a – risk factors , `` and elsewhere in this form 10-k . although we believe that the expectations reflected in our forward-looking statements are reasonable , we can not guarantee future results , levels of activity , performance or achievements . you should not place undue reliance on these forward-looking statements . we disclaim any obligation to update the information contained in any forward-looking statement . 36 introduction the following discussion should be read in conjunction with the consolidated financial statements and the related notes that appear elsewhere in this document , as well as with other sections of this annual report on form 10-k , including `` item 1 – business ; `` `` item 6 – selected financial data ; `` and `` item 8 – financial statements and supplementary data . story_separator_special_tag after the transaction price has been allocated , we recognize revenue when the performance obligation is satisfied . substantially all of the revenue generated from contracts with distributors is recognized at the time risk and title of the inventory transfers to the distributor . sales to our direct customers are generally governed by a purchase order and an order acknowledgment . sales to direct customers usually do not meet the definition of a contract , as defined by asc 606 , until shipment of the product occurs . generally , the transaction price associated with contracts with direct customers is set at the standalone selling price and is not variable . usually , there is only a single performance obligation in the contract , and therefore the entire transaction price is allocated to the single performance obligation . after the transaction price has been allocated , we recognize revenue when the performance obligation is satisfied . substantially all of the revenue generated from contracts with direct customers is recognized at the time risk and title of the inventory transfers to the customer . revenue generated from our licensees is governed by licensing agreements . our primary performance obligation related to these agreements is to provide the licensee the right to use the intellectual property . the final transaction price is determined by multiplying the usage of the license by the royalty , which is fixed in the licensing agreement . revenue is recognized as usage of the license occurs . business combinations all of our business combinations are accounted for at fair value under the acquisition method of accounting . under the acquisition method of accounting , ( i ) acquisition-related costs , except for those costs incurred to issue debt or equity securities , will be expensed in the period incurred ; ( ii ) non-controlling interests will be valued at fair value at the acquisition date ; ( iii ) in-process research and development will be recorded at fair value as an intangible asset at the acquisition date and amortized once the technology reaches technological feasibility ; ( iv ) restructuring costs associated with a business combination will be expensed subsequent to the acquisition date ; and ( v ) changes in deferred tax asset valuation allowances and income tax uncertainties after the acquisition date will be recognized through income tax expense . the measurement of the fair value of assets acquired and liabilities assumed requires significant judgment . the valuation of intangible assets , in particular , requires that we use valuation techniques such as the income approach . the income approach includes the use of a discounted cash flow model , which includes discounted cash flow scenarios and requires the following significant estimates : revenue , expenses , capital spending and other costs , and discount rates based on the respective risks of the cash flows . under the acquisition method of accounting , the aggregate amount of consideration we pay for a company is allocated to net tangible assets and intangible assets based on their estimated fair values as of the acquisition date . the excess of the purchase price over the value of the net tangible assets and intangible assets is recorded to goodwill . on an annual basis , we test goodwill for impairment and through march 31 , 2020 , we have never recorded an impairment charge against our goodwill balance . 40 share-based compensation we measure at fair value and recognize compensation expense for all share-based payment awards , including grants of employee stock options , restricted stock units ( rsus ) and employee stock purchase rights , to be recognized in our financial statements based on their respective grant date fair values . we utilize rsus as our primary equity incentive compensation instrument for employees . share-based compensation cost is measured on the grant date based on the fair market value of our common stock discounted for expected future dividends and is recognized as expense on a straight-line basis over the requisite service periods . total share-based compensation expense recognized during the fiscal 2020 was $ 170.2 million , of which $ 149.3 million was reflected in operating expenses and $ 20.9 million was reflected in cost of sales . total share-based compensation included in our inventory balance was $ 14.4 million at march 31 , 2020 . if there are any modifications or cancellations of the underlying unvested securities , we may be required to accelerate , increase or cancel any remaining unearned share-based compensation expense . future share-based compensation expense and unearned share-based compensation will increase to the extent that we grant additional equity awards to employees or we assume unvested equity awards in connection with acquisitions . inventories inventories are valued at the lower of cost or net realizable value using the first-in , first-out method . we write down our inventory for estimated obsolescence or unmarketable inventory in an amount equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions . if actual market conditions are less favorable than those we projected , additional inventory write-downs may be required . inventory impairment charges establish a new cost basis for inventory and charges are not subsequently reversed to income even if circumstances later suggest that increased carrying amounts are recoverable . in estimating our inventory obsolescence , we primarily evaluate estimates of demand over a 12-month period and record impairment charges for inventory on hand in excess of the estimated 12-month demand . estimates for projected 12-month demand are generally based on the average shipments of the prior three-month period , which are then annualized to adjust for any potential seasonality in our business . the estimated 12-month demand is compared to our most recently developed sales forecast to further reconcile the 12-month demand estimate . management reviews and adjusts the estimates as appropriate based on specific situations . for example , demand

. cash dividends paid per share were $ 1.465 , $ 1.457 and $ 1.449 during fiscal 2020 , 2019 and 2018 , respectively . total dividend payments amounted to $ 350.1 million , $ 344.4 million and $ 337.5 million during fiscal 2020 , 2019 and 2018 , respectively . a quarterly dividend of $ 0.3675 per share was declared on may 7 , 2020 and will be paid on june 4 , 2020 to stockholders of record as of may 21 , 2020 . we expect the aggregate cash dividend for june 2020 to be approximately $ 90.3 million . our board is free to change our dividend practices at any time and to increase or decrease the dividend paid , or not to pay a dividend on our common stock on the basis of our results of operations , financial condition , cash requirements and future prospects , and other factors deemed relevant by our board . our current intent is to provide for ongoing quarterly cash dividends depending upon market conditions , our results of operations , and potential changes in tax laws . we believe that our existing sources of liquidity combined with cash generated from operations and borrowings under our revolving credit facility will be sufficient to meet our currently anticipated cash requirements for at least the next 12 months . however , the semiconductor industry is capital intensive . in order to remain competitive , we must constantly evaluate the need to make significant investments in capital equipment for both production and research and development . we may increase our borrowings under our revolving credit facility or seek additional equity or debt financing from time to time to maintain or expand our wafer fabrication and product assembly and test facilities , for cash dividends , for share repurchases or for acquisitions or other purposes .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```. cash dividends paid per share were $ 1.465 , $ 1.457 and $ 1.449 during fiscal 2020 , 2019 and 2018 , respectively . total dividend payments amounted to $ 350.1 million , $ 344.4 million and $ 337.5 million during fiscal 2020 , 2019 and 2018 , respectively . a quarterly dividend of $ 0.3675 per share was declared on may 7 , 2020 and will be paid on june 4 , 2020 to stockholders of record as of may 21 , 2020 . we expect the aggregate cash dividend for june 2020 to be approximately $ 90.3 million . our board is free to change our dividend practices at any time and to increase or decrease the dividend paid , or not to pay a dividend on our common stock on the basis of our results of operations , financial condition , cash requirements and future prospects , and other factors deemed relevant by our board . our current intent is to provide for ongoing quarterly cash dividends depending upon market conditions , our results of operations , and potential changes in tax laws . we believe that our existing sources of liquidity combined with cash generated from operations and borrowings under our revolving credit facility will be sufficient to meet our currently anticipated cash requirements for at least the next 12 months . however , the semiconductor industry is capital intensive . in order to remain competitive , we must constantly evaluate the need to make significant investments in capital equipment for both production and research and development . we may increase our borrowings under our revolving credit facility or seek additional equity or debt financing from time to time to maintain or expand our wafer fabrication and product assembly and test facilities , for cash dividends , for share repurchases or for acquisitions or other purposes . ``` Suspicious Activity Report : our belief that our existing level of inventory will allow us to maintain competitive lead times and provide strong delivery performance to our customers ; the effect that distributor and customer inventory holding patterns will have on us ; our belief that customers recognize our products and brand name and use distributors as an effective supply channel ; anticipating increased customer requirements to meet voluntary criteria related to the reduction or elimination of substances in our products ; our belief that our direct sales personnel combined with our distributors provide an effective means of reaching our customer base ; the accuracy of our estimates of the useful life and values of our property , assets and other liabilities ; our ability to increase the proprietary portion of our analog , interface , mixed signal and timing product lines and the effect of such an increase ; our belief that our processes afford us both cost-effective designs in existing and derivative products and greater functionality in new product designs ; the impact of any supply disruption we may experience ; our ability to effectively utilize our facilities at appropriate capacity levels and anticipated costs ; 35 that we adjust capacity utilization to respond to actual and anticipated business and industry-related conditions ; that manufacturing costs will be reduced by transition to advanced process technologies ; our ability to maintain manufacturing yields ; continuing our investments in new and enhanced products ; the cost effectiveness of using our own assembly and test operations ; our plans for operation of our fabrication facilities , including our plan to close our facility in santa clara , california ; the cost savings from re-purposing fab 5 for the manufacture of discrete and specialty products in addition to a lower volume of a diversified set of standard products and transferring the manufacture of certain higher volume products to other facilities ; our anticipated level of capital expenditures ; continuation and amount of quarterly cash dividends ; the sufficiency of our existing sources of liquidity to finance anticipated capital expenditures and otherwise meet our anticipated cash requirements , and the effects that our contractual obligations are expected to have on them ; the impact of seasonality on our business ; our belief that our it system compromise has not had a material adverse effect on our business or resulted in any material damage to us ; our expectation that we will continue to be the target of attacks on our data , attempts to breach our security and attempts to introduce malicious software into our it systems ; the accuracy of our estimates used in valuing employee equity awards ; that the resolution of legal actions will not have a material effect on our business , and the accuracy of our assessment of the probability of loss and range of potential loss ; the recoverability of our deferred tax assets ; the adequacy of our tax reserves to offset any potential tax liabilities , having the appropriate support for our income tax positions and the accuracy of our estimated tax rate ; our belief that the expiration of any tax holidays will not have a material impact on our financial statements or effective tax rate ; the impact of our intra-group asset transfers , and the geographical dispersion of our earnings and losses on our effective tax rate ; our belief that the estimates used in preparing our consolidated financial statements are reasonable ; our actions to vigorously and aggressively defend and protect our intellectual property on a worldwide basis ; our ability to obtain patents and intellectual property licenses and minimize the effects of litigation ; the level of risk we are exposed to for product liability claims or indemnification claims ; the effect of fluctuations in market interest rates on our income and or cash flows ; the effect of fluctuations in currency rates ; that we could increase our borrowings or seek additional equity or debt financing to maintain or expand our facilities , or to fund cash dividends , share repurchases , acquisitions or other corporate activities , and that the timing and amount of such financing requirements will depend on a number of factors ; our intention to satisfy the lesser of the principal amount or the conversion value of our debentures in cash ; our intention to invest substantially all of our foreign subsidiary earnings , as well as our capital in our foreign subsidiaries , indefinitely outside of the u.s. in those jurisdictions in which we would incur significant , additional costs upon repatriation of such amounts . changes to the taxation of undistributed foreign earnings could change our future intentions regarding reinvestment of such earnings ; our belief that the effect the new tax laws will have on low-taxed income of foreign subsidiaries will have the most significant , adverse impact ; and our ability to collect accounts receivable . our actual results could differ materially from the results anticipated in these forward-looking statements as a result of certain factors including those set forth in `` item 1a – risk factors , `` and elsewhere in this form 10-k . although we believe that the expectations reflected in our forward-looking statements are reasonable , we can not guarantee future results , levels of activity , performance or achievements . you should not place undue reliance on these forward-looking statements . we disclaim any obligation to update the information contained in any forward-looking statement . 36 introduction the following discussion should be read in conjunction with the consolidated financial statements and the related notes that appear elsewhere in this document , as well as with other sections of this annual report on form 10-k , including `` item 1 – business ; `` `` item 6 – selected financial data ; `` and `` item 8 – financial statements and supplementary data . story_separator_special_tag after the transaction price has been allocated , we recognize revenue when the performance obligation is satisfied . substantially all of the revenue generated from contracts with distributors is recognized at the time risk and title of the inventory transfers to the distributor . sales to our direct customers are generally governed by a purchase order and an order acknowledgment . sales to direct customers usually do not meet the definition of a contract , as defined by asc 606 , until shipment of the product occurs . generally , the transaction price associated with contracts with direct customers is set at the standalone selling price and is not variable . usually , there is only a single performance obligation in the contract , and therefore the entire transaction price is allocated to the single performance obligation . after the transaction price has been allocated , we recognize revenue when the performance obligation is satisfied . substantially all of the revenue generated from contracts with direct customers is recognized at the time risk and title of the inventory transfers to the customer . revenue generated from our licensees is governed by licensing agreements . our primary performance obligation related to these agreements is to provide the licensee the right to use the intellectual property . the final transaction price is determined by multiplying the usage of the license by the royalty , which is fixed in the licensing agreement . revenue is recognized as usage of the license occurs . business combinations all of our business combinations are accounted for at fair value under the acquisition method of accounting . under the acquisition method of accounting , ( i ) acquisition-related costs , except for those costs incurred to issue debt or equity securities , will be expensed in the period incurred ; ( ii ) non-controlling interests will be valued at fair value at the acquisition date ; ( iii ) in-process research and development will be recorded at fair value as an intangible asset at the acquisition date and amortized once the technology reaches technological feasibility ; ( iv ) restructuring costs associated with a business combination will be expensed subsequent to the acquisition date ; and ( v ) changes in deferred tax asset valuation allowances and income tax uncertainties after the acquisition date will be recognized through income tax expense . the measurement of the fair value of assets acquired and liabilities assumed requires significant judgment . the valuation of intangible assets , in particular , requires that we use valuation techniques such as the income approach . the income approach includes the use of a discounted cash flow model , which includes discounted cash flow scenarios and requires the following significant estimates : revenue , expenses , capital spending and other costs , and discount rates based on the respective risks of the cash flows . under the acquisition method of accounting , the aggregate amount of consideration we pay for a company is allocated to net tangible assets and intangible assets based on their estimated fair values as of the acquisition date . the excess of the purchase price over the value of the net tangible assets and intangible assets is recorded to goodwill . on an annual basis , we test goodwill for impairment and through march 31 , 2020 , we have never recorded an impairment charge against our goodwill balance . 40 share-based compensation we measure at fair value and recognize compensation expense for all share-based payment awards , including grants of employee stock options , restricted stock units ( rsus ) and employee stock purchase rights , to be recognized in our financial statements based on their respective grant date fair values . we utilize rsus as our primary equity incentive compensation instrument for employees . share-based compensation cost is measured on the grant date based on the fair market value of our common stock discounted for expected future dividends and is recognized as expense on a straight-line basis over the requisite service periods . total share-based compensation expense recognized during the fiscal 2020 was $ 170.2 million , of which $ 149.3 million was reflected in operating expenses and $ 20.9 million was reflected in cost of sales . total share-based compensation included in our inventory balance was $ 14.4 million at march 31 , 2020 . if there are any modifications or cancellations of the underlying unvested securities , we may be required to accelerate , increase or cancel any remaining unearned share-based compensation expense . future share-based compensation expense and unearned share-based compensation will increase to the extent that we grant additional equity awards to employees or we assume unvested equity awards in connection with acquisitions . inventories inventories are valued at the lower of cost or net realizable value using the first-in , first-out method . we write down our inventory for estimated obsolescence or unmarketable inventory in an amount equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions . if actual market conditions are less favorable than those we projected , additional inventory write-downs may be required . inventory impairment charges establish a new cost basis for inventory and charges are not subsequently reversed to income even if circumstances later suggest that increased carrying amounts are recoverable . in estimating our inventory obsolescence , we primarily evaluate estimates of demand over a 12-month period and record impairment charges for inventory on hand in excess of the estimated 12-month demand . estimates for projected 12-month demand are generally based on the average shipments of the prior three-month period , which are then annualized to adjust for any potential seasonality in our business . the estimated 12-month demand is compared to our most recently developed sales forecast to further reconcile the 12-month demand estimate . management reviews and adjusts the estimates as appropriate based on specific situations . for example , demand

these decreases were partially offset by an increase in nonfuel gross margin in excess of site level operating expenses generated by our locations . as described under the heading `` other disputes `` in note 13 to the notes to consolidated financial statements included in item 15 of this annual report , comdata has purported to terminate its merchant agreement with us and , beginning february 1 , 2017 , unilaterally increased the fees it withholds from the transaction settlement payments due to us . we believe that comdata has wrongfully terminated our agreement and raised the fees we pay comdata , and we are pursuing litigation against comdata . however , if we do not prevail in our pending litigation against comdata , we may not be able to recover the increased fees comdata charges us through higher prices to customers , and our operating expenses may increase . 38 factors affecting comparability transaction agreement with hpt on june 1 , 2015 , we entered a transaction agreement with hpt , which we and hpt amended on june 22 , 2016. we refer to this amended transaction agreement as the transaction agreement . under the transaction agreement , among other things , we agreed to sell to hpt 16 existing travel centers we owned and certain assets at 11 properties currently leased from hpt , plus four additional travel centers upon our completion of their development , and hpt agreed to lease back these properties and assets to us under the hpt leases . we also agreed to purchase from hpt five travel centers we previously leased from hpt . during the year ended december 31 , 2015 , we sold 14 travel centers and certain assets at 11 properties currently leased from hpt for an aggregate of $ 279,383 and purchased five travel centers from hpt for $ 45,042 . the resulting net increase of our minimum annual rent under our ta leases was $ 20,153. on march 31 , 2016 , we sold one of the development properties to hpt for $ 19,683 , and our minimum annual rent due to hpt increased by $ 1,673 . on june 22 , 2016 , we sold two existing travel centers for an aggregate of $ 23,876 , and our minimum annual rent due to hpt increased by $ 2,029 . on june 30 , 2016 , we sold one of the development properties to hpt for $ 22,297 , and our minimum annual rent due to hpt increased by $ 1,895 . on september 30 , 2016 , we sold one of the development properties to hpt for $ 16,557 , and our minimum annual rent due to hpt increased by $ 1,407 . see notes 7 and 12 to the notes to consolidated financial statements included in item 15 of this annual report for more information about our transaction agreement with hpt . acquired and developed sites since the beginning of 2011 , when we began our acquisition program , to december 31 , 2016 , we have invested $ 855,003 to develop , purchase and improve 318 travel centers , convenience stores and standalone restaurants . for the year ended december 31 , 2016 , these investments produced site level gross margin in excess of site level operating expenses of $ 99,957 , or , on a sequential basis , $ 8,253 , or 9.0 % , greater than site level gross margin in excess of site level operating expenses for the twelve months ended september 30 , 2016. we believe that our investments require a period after they are developed or acquired and upgrades are completed to reach their expected stabilized financial results , generally three years for travel centers and one year for convenience stores . we acquired or developed 39 travel centers during the 2011 to 2016 period . of those , 36 are included in the `` travel centers segment same site operating data `` for the years ended december 31 , 2016 and 2015. as of december 31 , 2016 , we have invested $ 312,139 ( including improvements ) in these 36 locations , and they generated $ 54,271 of gross margin in excess of site level operating expenses during the year ended december 31 , 2016 . the remaining three locations were developed by us for a total investment of $ 64,862 ; and they generated $ 3,526 of gross margin in excess of site level operating expenses during the year ended december 31 , 2016 ; however , we have operated these locations for less than the full year 2016 ( one opened in each of january , march and may ) . we acquired 228 convenience stores during the 2013 to 2016 period . of these , 31 are included in the `` convenience store segment same site operating data `` for the years ended december 31 , 2016 and 2015. as of december 31 , 2016 , we have invested $ 66,491 ( including improvements ) in these 31 locations , and they generated $ 11,608 of gross margin in excess of site level operating expenses during the year ended december 31 , 2016 . the remaining 197 locations were acquired by us in 2015 or 2016 for a total investment of $ 376,854 ( including improvements ) , and these convenience stores generated $ 23,237 of gross margin in excess of site level operating expenses during the year ended december 31 , 2016 . the 29 convenience stores we acquired during 2016 were operated by us for an average of nine months during 2016 and some of these were fully or partially out of service while being renovated . story_separator_special_tag replace_table_token_14_th 46 the following table presents our same site operating results for our convenience store segment for the year ended december 31 , 2016 , as compared to the year ended december 31 , 2015 , and for the year ended december 31 , 2015 , as compared to the year ended december 31 , 2014 . replace_table_token_15_th year ended december 31 , 2016 , as compared to december 31 , 2015 revenues . fuel revenues for 2016 increase d by $ 195,853 , or 87.1 % , as compared to 2015 . the table below shows the changes in total fuel revenues for our convenience store segment based on price and volume changes between periods . replace_table_token_16_th the increase in fuel revenues in our convenience store segment was due to sales volume at acquired locations , partially offset by decreases in market prices for fuel and a decrease in fuel sales volume on a same site basis . on a same site basis , fuel sales volume for 2016 decrease d by 632 gallons , or 1.5 % , as compared to 2015 . the decrease in same site fuel sales volume was primarily due to our adjusting fuel sales pricing to manage fuel sales volume and profitability and the effects of competition . nonfuel revenues for 2016 increase d by $ 139,655 , or 90.0 % , as compared to 2015 . the increase in nonfuel revenues was primarily due to acquired locations . on a same site basis , nonfuel revenues increase d modestly as operations at acquired sites continue to stabilize . site level gross margin in excess of site level operating expenses . site level gross margin in excess of site level operating expenses for 2016 increase d by $ 19,401 , or 112.4 % , as compared to 2015 , primarily due to acquired locations . 47 on a same site basis , site level gross margin in excess of site level operating expenses for 2016 increase d as compared to 2015 due to an increase in nonfuel gross margin due to a favorable change in the mix of products and services sold and an increase in fuel gross margin primarily resulting from our continued focus on adjusting our fuel sales pricing to manage profitability . year ended december 31 , 2015 , as compared to december 31 , 2014 revenues . fuel revenues for 2015 increase d by $ 111,673 , or 98.6 % as compared to 2014 . the table below shows the changes in total fuel revenues for our convenience store segment based on price and volume changes between periods . replace_table_token_17_th the increase in fuel revenues at our convenience store segment reflected increases in sales volume from both sites we acquired during 2015 and same sites , partially offset by decreases in market prices for fuel . on a same site basis , fuel sales volume for 2015 increase d by 1,642 gallons , or 4.1 % , from 2014 . nonfuel revenues for 2015 increase d by $ 78,563 , or 102.5 % , from 2014 . the increase in nonfuel revenues was primarily due to the sites we acquired during 2015 . on a same site basis , nonfuel revenues increase d by $ 3,023 , or 3.9 % , for 2015 , as compared to 2014 , primarily due to the favorable effects of certain of our marketing initiatives . site level gross margin in excess of site level operating expenses . site level gross margin in excess of site level operating expenses for 2015 increase d by $ 8,425 , or 95.4 % , from 2014 , due to locations acquired in 2015 and a $ 3,550 , or 40.2 % , increase on a same site basis . on a same site basis , site level gross margin in excess of site level operating expenses increase d for 2015 as compared to 2014 , due to an increase in nonfuel gross margin due to a favorable change in the mix or products and services sold , an increase in fuel gross margin primarily resulting from our continued focus on adjusting our fuel sales pricing to manage fuel sales volume and profitability , partially offset by an increase in site level operating expenses . 48 liquidity and capital resources our principal liquidity requirements are to meet our operating and financing costs and to fund our capital expenditures , acquisitions and working capital requirements . our principal sources of liquidity to meet these requirements are our : cash balance ; operating cash flow ; our credit facility , with a current maximum availability of $ 200,000 , or our credit facility , subject to limits based on our qualified collateral ; sales to hpt of improvements we make to the sites we lease from hpt and the development site to be sold to hpt under the transaction agreement ; potential issuances of new debt and equity securities ; and potential financing or selling of unencumbered real estate that we own . we believe that the primary risks we currently face with respect to our operating cash flow are : continuing decreased demand for our fuel products resulting from regulatory and market efforts for improved engine fuel efficiency and fuel conservation generally ; decreased demand for our products and services that we may experience as a result of competition ; a significant portion of our expenses are fixed in nature , which may restrict our ability to realize a sufficient reduction in our expenses to offset a reduction in our revenues ; the possible inability of recently acquired or developed properties to generate the stabilized financial results we expect ; the risk of an economic slowdown or recession ; and the negative impacts on our gross margins and working capital requirements if there were a return to the higher level of prices for petroleum products we experienced during the first half of 2014 and in prior years ,

cash flow from operating activities in 2016 , we had net cash inflows from operating activities of $ 110,777 , a decrease of $ 26,111 compared to $ 136,888 in 2015 . the decrease was primarily due a decrease in cash from the net income attributable to common shareholders in 2015 to net loss attributable to common shareholders in 2016 , partially offset by lower working capital in 2016 as compared to 2015 . in 2015 , we had net cash inflows from operating activities of $ 136,888 , a decrease of $ 24,237 compared to $ 161,125 in 2014 . the decrease was primarily due to lower net income partially offset by lower net working capital in 2015 as compared to 2014 . 50 cash flow from investing activities in 2016 , we had cash outflows from investing activities of $ 220,038 , a decrease of $ 17,439 compared to $ 237,477 in 2015 . the decrease was primarily due to a reduction in our acquisition activities , partially offset by lower proceeds from asset sales to hpt and higher capital expenditures in 2016 than in 2015. in 2016 , we invested $ 71,935 for the acquisition of 29 convenience stores , 11 standalone restaurants and franchise agreements for an additional 39 standalone restaurants and invested $ 329,997 for other capital improvements to our properties . in 2016 , we received $ 193,082 of proceeds from the sales of five properties and assets to hpt , including improvements to properties we lease from hpt . in 2015 , we had cash outflows from investing activities of $ 237,477 , an increase of $ 103,059 compared to $ 134,418 in 2014 . the increase was primarily due to capital expenditures and cash invested for acquisitions , partially offset by proceeds from the sale of assets to hpt . in 2015 , we invested $ 320,290 for the acquisition of three travel centers and 169 convenience stores , and we made investments of $ 295,437 for other capital improvements to our properties .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 in 2016 , we had net cash inflows from operating activities of $ 110,777 , a decrease of $ 26,111 compared to $ 136,888 in 2015 . the decrease was primarily due a decrease in cash from the net income attributable to common shareholders in 2015 to net loss attributable to common shareholders in 2016 , partially offset by lower working capital in 2016 as compared to 2015 . in 2015 , we had net cash inflows from operating activities of $ 136,888 , a decrease of $ 24,237 compared to $ 161,125 in 2014 . the decrease was primarily due to lower net income partially offset by lower net working capital in 2015 as compared to 2014 . 50 cash flow from investing activities in 2016 , we had cash outflows from investing activities of $ 220,038 , a decrease of $ 17,439 compared to $ 237,477 in 2015 . the decrease was primarily due to a reduction in our acquisition activities , partially offset by lower proceeds from asset sales to hpt and higher capital expenditures in 2016 than in 2015. in 2016 , we invested $ 71,935 for the acquisition of 29 convenience stores , 11 standalone restaurants and franchise agreements for an additional 39 standalone restaurants and invested $ 329,997 for other capital improvements to our properties . in 2016 , we received $ 193,082 of proceeds from the sales of five properties and assets to hpt , including improvements to properties we lease from hpt . in 2015 , we had cash outflows from investing activities of $ 237,477 , an increase of $ 103,059 compared to $ 134,418 in 2014 . the increase was primarily due to capital expenditures and cash invested for acquisitions , partially offset by proceeds from the sale of assets to hpt . in 2015 , we invested $ 320,290 for the acquisition of three travel centers and 169 convenience stores , and we made investments of $ 295,437 for other capital improvements to our properties . ``` Suspicious Activity Report : these decreases were partially offset by an increase in nonfuel gross margin in excess of site level operating expenses generated by our locations . as described under the heading `` other disputes `` in note 13 to the notes to consolidated financial statements included in item 15 of this annual report , comdata has purported to terminate its merchant agreement with us and , beginning february 1 , 2017 , unilaterally increased the fees it withholds from the transaction settlement payments due to us . we believe that comdata has wrongfully terminated our agreement and raised the fees we pay comdata , and we are pursuing litigation against comdata . however , if we do not prevail in our pending litigation against comdata , we may not be able to recover the increased fees comdata charges us through higher prices to customers , and our operating expenses may increase . 38 factors affecting comparability transaction agreement with hpt on june 1 , 2015 , we entered a transaction agreement with hpt , which we and hpt amended on june 22 , 2016. we refer to this amended transaction agreement as the transaction agreement . under the transaction agreement , among other things , we agreed to sell to hpt 16 existing travel centers we owned and certain assets at 11 properties currently leased from hpt , plus four additional travel centers upon our completion of their development , and hpt agreed to lease back these properties and assets to us under the hpt leases . we also agreed to purchase from hpt five travel centers we previously leased from hpt . during the year ended december 31 , 2015 , we sold 14 travel centers and certain assets at 11 properties currently leased from hpt for an aggregate of $ 279,383 and purchased five travel centers from hpt for $ 45,042 . the resulting net increase of our minimum annual rent under our ta leases was $ 20,153. on march 31 , 2016 , we sold one of the development properties to hpt for $ 19,683 , and our minimum annual rent due to hpt increased by $ 1,673 . on june 22 , 2016 , we sold two existing travel centers for an aggregate of $ 23,876 , and our minimum annual rent due to hpt increased by $ 2,029 . on june 30 , 2016 , we sold one of the development properties to hpt for $ 22,297 , and our minimum annual rent due to hpt increased by $ 1,895 . on september 30 , 2016 , we sold one of the development properties to hpt for $ 16,557 , and our minimum annual rent due to hpt increased by $ 1,407 . see notes 7 and 12 to the notes to consolidated financial statements included in item 15 of this annual report for more information about our transaction agreement with hpt . acquired and developed sites since the beginning of 2011 , when we began our acquisition program , to december 31 , 2016 , we have invested $ 855,003 to develop , purchase and improve 318 travel centers , convenience stores and standalone restaurants . for the year ended december 31 , 2016 , these investments produced site level gross margin in excess of site level operating expenses of $ 99,957 , or , on a sequential basis , $ 8,253 , or 9.0 % , greater than site level gross margin in excess of site level operating expenses for the twelve months ended september 30 , 2016. we believe that our investments require a period after they are developed or acquired and upgrades are completed to reach their expected stabilized financial results , generally three years for travel centers and one year for convenience stores . we acquired or developed 39 travel centers during the 2011 to 2016 period . of those , 36 are included in the `` travel centers segment same site operating data `` for the years ended december 31 , 2016 and 2015. as of december 31 , 2016 , we have invested $ 312,139 ( including improvements ) in these 36 locations , and they generated $ 54,271 of gross margin in excess of site level operating expenses during the year ended december 31 , 2016 . the remaining three locations were developed by us for a total investment of $ 64,862 ; and they generated $ 3,526 of gross margin in excess of site level operating expenses during the year ended december 31 , 2016 ; however , we have operated these locations for less than the full year 2016 ( one opened in each of january , march and may ) . we acquired 228 convenience stores during the 2013 to 2016 period . of these , 31 are included in the `` convenience store segment same site operating data `` for the years ended december 31 , 2016 and 2015. as of december 31 , 2016 , we have invested $ 66,491 ( including improvements ) in these 31 locations , and they generated $ 11,608 of gross margin in excess of site level operating expenses during the year ended december 31 , 2016 . the remaining 197 locations were acquired by us in 2015 or 2016 for a total investment of $ 376,854 ( including improvements ) , and these convenience stores generated $ 23,237 of gross margin in excess of site level operating expenses during the year ended december 31 , 2016 . the 29 convenience stores we acquired during 2016 were operated by us for an average of nine months during 2016 and some of these were fully or partially out of service while being renovated . story_separator_special_tag replace_table_token_14_th 46 the following table presents our same site operating results for our convenience store segment for the year ended december 31 , 2016 , as compared to the year ended december 31 , 2015 , and for the year ended december 31 , 2015 , as compared to the year ended december 31 , 2014 . replace_table_token_15_th year ended december 31 , 2016 , as compared to december 31 , 2015 revenues . fuel revenues for 2016 increase d by $ 195,853 , or 87.1 % , as compared to 2015 . the table below shows the changes in total fuel revenues for our convenience store segment based on price and volume changes between periods . replace_table_token_16_th the increase in fuel revenues in our convenience store segment was due to sales volume at acquired locations , partially offset by decreases in market prices for fuel and a decrease in fuel sales volume on a same site basis . on a same site basis , fuel sales volume for 2016 decrease d by 632 gallons , or 1.5 % , as compared to 2015 . the decrease in same site fuel sales volume was primarily due to our adjusting fuel sales pricing to manage fuel sales volume and profitability and the effects of competition . nonfuel revenues for 2016 increase d by $ 139,655 , or 90.0 % , as compared to 2015 . the increase in nonfuel revenues was primarily due to acquired locations . on a same site basis , nonfuel revenues increase d modestly as operations at acquired sites continue to stabilize . site level gross margin in excess of site level operating expenses . site level gross margin in excess of site level operating expenses for 2016 increase d by $ 19,401 , or 112.4 % , as compared to 2015 , primarily due to acquired locations . 47 on a same site basis , site level gross margin in excess of site level operating expenses for 2016 increase d as compared to 2015 due to an increase in nonfuel gross margin due to a favorable change in the mix of products and services sold and an increase in fuel gross margin primarily resulting from our continued focus on adjusting our fuel sales pricing to manage profitability . year ended december 31 , 2015 , as compared to december 31 , 2014 revenues . fuel revenues for 2015 increase d by $ 111,673 , or 98.6 % as compared to 2014 . the table below shows the changes in total fuel revenues for our convenience store segment based on price and volume changes between periods . replace_table_token_17_th the increase in fuel revenues at our convenience store segment reflected increases in sales volume from both sites we acquired during 2015 and same sites , partially offset by decreases in market prices for fuel . on a same site basis , fuel sales volume for 2015 increase d by 1,642 gallons , or 4.1 % , from 2014 . nonfuel revenues for 2015 increase d by $ 78,563 , or 102.5 % , from 2014 . the increase in nonfuel revenues was primarily due to the sites we acquired during 2015 . on a same site basis , nonfuel revenues increase d by $ 3,023 , or 3.9 % , for 2015 , as compared to 2014 , primarily due to the favorable effects of certain of our marketing initiatives . site level gross margin in excess of site level operating expenses . site level gross margin in excess of site level operating expenses for 2015 increase d by $ 8,425 , or 95.4 % , from 2014 , due to locations acquired in 2015 and a $ 3,550 , or 40.2 % , increase on a same site basis . on a same site basis , site level gross margin in excess of site level operating expenses increase d for 2015 as compared to 2014 , due to an increase in nonfuel gross margin due to a favorable change in the mix or products and services sold , an increase in fuel gross margin primarily resulting from our continued focus on adjusting our fuel sales pricing to manage fuel sales volume and profitability , partially offset by an increase in site level operating expenses . 48 liquidity and capital resources our principal liquidity requirements are to meet our operating and financing costs and to fund our capital expenditures , acquisitions and working capital requirements . our principal sources of liquidity to meet these requirements are our : cash balance ; operating cash flow ; our credit facility , with a current maximum availability of $ 200,000 , or our credit facility , subject to limits based on our qualified collateral ; sales to hpt of improvements we make to the sites we lease from hpt and the development site to be sold to hpt under the transaction agreement ; potential issuances of new debt and equity securities ; and potential financing or selling of unencumbered real estate that we own . we believe that the primary risks we currently face with respect to our operating cash flow are : continuing decreased demand for our fuel products resulting from regulatory and market efforts for improved engine fuel efficiency and fuel conservation generally ; decreased demand for our products and services that we may experience as a result of competition ; a significant portion of our expenses are fixed in nature , which may restrict our ability to realize a sufficient reduction in our expenses to offset a reduction in our revenues ; the possible inability of recently acquired or developed properties to generate the stabilized financial results we expect ; the risk of an economic slowdown or recession ; and the negative impacts on our gross margins and working capital requirements if there were a return to the higher level of prices for petroleum products we experienced during the first half of 2014 and in prior years ,

fiscal 2016—a look at the upcoming year entering 2016 we remain cautious with our expectations . our focus will be on continued execution of our core strategies as well as strategic investments centered on long-term quality growth . these investments will be largely focused on continued store growth , both domestically and international , the roll-out of our new customer engagement suite and continued investments in our people through acquisition , retention , and statutory wage increases around the country . as we are closer to our targeted number of stores in north america , we expect that store growth in fiscal 2016 will be less than in fiscal 2015 with an estimated 34 stores opening during the fiscal year compared with 57 stores in fiscal 2015. this includes 7 additional stores in europe , an increase from the 6 stores added in 2015. in 2016 we will invest in the roll-out of our customer engagement suite focused on 27 integrating our on-line and in-store point of sale ( pos ) systems , order management system ( oms ) , and transportation management system ( tms ) improving our efficiency and further enhancing our omni-channel capabilities . in fiscal 2016 , excluding 2015 costs associated with the acquisition of blue tomato and one-time costs associated with the closing of our kansas facility , we expect our cost structure will grow at a higher rate than 2015. we anticipate inventory levels per square foot to be flat or grow slightly . excluding any possible share buy-backs , we expect cash , short-term investments and working capital to increase , and do not anticipate any new borrowings during the year . long-term we aim to grow sales annually and grow operating profit at a faster rate than sales by focusing on the changing consumer environment while managing our cost structure . general net sales constitute gross sales ( net of actual and estimated returns and deductions for promotions ) and shipping revenue . net sales include our store sales and our ecommerce sales . we record the sale of gift cards as a current liability and recognize revenue when a customer redeems a gift card . additionally , the portion of gift cards that will not be redeemed ( “gift card breakage” ) is recognized in net sales after 24 months , at which time the likelihood of redemption is considered remote based on our historical redemption data . we report “comparable sales” based on net sales beginning on the first anniversary of the first day of operation of a new store or ecommerce business . we operate a sales strategy that integrates our stores with our ecommerce platform . there is significant interaction between our store sales and our ecommerce sales channels and we believe that they are utilized in tandem to serve our customers . therefore , our comparable sales also include our ecommerce sales . changes in our comparable sales between two periods are based on net sales of store or ecommerce businesses which were in operation during both of the two periods being compared and , if a store or ecommerce business is included in the calculation of comparable sales for only a portion of one of the two periods being compared , then that store or ecommerce business is included in the calculation for only the comparable portion of the other period . any change in square footage of an existing comparable store , including remodels and relocations , does not eliminate that store from inclusion in the calculation of comparable sales . any store or ecommerce business that we acquire will be included in the calculation of comparable sales after the first anniversary of the acquisition date . current year foreign exchange rates are applied to both current year and prior year comparable sales to achieve a consistent basis for comparison . there may be variations in the way in which some of our competitors and other apparel retailers calculate comparable sales . as a result , data herein regarding our comparable sales may not be comparable to similar data made available by our competitors or other retailers . cost of goods sold consists of branded merchandise costs and our private label merchandise costs including design , sourcing , importing and inbound freight costs . our cost of goods sold also includes shrinkage , buying , occupancy , ecommerce fulfillment , distribution and warehousing costs ( including associated depreciation ) and freight costs for store merchandise transfers . this may not be comparable to the way in which our competitors or other retailers compute their cost of goods sold . cash consideration received from vendors is reported as a reduction of cost of goods sold if the inventory has sold , a reduction of the carrying value of the inventory if the inventory is still on hand , or a reduction of selling , general and administrative expense if the amounts are reimbursements of specific , incremental and identifiable costs of selling the vendors ' products . with respect to the freight component of our ecommerce sales , amounts billed to our customers are included in net sales and the related freight cost is charged to cost of goods sold . selling , general and administrative expenses consist primarily of store personnel wages and benefits , administrative staff and infrastructure expenses , freight costs for merchandise shipments from the distribution centers to the stores , store supplies , depreciation on fixed assets at our home office and stores , facility expenses , training expenses and advertising and marketing costs . credit card fees , insurance , public company expenses , legal expenses , amortization of intangibles , and other miscellaneous operating costs are also included in selling , 28 general and administrative expenses . this may not be comparable to the way in which our competitors or other retailers compute their selling , general and administrative expenses . story_separator_special_tag our fixed assets accounting methodology contains uncertainties because it requires management to make estimates with respect to the useful lives of our fixed assets that we believe are reasonable . we do not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions we use to calculate fixed asset impairment losses . however , if actual results are not consistent with our estimates and assumptions , our operating results could be adversely affected . declines in projected cash flow of the assets could result in impairment . although management believes that the current useful life estimates assigned to our fixed assets are reasonable , factors could cause us to change our estimates , thus affecting the future calculation of depreciation . 36 description judgments and uncertainties effect if actual results differ from assumptions revenue recognition revenue is recognized upon purchase at our retail store locations . for our ecommerce sales , revenue is recognized upon delivery to the customer . revenue is recorded net of sales returns and deductions for promotions . revenue is not recorded on the sale of gift cards . we record the sale of gift cards as a current liability and recognize revenue when a customer redeems a gift card . additionally , the portion of gift cards that will not be redeemed ( “gift card breakage” ) is recognized in net sales after 24 months , at which time the likelihood of redemption is considered remote based on our historical redemption data . our revenue recognition accounting methodology contains uncertainties because it requires management to make assumptions regarding delivery to our customers , future sales returns and the amount and timing of gift cards projected to be redeemed by gift card recipients . our estimate of the amount and timing of sales returns and gift cards to be redeemed is based primarily on historical transaction experience . we have not made any material changes in the accounting methodology used to measure future sales returns or recognize revenue for our gift card program in the past three fiscal years . we do not believe there is a reasonable likelihood that there will be a material change in the future estimates or assumptions we use to recognize revenue . 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 in our sales return reserve at january 30 , 2016 would have decreased net income by $ 0.1 million in fiscal 2015. a 10 % increase in our unredeemed gift card breakage life at january 30 , 2016 would have decreased net income by $ 0.5 million in fiscal 2015. stock-based compensation we grant restricted stock awards , restricted stock units and non-qualified stock options to employees and non-employee directors . we determine the fair value of our restricted stock awards and restricted stock units based on the closing market price of our stock on the grant date . in determining the fair value of our stock options , we use the black-scholes option pricing model . the estimated fair value of stock-based awards is recognized as compensation expense over the vesting period , net of estimated forfeitures . the calculation of stock-based compensation expense requires management to make assumptions and to apply judgment to estimate the number of stock awards that will ultimately vest and to determine the fair value of our stock option awards . these assumptions and judgments include estimating future employee turnover rates and the inputs to the black-scholes option pricing model , including expected term . changes in these assumptions can materially affect our stock-based compensation expense . we do not believe there is a reasonable likelihood there will be a material change in the future estimates or assumptions we use to determine stock-based compensation expense . however , if actual results are not consistent with our estimates or assumptions , we may be exposed to changes in stock-based compensation expense that could be material . 37 description judgments and uncertainties effect if actual results differ from assumptions accounting for income taxes as part of the process of preparing the consolidated financial statements , income taxes are estimated for each of the jurisdictions in which we operate . this process involves estimating actual current tax exposure together with assessing temporary differences resulting from differing treatment of items for tax and accounting purposes . these differences result in deferred tax assets and liabilities , which are included on the consolidated balance sheets . valuation allowances may be established when necessary to reduce deferred tax assets to the amount expected to be realized . we regularly evaluate the likelihood of realizing the benefit for income tax positions we have taken in various federal , state and foreign filings by considering all relevant facts , circumstances and information available to us . if we believe it is more likely than not that our position will be sustained , we recognize a benefit at the largest amount that we believe is cumulatively greater than 50 % likely to be realized . significant judgment is required in evaluating our tax positions and determining our provision for income taxes . during the ordinary course of business , there are many transactions and calculations for which the ultimate tax determination is uncertain . for example , our effective tax rates could be adversely affected by earnings being lower than anticipated in jurisdictions where we have lower statutory rates and higher than anticipated in jurisdictions where we have higher statutory rates , by changes in the valuation of our deferred tax assets and liabilities or by changes in the relevant tax , accounting and other laws , regulations , principles and interpretations . unrecognized tax benefits require significant management judgment regarding applicable statutes and their related interpretation and our particular facts and circumstances . although management believes that the income tax related

liquidity and capital resources our primary uses of cash are for operational expenditures , inventory purchases and capital investments , including new stores , store remodels , store relocations , store fixtures and ongoing infrastructure improvements . additionally , we may use cash for the repurchase of our common stock . refer to note 12 , “stockholders ' equity” of the notes to consolidated financial statements for further discussion of the repurchase plan . historically , our main source of liquidity has been cash flows from operations . the significant components of our working capital are inventories and liquid assets such as cash , cash equivalents , current marketable securities and receivables , reduced by accounts payable and accrued expenses . our working capital position benefits from the fact that we generally collect cash from sales to customers the same day or within several days of the related sale , while we typically have longer payment terms with our vendors . at january 30 , 2016 and january 31 , 2015 , cash , cash equivalents and current marketable securities were $ 75.6 million and $ 154.6 million . working capital , the excess of current assets over current liabilities , was $ 129.8 million at the end of fiscal 2015 , a decrease of 32.2 % from $ 191.4 million at the end of fiscal 2014. the decrease in cash , cash equivalents and current marketable securities in fiscal 2015 were due primarily to the 32 $ 92.2 million repurchase of common stock and $ 34.8 million of capital expenditures primarily related to the opening of 57 new stores in fiscal 2015 and 19 remodels and relocations , partially offset by cash provided by operating activities of $ 48.6 million . the following table summarizes our cash flows from operating , investing and financing activities ( in thousands ) : replace_table_token_11_th operating activities net cash provided by operating activities decreased by $ 41.3 million in fiscal 2015 to $ 48.6 million from $ 89.9 million in fiscal 2014. net cash provided by operating activities increased by $ 23.0 million in fiscal 2014 to $ 89.9 million from $ 66.9

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources our primary uses of cash are for operational expenditures , inventory purchases and capital investments , including new stores , store remodels , store relocations , store fixtures and ongoing infrastructure improvements . additionally , we may use cash for the repurchase of our common stock . refer to note 12 , “stockholders ' equity” of the notes to consolidated financial statements for further discussion of the repurchase plan . historically , our main source of liquidity has been cash flows from operations . the significant components of our working capital are inventories and liquid assets such as cash , cash equivalents , current marketable securities and receivables , reduced by accounts payable and accrued expenses . our working capital position benefits from the fact that we generally collect cash from sales to customers the same day or within several days of the related sale , while we typically have longer payment terms with our vendors . at january 30 , 2016 and january 31 , 2015 , cash , cash equivalents and current marketable securities were $ 75.6 million and $ 154.6 million . working capital , the excess of current assets over current liabilities , was $ 129.8 million at the end of fiscal 2015 , a decrease of 32.2 % from $ 191.4 million at the end of fiscal 2014. the decrease in cash , cash equivalents and current marketable securities in fiscal 2015 were due primarily to the 32 $ 92.2 million repurchase of common stock and $ 34.8 million of capital expenditures primarily related to the opening of 57 new stores in fiscal 2015 and 19 remodels and relocations , partially offset by cash provided by operating activities of $ 48.6 million . the following table summarizes our cash flows from operating , investing and financing activities ( in thousands ) : replace_table_token_11_th operating activities net cash provided by operating activities decreased by $ 41.3 million in fiscal 2015 to $ 48.6 million from $ 89.9 million in fiscal 2014. net cash provided by operating activities increased by $ 23.0 million in fiscal 2014 to $ 89.9 million from $ 66.9 ``` Suspicious Activity Report : fiscal 2016—a look at the upcoming year entering 2016 we remain cautious with our expectations . our focus will be on continued execution of our core strategies as well as strategic investments centered on long-term quality growth . these investments will be largely focused on continued store growth , both domestically and international , the roll-out of our new customer engagement suite and continued investments in our people through acquisition , retention , and statutory wage increases around the country . as we are closer to our targeted number of stores in north america , we expect that store growth in fiscal 2016 will be less than in fiscal 2015 with an estimated 34 stores opening during the fiscal year compared with 57 stores in fiscal 2015. this includes 7 additional stores in europe , an increase from the 6 stores added in 2015. in 2016 we will invest in the roll-out of our customer engagement suite focused on 27 integrating our on-line and in-store point of sale ( pos ) systems , order management system ( oms ) , and transportation management system ( tms ) improving our efficiency and further enhancing our omni-channel capabilities . in fiscal 2016 , excluding 2015 costs associated with the acquisition of blue tomato and one-time costs associated with the closing of our kansas facility , we expect our cost structure will grow at a higher rate than 2015. we anticipate inventory levels per square foot to be flat or grow slightly . excluding any possible share buy-backs , we expect cash , short-term investments and working capital to increase , and do not anticipate any new borrowings during the year . long-term we aim to grow sales annually and grow operating profit at a faster rate than sales by focusing on the changing consumer environment while managing our cost structure . general net sales constitute gross sales ( net of actual and estimated returns and deductions for promotions ) and shipping revenue . net sales include our store sales and our ecommerce sales . we record the sale of gift cards as a current liability and recognize revenue when a customer redeems a gift card . additionally , the portion of gift cards that will not be redeemed ( “gift card breakage” ) is recognized in net sales after 24 months , at which time the likelihood of redemption is considered remote based on our historical redemption data . we report “comparable sales” based on net sales beginning on the first anniversary of the first day of operation of a new store or ecommerce business . we operate a sales strategy that integrates our stores with our ecommerce platform . there is significant interaction between our store sales and our ecommerce sales channels and we believe that they are utilized in tandem to serve our customers . therefore , our comparable sales also include our ecommerce sales . changes in our comparable sales between two periods are based on net sales of store or ecommerce businesses which were in operation during both of the two periods being compared and , if a store or ecommerce business is included in the calculation of comparable sales for only a portion of one of the two periods being compared , then that store or ecommerce business is included in the calculation for only the comparable portion of the other period . any change in square footage of an existing comparable store , including remodels and relocations , does not eliminate that store from inclusion in the calculation of comparable sales . any store or ecommerce business that we acquire will be included in the calculation of comparable sales after the first anniversary of the acquisition date . current year foreign exchange rates are applied to both current year and prior year comparable sales to achieve a consistent basis for comparison . there may be variations in the way in which some of our competitors and other apparel retailers calculate comparable sales . as a result , data herein regarding our comparable sales may not be comparable to similar data made available by our competitors or other retailers . cost of goods sold consists of branded merchandise costs and our private label merchandise costs including design , sourcing , importing and inbound freight costs . our cost of goods sold also includes shrinkage , buying , occupancy , ecommerce fulfillment , distribution and warehousing costs ( including associated depreciation ) and freight costs for store merchandise transfers . this may not be comparable to the way in which our competitors or other retailers compute their cost of goods sold . cash consideration received from vendors is reported as a reduction of cost of goods sold if the inventory has sold , a reduction of the carrying value of the inventory if the inventory is still on hand , or a reduction of selling , general and administrative expense if the amounts are reimbursements of specific , incremental and identifiable costs of selling the vendors ' products . with respect to the freight component of our ecommerce sales , amounts billed to our customers are included in net sales and the related freight cost is charged to cost of goods sold . selling , general and administrative expenses consist primarily of store personnel wages and benefits , administrative staff and infrastructure expenses , freight costs for merchandise shipments from the distribution centers to the stores , store supplies , depreciation on fixed assets at our home office and stores , facility expenses , training expenses and advertising and marketing costs . credit card fees , insurance , public company expenses , legal expenses , amortization of intangibles , and other miscellaneous operating costs are also included in selling , 28 general and administrative expenses . this may not be comparable to the way in which our competitors or other retailers compute their selling , general and administrative expenses . story_separator_special_tag our fixed assets accounting methodology contains uncertainties because it requires management to make estimates with respect to the useful lives of our fixed assets that we believe are reasonable . we do not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions we use to calculate fixed asset impairment losses . however , if actual results are not consistent with our estimates and assumptions , our operating results could be adversely affected . declines in projected cash flow of the assets could result in impairment . although management believes that the current useful life estimates assigned to our fixed assets are reasonable , factors could cause us to change our estimates , thus affecting the future calculation of depreciation . 36 description judgments and uncertainties effect if actual results differ from assumptions revenue recognition revenue is recognized upon purchase at our retail store locations . for our ecommerce sales , revenue is recognized upon delivery to the customer . revenue is recorded net of sales returns and deductions for promotions . revenue is not recorded on the sale of gift cards . we record the sale of gift cards as a current liability and recognize revenue when a customer redeems a gift card . additionally , the portion of gift cards that will not be redeemed ( “gift card breakage” ) is recognized in net sales after 24 months , at which time the likelihood of redemption is considered remote based on our historical redemption data . our revenue recognition accounting methodology contains uncertainties because it requires management to make assumptions regarding delivery to our customers , future sales returns and the amount and timing of gift cards projected to be redeemed by gift card recipients . our estimate of the amount and timing of sales returns and gift cards to be redeemed is based primarily on historical transaction experience . we have not made any material changes in the accounting methodology used to measure future sales returns or recognize revenue for our gift card program in the past three fiscal years . we do not believe there is a reasonable likelihood that there will be a material change in the future estimates or assumptions we use to recognize revenue . 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 in our sales return reserve at january 30 , 2016 would have decreased net income by $ 0.1 million in fiscal 2015. a 10 % increase in our unredeemed gift card breakage life at january 30 , 2016 would have decreased net income by $ 0.5 million in fiscal 2015. stock-based compensation we grant restricted stock awards , restricted stock units and non-qualified stock options to employees and non-employee directors . we determine the fair value of our restricted stock awards and restricted stock units based on the closing market price of our stock on the grant date . in determining the fair value of our stock options , we use the black-scholes option pricing model . the estimated fair value of stock-based awards is recognized as compensation expense over the vesting period , net of estimated forfeitures . the calculation of stock-based compensation expense requires management to make assumptions and to apply judgment to estimate the number of stock awards that will ultimately vest and to determine the fair value of our stock option awards . these assumptions and judgments include estimating future employee turnover rates and the inputs to the black-scholes option pricing model , including expected term . changes in these assumptions can materially affect our stock-based compensation expense . we do not believe there is a reasonable likelihood there will be a material change in the future estimates or assumptions we use to determine stock-based compensation expense . however , if actual results are not consistent with our estimates or assumptions , we may be exposed to changes in stock-based compensation expense that could be material . 37 description judgments and uncertainties effect if actual results differ from assumptions accounting for income taxes as part of the process of preparing the consolidated financial statements , income taxes are estimated for each of the jurisdictions in which we operate . this process involves estimating actual current tax exposure together with assessing temporary differences resulting from differing treatment of items for tax and accounting purposes . these differences result in deferred tax assets and liabilities , which are included on the consolidated balance sheets . valuation allowances may be established when necessary to reduce deferred tax assets to the amount expected to be realized . we regularly evaluate the likelihood of realizing the benefit for income tax positions we have taken in various federal , state and foreign filings by considering all relevant facts , circumstances and information available to us . if we believe it is more likely than not that our position will be sustained , we recognize a benefit at the largest amount that we believe is cumulatively greater than 50 % likely to be realized . significant judgment is required in evaluating our tax positions and determining our provision for income taxes . during the ordinary course of business , there are many transactions and calculations for which the ultimate tax determination is uncertain . for example , our effective tax rates could be adversely affected by earnings being lower than anticipated in jurisdictions where we have lower statutory rates and higher than anticipated in jurisdictions where we have higher statutory rates , by changes in the valuation of our deferred tax assets and liabilities or by changes in the relevant tax , accounting and other laws , regulations , principles and interpretations . unrecognized tax benefits require significant management judgment regarding applicable statutes and their related interpretation and our particular facts and circumstances . although management believes that the income tax related

the adequacy of this allowance is reviewed each reporting period and adjusted as necessary . our allowance for doubtful accounts was approximately $ 93,000 and $ 73,000 at december 31 , 2013 and 2012 , respectively , which was approximately 2.1 % and 2.4 % , respectively , of gross accounts receivable . if the financial condition of our customers were to deteriorate , resulting in an impairment of their ability to make payments , or if unexpected events or significant future changes in trends were to occur , additional allowances may be required , resulting in increased bad debt expense . inventories inventories primarily are composed of raw materials and finished goods and are stated at the lower of cost or market , using the first-in , first-out method . we maintain a reserve for slow moving and obsolete inventory to reduce the carrying value of our inventories to reflect the diminution of value resulting from product obsolescence , damage or other issues affecting marketability by an amount equal to the difference between the cost of the inventory and its estimated market value . the adequacy of this reserve is reviewed each reporting period and adjusted as necessary . we regularly compare inventory quantities on hand against historical usage or forecasts related to specific items in order to evaluate obsolescence and excessive quantities . in assessing historical usage , we also qualitatively assess business trends to evaluate the reasonableness of using historical information as an estimate of future usage . a complete physical count of the inventory is conducted annually . our slow moving and obsolete inventory reserve was $ 302,296 and $ 271,994 at december 31 , 2013 and december 31 , 2012 , respectively . income taxes income taxes are accounted for under the asset and liability method . under this method , deferred tax assets and liabilities are recognized to reflect the future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases . deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the differences are expected to be recovered or settled . the temporary differences are attributable to differing methods of financial statement and income tax depreciation and reserves for trade accounts receivable and inventories . the likelihood of a material change in the company 's expected realization of deferred tax assets is dependent on , among other factors , future taxable income and settlements with tax authorities . while management believes that its judgments and interpretations regarding income taxes are appropriate , significant differences in actual experience may require future adjustments to our tax assets and liabilities , which could be material . we are also required to assess the realizability of our deferred tax assets . we evaluate positive and negative evidence and use judgments regarding past and future events , including operating results and available tax planning strategies that could be implemented to realize the deferred tax assets . based on this assessment , we determine when it is more likely than not that all or some portion of our deferred tax assets may not be realized , in which case we would be required to apply a valuation allowance to offset our deferred tax assets in an amount equal to future tax benefits that may not be realized . we currently do not apply a valuation allowance to our deferred tax assets . however , if facts and circumstances change in the future , a valuation allowance may be required . significant judgment is required in determining income tax provisions and in evaluating tax positions . we establish additional provisions for income taxes when , despite the belief that tax positions are fully supportable , there remain certain positions that do not meet the minimum probability threshold , which is a tax position that is more likely than not to be sustained upon examination by the applicable taxing authority . in the normal course of business , we and our subsidiaries are examined by various federal and state tax authorities . we regularly assess the potential outcomes of these examinations and any future examinations for the current or prior years in determining the adequacy of our provision for income taxes . we adjust the income tax provision , the current tax liability and deferred taxes in any period in which facts that give rise to an adjustment become known . the ultimate outcomes of the examinations of our income tax returns could result in increases or decreases to our recorded tax liabilities , which could affect our financial results . 7 trademarks , trade names , royalty rights , and patents - we acquired the rights to the star brite ® trademark and related products for the united states and canada in conjunction with our initial public offering during march 1981 for $ 880,000. through december 31 , 2001 , the cost of these intangible assets was amortized on a straight-line basis over an estimated useful life of 40 years . effective january 1 , 2002 and pursuant to statement of financial accounting standards no . 142 , `` goodwill and other intangible assets `` ( now codified in financial accounting standards board accounting standards codification topic 350 , `` intangibles - goodwill and other `` ) , we determined that these intangible assets have indefinite lives and therefore , we no longer recognize amortization expense . in addition , our 50 % owned joint venture , odorstar technology , llc , owns patents we use in our business . the company amortizes these patents over their remaining life on a straight line basis . story_separator_special_tag on august 6 , 2013 , the company purchased for $ 160,000 royalty rights ( previously owned by an unaffiliated company that owned the patents ultimately acquired by odorstar ) relating to sales of products encompassing odorstar 's patented technology . the company is amortizing the royalty rights over their remaining life on a straight line basis . we review the carrying values of the trademarks and patents periodically for possible impairment . our impairment review is based on a discounted cash flow approach that requires significant judgment with respect to unit volume , revenue and expense growth rates , and the selection of an appropriate discount rate . management uses estimates based on expected trends in making these assumptions . all impairment charges would be recorded for the difference between the carrying value and the net present value of estimated future cash flows , which represents the estimated fair value of the asset . management uses its judgment in assessing whether assets may have become impaired between annual valuations . indicators such as unexpected adverse economic factors , unanticipated technological change , distribution losses , competitive activities and acts by governments and courts may indicate that an asset has become impaired . results of operations : net sales were approximately $ 32,703,000 in 2013 compared to $ 31,039,000 in 2012 , an increase of $ 1,664,000 or 5.4 % . the increase in sales principally results from the resumption by our largest customer of normal buying practices following completion of its inventory reduction program related to products in our sector , which was in effect during 2012 , and increased sales to affiliated companies ( see note 9 to the consolidated financial statements included in this report ) , in addition to increased sales of marine products including star tron ® , private label products , and winterizing products . cost of goods sold and gross profit – cost of goods sold during 2013 increased approximately $ 1,403,000 or 6.9 % , to approximately $ 21,815,000 from approximately $ 20,412,000 in 2012. the increase in cost of goods sold reflects the increase in net sales and an increase in raw material costs and manufacturing overhead expenses . gross profit increased by approximately $ 262,000 or 2.5 % to approximately $ 10,889,000 in 2013 , from approximately $ 10,627,000 during 2012 , as the result of the factors described above . our gross profit percentage ( gross profit as a percentage of net sales ) decreased approximately 0.9 % , from 34.2 % in 2012 to 33.3 % in 2013. this decrease is the result of higher raw material costs , and increased manufacturing overhead expenses . advertising and promotion expense was approximately $ 2,648,000 in 2013 , an increase of approximately $ 230,000 or 9.5 % from approximately $ 2,418,000 in 2012. as a percentage of net sales , advertising and promotion expense increased from 7.8 % in 2012 to 8.1 % in 2013. the increase is primarily a result of increased promotional and marketing expenses , including our increased presence at industry trade shows . the company anticipates in 2014 that advertising and promotion expense will approximate the 2013 amount . selling and administrative expenses increased by approximately $ 803,000 or 15.7 % , from approximately $ 5,126,000 in 2012 to approximately $ 5,929,000 in 2013. the increase is principally due to an increase in stock -based compensation , legal expenses with regard to patent litigation involving odorstar ( see item 3 in this report ) , and increased selling expenses associated with our higher sales . as a percentage of net sales , selling and administrative expenses increased from 16.5 % in 2012 to 18.1 % in 2013. operating income – as a result of the foregoing , operating income decreased to approximately $ 2,312,000 in 2013 , compared to approximately $ 3,083,000 in 2012 , a decrease of $ 771,000 or 25.0 % . interest expense decreased approximately $ 31,000 to $ 67,000 in 2013 , compared to $ 98,000 in 2012. the decrease reflects lower average borrowings under our revolving line of credit , and continued reduction of our long-term debt during 2013. income taxes – we had a tax expense of approximately $ 816,000 in 2013 or 36.2 % of pretax income , compared to approximately $ 1,055,000 in 2012 or 35.3 % of pretax income . the increased rate is almost entirely due to the effect of the increased stock-based compensation . for additional information , see note 8 to the consolidated financial statements included in this report . net income and net income attributable to ocean bio-chem , inc. as a result of the items described above , net income decreased approximately 25.8 % or approximately $ 499,000 to $ 1,435,000 in 2013 from $ 1,934,000 in 2012. net income attributable to ocean bio-chem , inc. ( excluding the loss attributable to non-controlling interests ) was approximately $ 1,461,000 in 2013 , a decrease of approximately $ 501,000 or 25.5 % from approximately $ 1,962,000 in 2012 . 8 story_separator_special_tag margin-left : 0pt ; margin-right : 0pt `` > our sales in the canadian market are subject to currency fluctuations relating to the canadian dollar . we do not engage in currency hedging and address currency risk as a pricing issue . in the year ended december 31 , 2013 , we recorded approximately $ 5,000 in foreign currency translation adjustments ( decreasing shareholders equity by $ 5,000 ) . during the past few years , we have introduced a number of new products . at times , new product introductions have required us to increase our overall inventory and have resulted in lower inventory turnover rates . the effects of reduced inventory turnover have not been material to our overall operations . we believe that all required capital to maintain such increases will continue to be provided by operations and , if necessary , our current revolving line of credit or

liquidity and capital resources : our cash balance was approximately $ 3,072,000 at december 31 , 2013 compared to approximately $ 1,508,000 at december 31 , 2012. at december 31 , 2013 and december 31 , 2012 , we had no borrowings under our revolving line of credit . cash provided by operating activities for the year ended december 31 , 2013 was approximately $ 2,565,000 compared to about $ 2,775,000 for the year ended december 31 , 2012. the decrease in cash provided by operations principally results from the approximately $ 499,000 decrease in net income as compared to 2012 , offset in large part by increases in non-cash items of approximately $ 178,000 and net favorable changes in working capital of approximately $ 112,000. inventories were approximately $ 7,368,000 and $ 9,257,000 at december 31 , 2013 and 2012 , respectively , representing a decrease of approximately $ 1,889,000 or 20.4 % in 2013. the lower levels of 2013 inventories compared to 2013 levels reflect high sales volume late in 2013. net trade accounts receivable aggregated approximately $ 4,414,000 at december 31 , 2013 an increase of approximately $ 1,483,000 or 50.6 % over net trade accounts receivable of $ 2,931,000 at december 31 , 2012. the increase in accounts receivable is due to increased sales in december 2013 as compared to december 2012. cash used in investing activities for the year ended december 31 , 2013 was approximately $ 673,000 compared to $ 771,000 in 2012. during 2013 , purchases of property , plant , and equipment decreased by approximately $ 258,000. in 2013 , we also acquired for $ 160,000 royalty rights relating to sales of products encompassing odorstar 's patented technology .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources : our cash balance was approximately $ 3,072,000 at december 31 , 2013 compared to approximately $ 1,508,000 at december 31 , 2012. at december 31 , 2013 and december 31 , 2012 , we had no borrowings under our revolving line of credit . cash provided by operating activities for the year ended december 31 , 2013 was approximately $ 2,565,000 compared to about $ 2,775,000 for the year ended december 31 , 2012. the decrease in cash provided by operations principally results from the approximately $ 499,000 decrease in net income as compared to 2012 , offset in large part by increases in non-cash items of approximately $ 178,000 and net favorable changes in working capital of approximately $ 112,000. inventories were approximately $ 7,368,000 and $ 9,257,000 at december 31 , 2013 and 2012 , respectively , representing a decrease of approximately $ 1,889,000 or 20.4 % in 2013. the lower levels of 2013 inventories compared to 2013 levels reflect high sales volume late in 2013. net trade accounts receivable aggregated approximately $ 4,414,000 at december 31 , 2013 an increase of approximately $ 1,483,000 or 50.6 % over net trade accounts receivable of $ 2,931,000 at december 31 , 2012. the increase in accounts receivable is due to increased sales in december 2013 as compared to december 2012. cash used in investing activities for the year ended december 31 , 2013 was approximately $ 673,000 compared to $ 771,000 in 2012. during 2013 , purchases of property , plant , and equipment decreased by approximately $ 258,000. in 2013 , we also acquired for $ 160,000 royalty rights relating to sales of products encompassing odorstar 's patented technology . ``` Suspicious Activity Report : the adequacy of this allowance is reviewed each reporting period and adjusted as necessary . our allowance for doubtful accounts was approximately $ 93,000 and $ 73,000 at december 31 , 2013 and 2012 , respectively , which was approximately 2.1 % and 2.4 % , respectively , of gross accounts receivable . if the financial condition of our customers were to deteriorate , resulting in an impairment of their ability to make payments , or if unexpected events or significant future changes in trends were to occur , additional allowances may be required , resulting in increased bad debt expense . inventories inventories primarily are composed of raw materials and finished goods and are stated at the lower of cost or market , using the first-in , first-out method . we maintain a reserve for slow moving and obsolete inventory to reduce the carrying value of our inventories to reflect the diminution of value resulting from product obsolescence , damage or other issues affecting marketability by an amount equal to the difference between the cost of the inventory and its estimated market value . the adequacy of this reserve is reviewed each reporting period and adjusted as necessary . we regularly compare inventory quantities on hand against historical usage or forecasts related to specific items in order to evaluate obsolescence and excessive quantities . in assessing historical usage , we also qualitatively assess business trends to evaluate the reasonableness of using historical information as an estimate of future usage . a complete physical count of the inventory is conducted annually . our slow moving and obsolete inventory reserve was $ 302,296 and $ 271,994 at december 31 , 2013 and december 31 , 2012 , respectively . income taxes income taxes are accounted for under the asset and liability method . under this method , deferred tax assets and liabilities are recognized to reflect the future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases . deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the differences are expected to be recovered or settled . the temporary differences are attributable to differing methods of financial statement and income tax depreciation and reserves for trade accounts receivable and inventories . the likelihood of a material change in the company 's expected realization of deferred tax assets is dependent on , among other factors , future taxable income and settlements with tax authorities . while management believes that its judgments and interpretations regarding income taxes are appropriate , significant differences in actual experience may require future adjustments to our tax assets and liabilities , which could be material . we are also required to assess the realizability of our deferred tax assets . we evaluate positive and negative evidence and use judgments regarding past and future events , including operating results and available tax planning strategies that could be implemented to realize the deferred tax assets . based on this assessment , we determine when it is more likely than not that all or some portion of our deferred tax assets may not be realized , in which case we would be required to apply a valuation allowance to offset our deferred tax assets in an amount equal to future tax benefits that may not be realized . we currently do not apply a valuation allowance to our deferred tax assets . however , if facts and circumstances change in the future , a valuation allowance may be required . significant judgment is required in determining income tax provisions and in evaluating tax positions . we establish additional provisions for income taxes when , despite the belief that tax positions are fully supportable , there remain certain positions that do not meet the minimum probability threshold , which is a tax position that is more likely than not to be sustained upon examination by the applicable taxing authority . in the normal course of business , we and our subsidiaries are examined by various federal and state tax authorities . we regularly assess the potential outcomes of these examinations and any future examinations for the current or prior years in determining the adequacy of our provision for income taxes . we adjust the income tax provision , the current tax liability and deferred taxes in any period in which facts that give rise to an adjustment become known . the ultimate outcomes of the examinations of our income tax returns could result in increases or decreases to our recorded tax liabilities , which could affect our financial results . 7 trademarks , trade names , royalty rights , and patents - we acquired the rights to the star brite ® trademark and related products for the united states and canada in conjunction with our initial public offering during march 1981 for $ 880,000. through december 31 , 2001 , the cost of these intangible assets was amortized on a straight-line basis over an estimated useful life of 40 years . effective january 1 , 2002 and pursuant to statement of financial accounting standards no . 142 , `` goodwill and other intangible assets `` ( now codified in financial accounting standards board accounting standards codification topic 350 , `` intangibles - goodwill and other `` ) , we determined that these intangible assets have indefinite lives and therefore , we no longer recognize amortization expense . in addition , our 50 % owned joint venture , odorstar technology , llc , owns patents we use in our business . the company amortizes these patents over their remaining life on a straight line basis . story_separator_special_tag on august 6 , 2013 , the company purchased for $ 160,000 royalty rights ( previously owned by an unaffiliated company that owned the patents ultimately acquired by odorstar ) relating to sales of products encompassing odorstar 's patented technology . the company is amortizing the royalty rights over their remaining life on a straight line basis . we review the carrying values of the trademarks and patents periodically for possible impairment . our impairment review is based on a discounted cash flow approach that requires significant judgment with respect to unit volume , revenue and expense growth rates , and the selection of an appropriate discount rate . management uses estimates based on expected trends in making these assumptions . all impairment charges would be recorded for the difference between the carrying value and the net present value of estimated future cash flows , which represents the estimated fair value of the asset . management uses its judgment in assessing whether assets may have become impaired between annual valuations . indicators such as unexpected adverse economic factors , unanticipated technological change , distribution losses , competitive activities and acts by governments and courts may indicate that an asset has become impaired . results of operations : net sales were approximately $ 32,703,000 in 2013 compared to $ 31,039,000 in 2012 , an increase of $ 1,664,000 or 5.4 % . the increase in sales principally results from the resumption by our largest customer of normal buying practices following completion of its inventory reduction program related to products in our sector , which was in effect during 2012 , and increased sales to affiliated companies ( see note 9 to the consolidated financial statements included in this report ) , in addition to increased sales of marine products including star tron ® , private label products , and winterizing products . cost of goods sold and gross profit – cost of goods sold during 2013 increased approximately $ 1,403,000 or 6.9 % , to approximately $ 21,815,000 from approximately $ 20,412,000 in 2012. the increase in cost of goods sold reflects the increase in net sales and an increase in raw material costs and manufacturing overhead expenses . gross profit increased by approximately $ 262,000 or 2.5 % to approximately $ 10,889,000 in 2013 , from approximately $ 10,627,000 during 2012 , as the result of the factors described above . our gross profit percentage ( gross profit as a percentage of net sales ) decreased approximately 0.9 % , from 34.2 % in 2012 to 33.3 % in 2013. this decrease is the result of higher raw material costs , and increased manufacturing overhead expenses . advertising and promotion expense was approximately $ 2,648,000 in 2013 , an increase of approximately $ 230,000 or 9.5 % from approximately $ 2,418,000 in 2012. as a percentage of net sales , advertising and promotion expense increased from 7.8 % in 2012 to 8.1 % in 2013. the increase is primarily a result of increased promotional and marketing expenses , including our increased presence at industry trade shows . the company anticipates in 2014 that advertising and promotion expense will approximate the 2013 amount . selling and administrative expenses increased by approximately $ 803,000 or 15.7 % , from approximately $ 5,126,000 in 2012 to approximately $ 5,929,000 in 2013. the increase is principally due to an increase in stock -based compensation , legal expenses with regard to patent litigation involving odorstar ( see item 3 in this report ) , and increased selling expenses associated with our higher sales . as a percentage of net sales , selling and administrative expenses increased from 16.5 % in 2012 to 18.1 % in 2013. operating income – as a result of the foregoing , operating income decreased to approximately $ 2,312,000 in 2013 , compared to approximately $ 3,083,000 in 2012 , a decrease of $ 771,000 or 25.0 % . interest expense decreased approximately $ 31,000 to $ 67,000 in 2013 , compared to $ 98,000 in 2012. the decrease reflects lower average borrowings under our revolving line of credit , and continued reduction of our long-term debt during 2013. income taxes – we had a tax expense of approximately $ 816,000 in 2013 or 36.2 % of pretax income , compared to approximately $ 1,055,000 in 2012 or 35.3 % of pretax income . the increased rate is almost entirely due to the effect of the increased stock-based compensation . for additional information , see note 8 to the consolidated financial statements included in this report . net income and net income attributable to ocean bio-chem , inc. as a result of the items described above , net income decreased approximately 25.8 % or approximately $ 499,000 to $ 1,435,000 in 2013 from $ 1,934,000 in 2012. net income attributable to ocean bio-chem , inc. ( excluding the loss attributable to non-controlling interests ) was approximately $ 1,461,000 in 2013 , a decrease of approximately $ 501,000 or 25.5 % from approximately $ 1,962,000 in 2012 . 8 story_separator_special_tag margin-left : 0pt ; margin-right : 0pt `` > our sales in the canadian market are subject to currency fluctuations relating to the canadian dollar . we do not engage in currency hedging and address currency risk as a pricing issue . in the year ended december 31 , 2013 , we recorded approximately $ 5,000 in foreign currency translation adjustments ( decreasing shareholders equity by $ 5,000 ) . during the past few years , we have introduced a number of new products . at times , new product introductions have required us to increase our overall inventory and have resulted in lower inventory turnover rates . the effects of reduced inventory turnover have not been material to our overall operations . we believe that all required capital to maintain such increases will continue to be provided by operations and , if necessary , our current revolving line of credit or

story_separator_special_tag margin : 0pt 0 `` > the company has no off-balance sheet arrangements and does not anticipate entering into any such arrangements in the foreseeable future . impact of inflation the company does not expect inflation to be a significant factor in operation of the business . off-balance sheet arrangements there are no off-balance sheet arrangements between the company and any other entity that have , or are reasonably likely to have , a current or future effect on financial conditions , changes in financial conditions , revenues or expenses , results of operations , liquidity , capital expenditures or capital resources that is material to stockholders . critical accounting policies the methods , estimates and judgments we use in applying our accounting policies have a significant impact on the results we report in our financial statements , which we discuss under the heading “ results of operations ” following this section of our md & a . some of our accounting policies require us to make difficult and subjective judgments , often as a result of the need to make estimates of matters that are inherently uncertain . we set forth below those material accounting policies that we believe are the most critical to an investor 's understanding of our financial results and condition and that require complex management judgment . use of estimates the preparation of consolidated financial statements in conformity with accounting principles generally accepted in the united states ( “ ‘ us gaap ” ) requires management to make estimates and assumptions that affect the reported amounts of assets , liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods . actual results could differ from those estimates . as applicable to the consolidated financial statements , the most significant estimates and assumptions relate to allowances for impairment of goodwill , impairment of intangible assets , fair value of stock-based compensation and fair value calculations related to embedded derivative features of outstanding convertible notes payable and going concern . 13 goodwill and intangible assets goodwill represents the excess cost over the fair value of the assets of an acquired business . goodwill and intangible assets acquired in a business combination accounted for as a purchase and determined to have an indefinite useful life are not amortized but are tested for impairment at least annually . intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values and reviewed periodically for impairment . the company evaluates the possible impairment of goodwill annually as part of its reporting process for the fourth quarter of each fiscal year . the company determines the fair value of each subsidiary the goodwill relates to and compares the fair value to the carrying amount of the subsidiary . to the extent the carrying amount of the subsidiary exceeds the fair value of it , an impairment loss is recorded . impairment of long-lived assets in accordance with asc topic 360 , formerly sfas no . 144 , accounting for the impairment or disposal of long-lived assets , the company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be fully recoverable . the assessment of possible impairment is based on the company 's ability to recover the carrying value of its asset based on estimates of its undiscounted future cash flows . if these estimated future cash flows are less than the carrying value of the asset , an impairment charge is recognized for the difference between the asset 's estimated fair value and its carrying value . derivative liabilities and fair value of financial instruments fair value accounting requires bifurcation of embedded derivative instruments such as conversion features in convertible debt or equity instruments and measurement of their fair value for accounting purposes . in assessing the convertible debt instruments , management determines if the convertible debt host instrument is conventional convertible debt and further if there is a beneficial conversion feature requiring measurement . if the instrument is not considered conventional convertible debt under asc 470 , the company will continue its evaluation process of these instruments as derivative financial instruments under asc 815. once determined , derivative liabilities are adjusted to reflect fair value at each reporting period end , with any increase or decrease in the fair value being recorded in results of operations as an adjustment to fair value of derivatives . fair value of certain of the company 's financial instruments including cash , accounts receivable , account payable , accrued expenses , notes payables , and other accrued liabilities approximate cost because of their short maturities . the company measures and reports fair value in accordance with asc 820 , “ fair value measurements and disclosure ” defines fair value , establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value investments . fair value , as defined in asc 820 , is 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 . the fair value of an asset should reflect its highest and best use by market participants , principal ( or most advantageous ) markets , and an in-use or an in-exchange valuation premise . the fair value of a liability should reflect the risk of nonperformance , which includes , among other things , the company 's credit risk . valuation techniques are generally classified into three categories : the market approach ; the income approach ; and the cost approach . story_separator_special_tag the amendments in this update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the tax cuts and jobs act of 2017. the amendments in this update affect any entity that is required to apply the provisions of topic 220 , income statement—reporting comprehensive income , and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by gaap . the amendments in this update are effective for all organizations for fiscal years beginning after december 15 , 2018 , and interim periods within those fiscal years . early adoption is permitted . organizations should apply the proposed amendments either in the period of adoption or retrospectively to each period ( or periods ) in which the effect of the change in the u.s. federal corporate income tax rate in the tax cuts and jobs act is recognized . on march 9 , 2018 the fasb issued asu 2018-04 , investments—debt securities ( topic 320 ) and regulated operations ( topic 980 ) : amendments to sec paragraphs pursuant to sec staff accounting bulletin no . 117 and sec release no . 33-9273 ( sec update ) . the amendments in this update supersedes various sec paragraphs and adds an sec paragraph pursuant to the issuance of staff accounting bulletin no . 117. this amendment is effective upon issuance . on march 14 , 2018 the fasb issued income taxes ( topic 740 ) : amendments to sec paragraphs pursuant to sec staff accounting bulletin no . 118. this amendment is effective upon issuance . in june 2018 , the fasb issued compensation—stock compensation ( topic 718 ) : improvements to nonemployee share-based payment accounting . the amendments in this update expand the scope of topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees . the amendments in this update are effective for public business entities for fiscal years beginning after december 15 , 2018 , including interim periods within that fiscal year . early adoption is permitted , but no earlier than an entity 's adoption date of topic 606. in july 2018 , the fasb issued asu 2018-11 , leases ( topic 842 ) : targeted improvements . the amendments in this update related to separating components of a contract affect the amendments in update 2016-02 , which are not yet effective but can be early adopted . for entities that have not adopted topic 842 before the issuance of this update , the effective date and transition requirements for the amendments in this update related to separating components of a contract are the same as the effective date and transition requirements in update 2016-02. for entities that have adopted topic 842 before the issuance of this update , the transition and effective date of the amendments related to separating components of a contract in this update are as follows : 1. the practical expedient may be elected either in the first reporting period following the issuance of this update or at the original effective date of topic 842 for that entity . 2. the practical expedient may be applied either retrospectively or prospectively . all entities , including early adopters , that elect the practical expedient related to separating components of a contract in this update must apply the expedient , by class of underlying asset , to all existing lease transactions that qualify for the expedient at the date elected . 16 in august 2018 , the fasb issued asu 2018-13 , fair value measurement ( topic 820 ) —disclosure framework—changes to the disclosure requirements for fair value measurement . the amendments in this update improve the effectiveness of fair value measurement disclosures and modify the disclosure requirements on fair value measurements in topic 820 , fair value measurement , based on the concepts in fasb concepts statement , conceptual framework for financial reporting—chapter 8 : notes to financial statements , including the consideration of costs and benefits . the amendments in this asu are effective for all entities for fiscal years , and interim periods within those fiscal years , beginning after december 15 , 2019. the amendments on changes in unrealized gains and losses , the range and weighted average of significant unobservable inputs used to develop level 3 fair value measurements , and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption . all other amendments should be applied retrospectively to all periods presented upon their effective date . early adoption is permitted . in august 2018 , the fasb issued asu 2018-15 , intangibles—goodwill and other—internal-use software ( subtopic 350-40 ) : customer 's accounting for implementation costs incurred in a cloud computing arrangement that is a service contract . the amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software ( and hosting arrangements that include an internal-use software license ) . accordingly , the amendments require an entity ( customer ) in a hosting arrangement that is a service contract to follow the guidance in subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense . for public business entities , the amendments in this asu are effective for fiscal years beginning after december 15 , 2019 , and interim periods within those fiscal years . for all other entities , the amendments are effective for annual reporting periods beginning after december 15 , 2020 , and interim periods within annual periods beginning after december 15 , 2021. the company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements . in august 2018 ,

liquidity and capital resources liquidity is the ability of a company to generate funds to support its current and future operations , satisfy its obligations , and otherwise operate on an ongoing basis . significant factors in the management of liquidity are funds generated by operations , levels of accounts receivable and accounts payable and capital expenditures . as of december 31 , 2018 , the company had $ 154,000 of cash , total current assets of $ 4,033,000 and total current liabilities of $ 11,581,000 creating a working capital deficit of $ 7,548 thousand . current assets as of december 31 , 2018 consisted of $ 154,000 of cash , marketable securities in the amount of $ 79,000 , accounts receivable net of allowance of $ 3,673,000 and other current assets of $ 127,000 . 11 as of december 31 , 2017 , the company had $ 93,000 of cash , total current assets of $ 7,935,000 and total current liabilities of $ 14,649,000 creating a working capital deficit of $ 6,714,000. current assets as of december 31 , 2017 consisted of $ 93,000 of cash , accounts receivable net of allowance of $ 7,632,000 and other current assets of $ 210,000 the decrease in our working capital deficit was mainly attributable to the decrease of $ 3,959,000 in our trade account receivables and increase of $ 1,886,000 in our short-term related parties ' payables , which was mitigated by a decrease of $ 2,384,000 in our trade account payables . net cash used in operating activities was $ 517,000 for the year ended december 31 , 2018 , as compared to cash used in operating activities of $ 309,000 for the year ended december 31 , 2017. the company 's primary uses of cash have been for professional support , marketing expenses and working capital purposes .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 of a company to generate funds to support its current and future operations , satisfy its obligations , and otherwise operate on an ongoing basis . significant factors in the management of liquidity are funds generated by operations , levels of accounts receivable and accounts payable and capital expenditures . as of december 31 , 2018 , the company had $ 154,000 of cash , total current assets of $ 4,033,000 and total current liabilities of $ 11,581,000 creating a working capital deficit of $ 7,548 thousand . current assets as of december 31 , 2018 consisted of $ 154,000 of cash , marketable securities in the amount of $ 79,000 , accounts receivable net of allowance of $ 3,673,000 and other current assets of $ 127,000 . 11 as of december 31 , 2017 , the company had $ 93,000 of cash , total current assets of $ 7,935,000 and total current liabilities of $ 14,649,000 creating a working capital deficit of $ 6,714,000. current assets as of december 31 , 2017 consisted of $ 93,000 of cash , accounts receivable net of allowance of $ 7,632,000 and other current assets of $ 210,000 the decrease in our working capital deficit was mainly attributable to the decrease of $ 3,959,000 in our trade account receivables and increase of $ 1,886,000 in our short-term related parties ' payables , which was mitigated by a decrease of $ 2,384,000 in our trade account payables . net cash used in operating activities was $ 517,000 for the year ended december 31 , 2018 , as compared to cash used in operating activities of $ 309,000 for the year ended december 31 , 2017. the company 's primary uses of cash have been for professional support , marketing expenses and working capital purposes . ``` Suspicious Activity Report : story_separator_special_tag margin : 0pt 0 `` > the company has no off-balance sheet arrangements and does not anticipate entering into any such arrangements in the foreseeable future . impact of inflation the company does not expect inflation to be a significant factor in operation of the business . off-balance sheet arrangements there are no off-balance sheet arrangements between the company and any other entity that have , or are reasonably likely to have , a current or future effect on financial conditions , changes in financial conditions , revenues or expenses , results of operations , liquidity , capital expenditures or capital resources that is material to stockholders . critical accounting policies the methods , estimates and judgments we use in applying our accounting policies have a significant impact on the results we report in our financial statements , which we discuss under the heading “ results of operations ” following this section of our md & a . some of our accounting policies require us to make difficult and subjective judgments , often as a result of the need to make estimates of matters that are inherently uncertain . we set forth below those material accounting policies that we believe are the most critical to an investor 's understanding of our financial results and condition and that require complex management judgment . use of estimates the preparation of consolidated financial statements in conformity with accounting principles generally accepted in the united states ( “ ‘ us gaap ” ) requires management to make estimates and assumptions that affect the reported amounts of assets , liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods . actual results could differ from those estimates . as applicable to the consolidated financial statements , the most significant estimates and assumptions relate to allowances for impairment of goodwill , impairment of intangible assets , fair value of stock-based compensation and fair value calculations related to embedded derivative features of outstanding convertible notes payable and going concern . 13 goodwill and intangible assets goodwill represents the excess cost over the fair value of the assets of an acquired business . goodwill and intangible assets acquired in a business combination accounted for as a purchase and determined to have an indefinite useful life are not amortized but are tested for impairment at least annually . intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values and reviewed periodically for impairment . the company evaluates the possible impairment of goodwill annually as part of its reporting process for the fourth quarter of each fiscal year . the company determines the fair value of each subsidiary the goodwill relates to and compares the fair value to the carrying amount of the subsidiary . to the extent the carrying amount of the subsidiary exceeds the fair value of it , an impairment loss is recorded . impairment of long-lived assets in accordance with asc topic 360 , formerly sfas no . 144 , accounting for the impairment or disposal of long-lived assets , the company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be fully recoverable . the assessment of possible impairment is based on the company 's ability to recover the carrying value of its asset based on estimates of its undiscounted future cash flows . if these estimated future cash flows are less than the carrying value of the asset , an impairment charge is recognized for the difference between the asset 's estimated fair value and its carrying value . derivative liabilities and fair value of financial instruments fair value accounting requires bifurcation of embedded derivative instruments such as conversion features in convertible debt or equity instruments and measurement of their fair value for accounting purposes . in assessing the convertible debt instruments , management determines if the convertible debt host instrument is conventional convertible debt and further if there is a beneficial conversion feature requiring measurement . if the instrument is not considered conventional convertible debt under asc 470 , the company will continue its evaluation process of these instruments as derivative financial instruments under asc 815. once determined , derivative liabilities are adjusted to reflect fair value at each reporting period end , with any increase or decrease in the fair value being recorded in results of operations as an adjustment to fair value of derivatives . fair value of certain of the company 's financial instruments including cash , accounts receivable , account payable , accrued expenses , notes payables , and other accrued liabilities approximate cost because of their short maturities . the company measures and reports fair value in accordance with asc 820 , “ fair value measurements and disclosure ” defines fair value , establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value investments . fair value , as defined in asc 820 , is 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 . the fair value of an asset should reflect its highest and best use by market participants , principal ( or most advantageous ) markets , and an in-use or an in-exchange valuation premise . the fair value of a liability should reflect the risk of nonperformance , which includes , among other things , the company 's credit risk . valuation techniques are generally classified into three categories : the market approach ; the income approach ; and the cost approach . story_separator_special_tag the amendments in this update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the tax cuts and jobs act of 2017. the amendments in this update affect any entity that is required to apply the provisions of topic 220 , income statement—reporting comprehensive income , and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by gaap . the amendments in this update are effective for all organizations for fiscal years beginning after december 15 , 2018 , and interim periods within those fiscal years . early adoption is permitted . organizations should apply the proposed amendments either in the period of adoption or retrospectively to each period ( or periods ) in which the effect of the change in the u.s. federal corporate income tax rate in the tax cuts and jobs act is recognized . on march 9 , 2018 the fasb issued asu 2018-04 , investments—debt securities ( topic 320 ) and regulated operations ( topic 980 ) : amendments to sec paragraphs pursuant to sec staff accounting bulletin no . 117 and sec release no . 33-9273 ( sec update ) . the amendments in this update supersedes various sec paragraphs and adds an sec paragraph pursuant to the issuance of staff accounting bulletin no . 117. this amendment is effective upon issuance . on march 14 , 2018 the fasb issued income taxes ( topic 740 ) : amendments to sec paragraphs pursuant to sec staff accounting bulletin no . 118. this amendment is effective upon issuance . in june 2018 , the fasb issued compensation—stock compensation ( topic 718 ) : improvements to nonemployee share-based payment accounting . the amendments in this update expand the scope of topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees . the amendments in this update are effective for public business entities for fiscal years beginning after december 15 , 2018 , including interim periods within that fiscal year . early adoption is permitted , but no earlier than an entity 's adoption date of topic 606. in july 2018 , the fasb issued asu 2018-11 , leases ( topic 842 ) : targeted improvements . the amendments in this update related to separating components of a contract affect the amendments in update 2016-02 , which are not yet effective but can be early adopted . for entities that have not adopted topic 842 before the issuance of this update , the effective date and transition requirements for the amendments in this update related to separating components of a contract are the same as the effective date and transition requirements in update 2016-02. for entities that have adopted topic 842 before the issuance of this update , the transition and effective date of the amendments related to separating components of a contract in this update are as follows : 1. the practical expedient may be elected either in the first reporting period following the issuance of this update or at the original effective date of topic 842 for that entity . 2. the practical expedient may be applied either retrospectively or prospectively . all entities , including early adopters , that elect the practical expedient related to separating components of a contract in this update must apply the expedient , by class of underlying asset , to all existing lease transactions that qualify for the expedient at the date elected . 16 in august 2018 , the fasb issued asu 2018-13 , fair value measurement ( topic 820 ) —disclosure framework—changes to the disclosure requirements for fair value measurement . the amendments in this update improve the effectiveness of fair value measurement disclosures and modify the disclosure requirements on fair value measurements in topic 820 , fair value measurement , based on the concepts in fasb concepts statement , conceptual framework for financial reporting—chapter 8 : notes to financial statements , including the consideration of costs and benefits . the amendments in this asu are effective for all entities for fiscal years , and interim periods within those fiscal years , beginning after december 15 , 2019. the amendments on changes in unrealized gains and losses , the range and weighted average of significant unobservable inputs used to develop level 3 fair value measurements , and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption . all other amendments should be applied retrospectively to all periods presented upon their effective date . early adoption is permitted . in august 2018 , the fasb issued asu 2018-15 , intangibles—goodwill and other—internal-use software ( subtopic 350-40 ) : customer 's accounting for implementation costs incurred in a cloud computing arrangement that is a service contract . the amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software ( and hosting arrangements that include an internal-use software license ) . accordingly , the amendments require an entity ( customer ) in a hosting arrangement that is a service contract to follow the guidance in subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense . for public business entities , the amendments in this asu are effective for fiscal years beginning after december 15 , 2019 , and interim periods within those fiscal years . for all other entities , the amendments are effective for annual reporting periods beginning after december 15 , 2020 , and interim periods within annual periods beginning after december 15 , 2021. the company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements . in august 2018 ,

we operated solely in the united states until fiscal year 2000 , when we opened our first three international offices and began to expand geographically to meet the demand for project consulting services across the world . as of may 31 , 2014 , we served clients from offices in 19 countries , including 23 international offices and 45 offices in the united states . we expect to continue opportunistic domestic and multinational expansion while also investing in complementary professional services lines that we believe will augment our service offerings . we primarily charge our clients on an hourly basis for the professional services of our consultants . we recognize revenue once services have been rendered and invoice the majority of our clients in the united states on a weekly basis . some of our clients served by our international offices are billed on a monthly basis . our clients are contractually obligated to pay us for all hours billed . to a much lesser extent , we also earn revenue if a client hires one of our consultants . this type of contractually non-refundable revenue is recognized at the time our client completes the hiring process and represented 0.5 % of our revenue for each of the years ended may 31 , 2014 , may 25 , 2013 and may 26 , 2012. we periodically review our outstanding accounts receivable balance and determine an estimate of the amount of those receivables we believe may prove uncollectible . our provision for bad debts , if any , is included in our selling , general and administrative expenses . 30 the costs to pay our professional consultants and all related benefit and incentive costs , including provisions for paid time off and other employee benefits , are included in direct cost of services . we pay most of our consultants on an hourly basis for all hours worked on client engagements and , therefore , direct cost of services tends to vary directly with the volume of revenue we earn . we expense the benefits we pay to our consultants as they are earned . these benefits include paid time off and holidays ; a discretionary bonus plan ; subsidized group health , dental and life insurance programs ; a matching 401 ( k ) retirement plan ; the ability to participate in the company 's employee stock purchase plan ( “espp” ) ; and professional development and career training . in addition , we pay the related costs of employment , including state and federal payroll taxes , workers ' compensation insurance , unemployment insurance and other costs . typically , a consultant must work a threshold number of hours to be eligible for all of the benefits . we recognize direct cost of services when incurred . selling , general and administrative expenses include the payroll and related costs of our internal management as well as general and administrative , marketing and recruiting costs . our sales and marketing efforts are led by our management team who are salaried employees and earn bonuses based on operating results for the company as a whole and within each individual 's geographic market . the company 's fiscal year consists of 52 or 53 weeks , ending on the saturday in may closest to may 31. for fiscal years of 53 weeks , such as fiscal 2014 , the first three quarters consisted of 13 weeks each and the fourth quarter consisted of 14 weeks . fiscal 2013 and 2012 consisted of 52 weeks each . critical accounting policies the following discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements , which have been prepared in accordance with generally accepted accounting principles ( “gaap” ) in the united states . the preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . the following represents a summary of our critical accounting policies , defined as those policies that we believe : ( a ) are the most important to the portrayal of our financial condition and results of operations and ( b ) involve inherently uncertain issues that require management 's most difficult , subjective or complex judgments . valuation of long-lived assets — we assess the potential impairment of long-lived tangible and intangible assets periodically or whenever events or changes in circumstances indicate that the carrying value may not be recoverable . our goodwill and certain other intangible assets are not subject to periodic amortization . these assets are considered to have an indefinite life and their carrying values are required to be assessed by us for impairment at least annually . depending on future market values of our stock , our operating performance and other factors , these assessments could potentially result in impairment reductions of these intangible assets in the future and this adjustment may materially affect the company 's future financial results and financial condition . contingent consideration — the company estimates and records the acquisition date fair value of contingent consideration as part of purchase price consideration for acquisitions and each reporting period , the company estimates changes in the fair value of contingent consideration and any change in fair value is recognized in the company 's consolidated statement of operations . if the company has an estimated liability of the fair value of contingent consideration , the computation requires very subjective assumptions to be made of future operating results , discount rates and probabilities assigned to various potential operating result scenarios . future revisions to these assumptions could materially change the estimate of the fair value of contingent consideration and therefore materially affect the company 's future financial results and financial condition . story_separator_special_tag the leverage of s , g & a expenses was improved to 29.5 % in the fourth quarter of fiscal 2014 compared to 31.3 % in the third quarter . this was attributable to the improved revenue in the fourth quarter , as well as leverage on certain fixed expenses , such as rent , in the fourth quarter . a downturn or softening in global economic conditions and the impact of the summer holiday period could put resulting pressure on revenue in the first quarter of fiscal 2015 , and may limit our ability to leverage direct cost of services and s , g & a expenses . amortization and depreciation expense . amortization of intangible assets was flat at $ 1.7 million in both fiscal 2014 and fiscal 2013. no intangibles were fully amortized during fiscal 2014. based upon identified intangible assets recorded at may 31 , 2014 , the company anticipates amortization expense related to identified intangible assets to approximate $ 914,000 during the fiscal year ending may 30 , 2015 ; the amount may fluctuate depending upon foreign currency translation rates in effect during the year . during the 2015 fiscal year , several intangible assets will be fully amortized . depreciation expense decreased from $ 4.6 million for the year ended may 25 , 2013 to $ 3.6 million for the year ended may 31 , 2014. depreciation decreased as a number of assets were fully depreciated during fiscal 2013 and fiscal 2014. interest income . interest income declined to $ 168,000 in fiscal 2014 compared to $ 175,000 in fiscal 2013. the decrease in interest income is the result of lower cash balances available for investment in fiscal 2014. the company has invested available cash in certificates of deposit , money market investments and commercial paper that have been classified as cash equivalents due to the short maturities of these investments . as of may 31 , 2014 , the company had $ 34.0 million of investments in commercial paper and certificates of deposit with remaining maturity dates between three months and one year from the balance sheet date classified as short-term investments and considered “held-to-maturity” securities . income taxes . the provision for income taxes decreased from $ 19.4 million ( effective rate of 48.6 % ) for the year ended may 25 , 2013 to $ 18.3 million ( effective rate of 47.9 % ) for the year ended may 31 , 2014. the effective tax rate decreased primarily as a result of expiring statutes of limitations in the company 's fin 48 reserves . in addition , the provision for taxes in each of fiscal 2014 and fiscal 2013 resulted from taxes on income from operations in the united states and certain other foreign jurisdictions , a lower benefit for losses in certain foreign jurisdictions with tax rates lower than the united states statutory rates , and no benefit for losses in jurisdictions in which a valuation allowance on operating loss carryforwards had previously been established . the effective tax rate in both fiscal years disproportionally magnifies the effect of the components of the tax rate that differ from the standard federal rate , including non-deductible permanent differences and incentive stock options ( “isos” ) . based upon current economic circumstances , management will continue to monitor the need to record additional valuation allowances in the future , primarily related to certain foreign jurisdictions . realization of the currently reserved foreign deferred tax assets is dependent upon generating sufficient future taxable income in those foreign territories . periodically , the company reviews the components of both book and taxable income to analyze the adequacy of the tax provision . there can be no assurance that the company 's effective tax rate will remain constant in the future because of the lower benefit from the united states statutory rate for losses in certain foreign jurisdictions , the limitation on the benefit for losses in jurisdictions in which a valuation allowance for operating loss carryforwards has previously been established , and the unpredictability of timing and the amount of eligible disqualifying iso exercises . the company can not recognize a tax benefit for certain iso grants unless and until the holder exercises his or her option and then sells the shares within a certain period of time . in addition , the company can only recognize a potential tax benefit for employees ' acquisition and subsequent sale of shares purchased through the espp if the sale occurs within a certain defined period . as a result , the company 's provision for income taxes is likely to fluctuate from these factors for the foreseeable future . further , those tax benefits associated with iso grants fully vested at the date of adoption of the current accounting rules governing stock awards will be recognized as additions to paid-in capital when and if those options are exercised and not as a reduction to the company 's tax provision . the company recognized a benefit of approximately $ 2.1 million and $ 2.3 million related to stock-based compensation for nonqualified stock options expensed and for eligible disqualifying iso exercises during fiscal 2014 and 2013 , respectively . the proportion of expense related to non-qualified stock option grants ( for which the company may recognize a tax benefit in the same quarter as the related compensation expense in most instances ) is significant as compared to expense related to isos ( including espps ) . however , the timing and amount of eligible disqualifying iso exercises can not be predicted . the company predominantly grants nonqualified stock options to employees in the united states . 36 the company has maintained a position of being indefinitely reinvested in its foreign subsidiaries ' earnings by not expecting to remit foreign earnings in the foreseeable future . being indefinitely reinvested does not require a deferred tax liability to be recognized on the foreign earnings . management 's indefinite reinvestment position

liquidity and capital resources our primary source of liquidity is cash provided by our operations and , historically , to a lesser extent , stock option exercises . we have generated positive cash flows annually from operations since inception , and we continued to do so during the year ended may 31 , 2014. our ability to continue to increase positive cash flow from operations in the future will be , at least in part , dependent on improvement in global economic conditions . at may 31 , 2014 , the company had operating leases , primarily for office premises , and purchase obligations , primarily for property and equipment , expiring at various dates through august 2024. at may 31 , 2014 , the company had no capital leases . the following table summarizes our future minimum rental commitments under operating leases and our other known contractual obligations as of may 31 , 2014 : replace_table_token_13_th the company has a $ 3.0 million unsecured revolving credit facility with bank of america ( the “credit agreement” ) . the credit agreement allows the company to choose the interest rate applicable to advances . the interest rate options are bank of america 's prime rate and a london inter-bank offered rate plus 2.25 % . interest , if any , is payable monthly . the credit agreement expires november 30 , 2014. as of may 31 , 2014 , the company had approximately $ 1.5 million available under the terms of the credit agreement , as bank of america has issued approximately $ 1.5 million of outstanding letters of credit in favor of third parties related to operating leases . as of may 31 , 2014 , the company was in compliance with all covenants included in the credit agreement . operating activities provided $ 32.0 million in cash in fiscal 2014 compared to $ 35.0 million in fiscal 2013. cash provided by operations in fiscal 2014 resulted from net income of $ 19.9 million and net favorable non-cash reconciling adjustments of $ 14.0 million ( principally depreciation and amortization and stock-based compensation 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 our primary source of liquidity is cash provided by our operations and , historically , to a lesser extent , stock option exercises . we have generated positive cash flows annually from operations since inception , and we continued to do so during the year ended may 31 , 2014. our ability to continue to increase positive cash flow from operations in the future will be , at least in part , dependent on improvement in global economic conditions . at may 31 , 2014 , the company had operating leases , primarily for office premises , and purchase obligations , primarily for property and equipment , expiring at various dates through august 2024. at may 31 , 2014 , the company had no capital leases . the following table summarizes our future minimum rental commitments under operating leases and our other known contractual obligations as of may 31 , 2014 : replace_table_token_13_th the company has a $ 3.0 million unsecured revolving credit facility with bank of america ( the “credit agreement” ) . the credit agreement allows the company to choose the interest rate applicable to advances . the interest rate options are bank of america 's prime rate and a london inter-bank offered rate plus 2.25 % . interest , if any , is payable monthly . the credit agreement expires november 30 , 2014. as of may 31 , 2014 , the company had approximately $ 1.5 million available under the terms of the credit agreement , as bank of america has issued approximately $ 1.5 million of outstanding letters of credit in favor of third parties related to operating leases . as of may 31 , 2014 , the company was in compliance with all covenants included in the credit agreement . operating activities provided $ 32.0 million in cash in fiscal 2014 compared to $ 35.0 million in fiscal 2013. cash provided by operations in fiscal 2014 resulted from net income of $ 19.9 million and net favorable non-cash reconciling adjustments of $ 14.0 million ( principally depreciation and amortization and stock-based compensation expense ) . ``` Suspicious Activity Report : we operated solely in the united states until fiscal year 2000 , when we opened our first three international offices and began to expand geographically to meet the demand for project consulting services across the world . as of may 31 , 2014 , we served clients from offices in 19 countries , including 23 international offices and 45 offices in the united states . we expect to continue opportunistic domestic and multinational expansion while also investing in complementary professional services lines that we believe will augment our service offerings . we primarily charge our clients on an hourly basis for the professional services of our consultants . we recognize revenue once services have been rendered and invoice the majority of our clients in the united states on a weekly basis . some of our clients served by our international offices are billed on a monthly basis . our clients are contractually obligated to pay us for all hours billed . to a much lesser extent , we also earn revenue if a client hires one of our consultants . this type of contractually non-refundable revenue is recognized at the time our client completes the hiring process and represented 0.5 % of our revenue for each of the years ended may 31 , 2014 , may 25 , 2013 and may 26 , 2012. we periodically review our outstanding accounts receivable balance and determine an estimate of the amount of those receivables we believe may prove uncollectible . our provision for bad debts , if any , is included in our selling , general and administrative expenses . 30 the costs to pay our professional consultants and all related benefit and incentive costs , including provisions for paid time off and other employee benefits , are included in direct cost of services . we pay most of our consultants on an hourly basis for all hours worked on client engagements and , therefore , direct cost of services tends to vary directly with the volume of revenue we earn . we expense the benefits we pay to our consultants as they are earned . these benefits include paid time off and holidays ; a discretionary bonus plan ; subsidized group health , dental and life insurance programs ; a matching 401 ( k ) retirement plan ; the ability to participate in the company 's employee stock purchase plan ( “espp” ) ; and professional development and career training . in addition , we pay the related costs of employment , including state and federal payroll taxes , workers ' compensation insurance , unemployment insurance and other costs . typically , a consultant must work a threshold number of hours to be eligible for all of the benefits . we recognize direct cost of services when incurred . selling , general and administrative expenses include the payroll and related costs of our internal management as well as general and administrative , marketing and recruiting costs . our sales and marketing efforts are led by our management team who are salaried employees and earn bonuses based on operating results for the company as a whole and within each individual 's geographic market . the company 's fiscal year consists of 52 or 53 weeks , ending on the saturday in may closest to may 31. for fiscal years of 53 weeks , such as fiscal 2014 , the first three quarters consisted of 13 weeks each and the fourth quarter consisted of 14 weeks . fiscal 2013 and 2012 consisted of 52 weeks each . critical accounting policies the following discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements , which have been prepared in accordance with generally accepted accounting principles ( “gaap” ) in the united states . the preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . the following represents a summary of our critical accounting policies , defined as those policies that we believe : ( a ) are the most important to the portrayal of our financial condition and results of operations and ( b ) involve inherently uncertain issues that require management 's most difficult , subjective or complex judgments . valuation of long-lived assets — we assess the potential impairment of long-lived tangible and intangible assets periodically or whenever events or changes in circumstances indicate that the carrying value may not be recoverable . our goodwill and certain other intangible assets are not subject to periodic amortization . these assets are considered to have an indefinite life and their carrying values are required to be assessed by us for impairment at least annually . depending on future market values of our stock , our operating performance and other factors , these assessments could potentially result in impairment reductions of these intangible assets in the future and this adjustment may materially affect the company 's future financial results and financial condition . contingent consideration — the company estimates and records the acquisition date fair value of contingent consideration as part of purchase price consideration for acquisitions and each reporting period , the company estimates changes in the fair value of contingent consideration and any change in fair value is recognized in the company 's consolidated statement of operations . if the company has an estimated liability of the fair value of contingent consideration , the computation requires very subjective assumptions to be made of future operating results , discount rates and probabilities assigned to various potential operating result scenarios . future revisions to these assumptions could materially change the estimate of the fair value of contingent consideration and therefore materially affect the company 's future financial results and financial condition . story_separator_special_tag the leverage of s , g & a expenses was improved to 29.5 % in the fourth quarter of fiscal 2014 compared to 31.3 % in the third quarter . this was attributable to the improved revenue in the fourth quarter , as well as leverage on certain fixed expenses , such as rent , in the fourth quarter . a downturn or softening in global economic conditions and the impact of the summer holiday period could put resulting pressure on revenue in the first quarter of fiscal 2015 , and may limit our ability to leverage direct cost of services and s , g & a expenses . amortization and depreciation expense . amortization of intangible assets was flat at $ 1.7 million in both fiscal 2014 and fiscal 2013. no intangibles were fully amortized during fiscal 2014. based upon identified intangible assets recorded at may 31 , 2014 , the company anticipates amortization expense related to identified intangible assets to approximate $ 914,000 during the fiscal year ending may 30 , 2015 ; the amount may fluctuate depending upon foreign currency translation rates in effect during the year . during the 2015 fiscal year , several intangible assets will be fully amortized . depreciation expense decreased from $ 4.6 million for the year ended may 25 , 2013 to $ 3.6 million for the year ended may 31 , 2014. depreciation decreased as a number of assets were fully depreciated during fiscal 2013 and fiscal 2014. interest income . interest income declined to $ 168,000 in fiscal 2014 compared to $ 175,000 in fiscal 2013. the decrease in interest income is the result of lower cash balances available for investment in fiscal 2014. the company has invested available cash in certificates of deposit , money market investments and commercial paper that have been classified as cash equivalents due to the short maturities of these investments . as of may 31 , 2014 , the company had $ 34.0 million of investments in commercial paper and certificates of deposit with remaining maturity dates between three months and one year from the balance sheet date classified as short-term investments and considered “held-to-maturity” securities . income taxes . the provision for income taxes decreased from $ 19.4 million ( effective rate of 48.6 % ) for the year ended may 25 , 2013 to $ 18.3 million ( effective rate of 47.9 % ) for the year ended may 31 , 2014. the effective tax rate decreased primarily as a result of expiring statutes of limitations in the company 's fin 48 reserves . in addition , the provision for taxes in each of fiscal 2014 and fiscal 2013 resulted from taxes on income from operations in the united states and certain other foreign jurisdictions , a lower benefit for losses in certain foreign jurisdictions with tax rates lower than the united states statutory rates , and no benefit for losses in jurisdictions in which a valuation allowance on operating loss carryforwards had previously been established . the effective tax rate in both fiscal years disproportionally magnifies the effect of the components of the tax rate that differ from the standard federal rate , including non-deductible permanent differences and incentive stock options ( “isos” ) . based upon current economic circumstances , management will continue to monitor the need to record additional valuation allowances in the future , primarily related to certain foreign jurisdictions . realization of the currently reserved foreign deferred tax assets is dependent upon generating sufficient future taxable income in those foreign territories . periodically , the company reviews the components of both book and taxable income to analyze the adequacy of the tax provision . there can be no assurance that the company 's effective tax rate will remain constant in the future because of the lower benefit from the united states statutory rate for losses in certain foreign jurisdictions , the limitation on the benefit for losses in jurisdictions in which a valuation allowance for operating loss carryforwards has previously been established , and the unpredictability of timing and the amount of eligible disqualifying iso exercises . the company can not recognize a tax benefit for certain iso grants unless and until the holder exercises his or her option and then sells the shares within a certain period of time . in addition , the company can only recognize a potential tax benefit for employees ' acquisition and subsequent sale of shares purchased through the espp if the sale occurs within a certain defined period . as a result , the company 's provision for income taxes is likely to fluctuate from these factors for the foreseeable future . further , those tax benefits associated with iso grants fully vested at the date of adoption of the current accounting rules governing stock awards will be recognized as additions to paid-in capital when and if those options are exercised and not as a reduction to the company 's tax provision . the company recognized a benefit of approximately $ 2.1 million and $ 2.3 million related to stock-based compensation for nonqualified stock options expensed and for eligible disqualifying iso exercises during fiscal 2014 and 2013 , respectively . the proportion of expense related to non-qualified stock option grants ( for which the company may recognize a tax benefit in the same quarter as the related compensation expense in most instances ) is significant as compared to expense related to isos ( including espps ) . however , the timing and amount of eligible disqualifying iso exercises can not be predicted . the company predominantly grants nonqualified stock options to employees in the united states . 36 the company has maintained a position of being indefinitely reinvested in its foreign subsidiaries ' earnings by not expecting to remit foreign earnings in the foreseeable future . being indefinitely reinvested does not require a deferred tax liability to be recognized on the foreign earnings . management 's indefinite reinvestment position

15 summary of 2014 results consolidated net sales reached approximately $ 1,041 million during 2014 , increasing by approximately 3 % as compared to prior-year net sales of $ 1,014 million , driven by growth in both retail and foodservice markets . gross margin increased 2 % to approximately $ 248.6 million from the prior-year comparable total of $ 244.7 million . the benefits of the higher sales volumes and lower material costs were somewhat offset by increased trade promotion and lower foodservice pricing . net income , which reflected an after-tax loss on the sale of our candle manufacturing and marketing operations of $ 29.1 million , totaled approximately $ 75.0 million in 2014 , or $ 2.74 per diluted share , compared to net income of $ 109.2 million , or $ 3.99 per diluted share , in 2013 . net income in 2012 totaled approximately $ 95.8 million , or $ 3.51 per diluted share . looking forward for 2015 , we anticipate volume-driven growth from both retail and foodservice sales channels . we will also continue to review acquisition opportunities within the specialty foods segment that are consistent with our growth strategy and represent good value or otherwise provide significant strategic benefits . however , continued unsettled economic conditions affecting consumer and retailer buying patterns and market acceptance of our new product lines are among the many influences that may impact our ability to improve sales and operating margins in the coming year . based on current market conditions , we foresee modestly favorable material cost comparisons for the first half of 2015 . however , as witnessed in 2014 , the lower trends in material costs will be offset , in part , by some lower pricing in our foodservice business . future changes in the climate , economy and regulatory environment could influence these costs . to help offset or stabilize material costs , we have historically pursued various pricing actions and operational strategies that we believe will aid our future results . we continue to limit some of our exposure to volatile swings in food commodity costs through a structured purchasing program for certain key materials . changes in other recurring costs , such as marketing , transportation or operational expenses , may also impact our overall results . for a more-detailed discussion of the effect of commodity costs , see the “ impact of inflation ” section of this md & a below . we will continue to periodically reassess our allocation of capital to ensure that we maintain adequate operating flexibility while providing appropriate levels of cash returns to our shareholders , whether through share repurchases or cash dividends , including special dividends , if appropriate . review of consolidated operations net sales and gross margin replace_table_token_4_th 2014 to 2013 consolidated net sales for the year ended june 30 , 2014 increased by approximately 3 % to a new record of approximately $ 1,041 million from the prior-year record total of $ 1,014 million . in general , the overall increase was driven by higher sales volumes for both retail and foodservice . for our sales to the retail channel , which increased approximately 2 % , growth was achieved among several non-frozen product lines , including salad dressings and croutons . sales of products for national account customers drove most of the increase of approximately 3 % in foodservice sales , although this was offset in part by lower pricing to these customers . as measured by pounds shipped , total volume for the segment is estimated to have improved by approximately 4 % . in 2014 , deflationary trends affected net sales to the foodservice channel due to lower commodity costs . lower foodservice pricing represented less than 1 % of net sales in 2014 . similarly , the impact of pricing was slight on retail sales , although trade promotional intensity increased , in part to support a greater investment in new product introductions . as a percentage of net sales , sales of retail products declined slightly to approximately 51 % from 52 % in 2013 . 16 our gross margin as a percentage of net sales was approximately 23.9 % in 2014 compared with 24.1 % in 2013 . the 2014 gross margin percentage reflected the improved sales volumes and favorable ingredient costs ( especially for soybean oil , sweeteners and eggs ) , but these benefits were offset by increased trade promotion costs , which included increased costs related to new product introductions , and lower pricing in the foodservice channel , as well as increased distribution costs and plant inefficiencies . we estimate that lower material costs beneficially affected results by approximately 1 % of net sales . 2013 to 2012 during 2013 , net sales exceeded $ 1 billion for the first time , surpassing a record sales level set in 2012 . net sales for 2013 totaled approximately $ 1,014 million , an increase of 3 % from the 2012 total of $ 989 million . the increase primarily reflected higher retail and foodservice sales volumes . as measured by pounds shipped , volume is estimated to have improved by approximately 1 % and was derived primarily from sales to the foodservice channel . the retail net sales increase of approximately 3 % reflected the incremental benefit from some recently introduced food products , higher pricing and a reduced level of coupon redemption costs . foodservice net sales increased approximately 2 % on expanded volumes associated with certain existing customer programs . higher pricing contributed less than one-third of the segment 's net sales growth for 2013 . as a percentage of sales , sales of retail products remained relatively unchanged at approximately 52 % . our gross margin as a percentage of net sales was approximately 24.1 % in 2013 compared with 22.6 % in 2012 . story_separator_special_tag 21 accrued taxes our annual tax rate is determined based on our income , statutory tax rates and the permanent tax impacts of items treated differently for tax purposes than for financial reporting purposes . tax law requires certain items be included in the tax return at different times than the items are reflected in the financial statements . some of these differences are permanent , such as expenses that are not deductible in our tax return , and some differences are temporary , reversing over time , such as depreciation expense . these temporary differences create deferred tax assets and liabilities . the effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date . realization of certain deferred tax assets is dependent upon generating sufficient taxable income in the appropriate jurisdiction prior to the expiration of the carryforward periods . in accordance with accounting literature related to uncertainty in income taxes , tax benefits from uncertain tax positions that are recognized in the financial statements are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement . considerable management judgment is necessary to assess the inherent uncertainties related to the interpretations of complex tax laws , regulations , and taxing authority rulings , as well as to the expiration of statutes of limitations in the jurisdictions in which we operate . if our evaluation of these factors should change in any period , there is a risk our effective tax rate could increase or decrease , impacting our net earnings . accruals for self-insurance self-insurance accruals are made for certain claims associated with employee health care , workers ' compensation and general liability insurance . these accruals include estimates that may be based on historical loss development factors . differences in estimates and assumptions could result in an accrual requirement materially different from the calculated accrual . accounting for pension plans and other postretirement benefit plans to determine our ultimate obligation under our defined benefit pension plans and our other postretirement benefit plans , we must estimate the future cost of benefits and attribute that cost to the time period during which each covered employee works . to record the related net assets and obligation of such benefit plans , we use assumptions related to inflation , investment returns , mortality , employee turnover , medical costs and discount rates . to determine the discount rate , we , along with our third-party actuaries , considered several factors , including the current rates of various bond indices , such as the moody 's aa long-term bond index , yield curve analysis results from our actuaries based on expected cash flows of our plans , and the past history of discount rates used for the plan valuation . we , along with our third-party actuaries , review all of these assumptions on an ongoing basis to ensure that the most reasonable information available is being considered . changes in assumptions and future investment returns could potentially have a material impact on pension expense and related funding requirements . we recognize the overfunded or underfunded status of our defined benefit plans as an asset or liability in our consolidated balance sheet . any changes in that funded status caused by subsequent plan revaluations are recognized through comprehensive income . we may also experience future plan settlements or curtailments having unanticipated effects on operating results . recently issued accounting standards in may 2014 , the financial accounting standards board ( `` fasb `` ) issued accounting standards update ( “ asu ” ) no . 2014-09 , “ revenue from contracts with customers ” ( “ asu 14-09 ” ) which creates a comprehensive set of guidelines for the recognition of revenue under the principle : “ recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services . ” the requirements of asu 14-09 are effective for fiscal years , and interim periods within those years , beginning after december 15 , 2016 and will require either retrospective application to each prior period presented or retrospective application with the cumulative effect of initially applying the standard recognized at the date of adoption . we are currently evaluating the impact this asu will have on our financial position and results of operations . recently adopted accounting standards there were no recently adopted accounting pronouncements that impacted our consolidated financial statements . forward-looking statements we desire to take advantage of the “ safe harbor ” provisions of the private securities litigation reform act of 1995 ( the “ pslra ” ) . this annual report on form 10-k contains various “ forward-looking statements ” within the meaning of the pslra and other applicable securities laws . such statements can be identified by the use of the forward-looking words “ anticipate , ” “ estimate , ” “ project , ” “ believe , ” “ intend , ” “ plan , ” “ expect , ” “ hope ” or similar words . these statements discuss future expectations ; contain projections regarding future developments , operations or financial conditions ; or state other 22 forward-looking information . such statements are based upon assumptions and assessments made by us in light of our experience and perception of historical trends , current conditions , expected future developments and other factors we believe to be appropriate . these forward-looking statements involve various important risks , uncertainties and other factors that could cause our actual results to differ materially from those expressed in the forward-looking statements . actual results may differ as a result of factors over which we have no , or limited , control including , without limitation , the specific influences outlined below . management

cash flows replace_table_token_7_th our cash flows for the years 2012 through 2014 are presented in the consolidated statements of cash flows . cash flow generated from operations remains the primary source of financing for our internal growth . cash provided by operating activities in 2014 totaled approximately $ 129.1 million , a decrease of 2 % as compared with the prior-year total of $ 131.7 million , which increased 8 % from the 2012 total of $ 122.4 million . the 2014 operating cash flow was impacted by the sale of our candle manufacturing and marketing operations on january 30 , 2014. see note 2 to the consolidated financial statements for further information regarding this sale . cash provided by operating activities was also impacted by the relative changes in working capital , particularly accounts receivable and accrued liabilities and the change in net income . the 2013 increase in cash provided by operating activities from the 2012 level primarily resulted from higher net income . cash provided by investing activities totaled approximately $ 8.5 million in 2014 . cash used in investing activities totaled approximately $ 22.4 million in 2013 and $ 16.6 million in 2012 . the 2014 increase in cash provided by investing activities is due to the proceeds from the sale of our candle manufacturing and marketing operations , as well as a decrease in capital expenditures . the 2013 increase in cash used in investing activities from the 2012 level reflected higher capital expenditures in 2013 , including expenditures for expanded crouton manufacturing capacity . capital expenditures totaled approximately $ 16.0 million in 2014 , compared to $ 24.1 million in 2013 and $ 16.3 million in 2012 . based on our current plans and expectations , we believe that our total capital expenditures for 2015 could total approximately $ 20 million . financing activities used net cash totaling approximately $ 49.4 million , $ 177.6 million and $ 46.5 million in 2014 , 2013 and 2012 , respectively .

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Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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_7_th our cash flows for the years 2012 through 2014 are presented in the consolidated statements of cash flows . cash flow generated from operations remains the primary source of financing for our internal growth . cash provided by operating activities in 2014 totaled approximately $ 129.1 million , a decrease of 2 % as compared with the prior-year total of $ 131.7 million , which increased 8 % from the 2012 total of $ 122.4 million . the 2014 operating cash flow was impacted by the sale of our candle manufacturing and marketing operations on january 30 , 2014. see note 2 to the consolidated financial statements for further information regarding this sale . cash provided by operating activities was also impacted by the relative changes in working capital , particularly accounts receivable and accrued liabilities and the change in net income . the 2013 increase in cash provided by operating activities from the 2012 level primarily resulted from higher net income . cash provided by investing activities totaled approximately $ 8.5 million in 2014 . cash used in investing activities totaled approximately $ 22.4 million in 2013 and $ 16.6 million in 2012 . the 2014 increase in cash provided by investing activities is due to the proceeds from the sale of our candle manufacturing and marketing operations , as well as a decrease in capital expenditures . the 2013 increase in cash used in investing activities from the 2012 level reflected higher capital expenditures in 2013 , including expenditures for expanded crouton manufacturing capacity . capital expenditures totaled approximately $ 16.0 million in 2014 , compared to $ 24.1 million in 2013 and $ 16.3 million in 2012 . based on our current plans and expectations , we believe that our total capital expenditures for 2015 could total approximately $ 20 million . financing activities used net cash totaling approximately $ 49.4 million , $ 177.6 million and $ 46.5 million in 2014 , 2013 and 2012 , respectively . ``` Suspicious Activity Report : 15 summary of 2014 results consolidated net sales reached approximately $ 1,041 million during 2014 , increasing by approximately 3 % as compared to prior-year net sales of $ 1,014 million , driven by growth in both retail and foodservice markets . gross margin increased 2 % to approximately $ 248.6 million from the prior-year comparable total of $ 244.7 million . the benefits of the higher sales volumes and lower material costs were somewhat offset by increased trade promotion and lower foodservice pricing . net income , which reflected an after-tax loss on the sale of our candle manufacturing and marketing operations of $ 29.1 million , totaled approximately $ 75.0 million in 2014 , or $ 2.74 per diluted share , compared to net income of $ 109.2 million , or $ 3.99 per diluted share , in 2013 . net income in 2012 totaled approximately $ 95.8 million , or $ 3.51 per diluted share . looking forward for 2015 , we anticipate volume-driven growth from both retail and foodservice sales channels . we will also continue to review acquisition opportunities within the specialty foods segment that are consistent with our growth strategy and represent good value or otherwise provide significant strategic benefits . however , continued unsettled economic conditions affecting consumer and retailer buying patterns and market acceptance of our new product lines are among the many influences that may impact our ability to improve sales and operating margins in the coming year . based on current market conditions , we foresee modestly favorable material cost comparisons for the first half of 2015 . however , as witnessed in 2014 , the lower trends in material costs will be offset , in part , by some lower pricing in our foodservice business . future changes in the climate , economy and regulatory environment could influence these costs . to help offset or stabilize material costs , we have historically pursued various pricing actions and operational strategies that we believe will aid our future results . we continue to limit some of our exposure to volatile swings in food commodity costs through a structured purchasing program for certain key materials . changes in other recurring costs , such as marketing , transportation or operational expenses , may also impact our overall results . for a more-detailed discussion of the effect of commodity costs , see the “ impact of inflation ” section of this md & a below . we will continue to periodically reassess our allocation of capital to ensure that we maintain adequate operating flexibility while providing appropriate levels of cash returns to our shareholders , whether through share repurchases or cash dividends , including special dividends , if appropriate . review of consolidated operations net sales and gross margin replace_table_token_4_th 2014 to 2013 consolidated net sales for the year ended june 30 , 2014 increased by approximately 3 % to a new record of approximately $ 1,041 million from the prior-year record total of $ 1,014 million . in general , the overall increase was driven by higher sales volumes for both retail and foodservice . for our sales to the retail channel , which increased approximately 2 % , growth was achieved among several non-frozen product lines , including salad dressings and croutons . sales of products for national account customers drove most of the increase of approximately 3 % in foodservice sales , although this was offset in part by lower pricing to these customers . as measured by pounds shipped , total volume for the segment is estimated to have improved by approximately 4 % . in 2014 , deflationary trends affected net sales to the foodservice channel due to lower commodity costs . lower foodservice pricing represented less than 1 % of net sales in 2014 . similarly , the impact of pricing was slight on retail sales , although trade promotional intensity increased , in part to support a greater investment in new product introductions . as a percentage of net sales , sales of retail products declined slightly to approximately 51 % from 52 % in 2013 . 16 our gross margin as a percentage of net sales was approximately 23.9 % in 2014 compared with 24.1 % in 2013 . the 2014 gross margin percentage reflected the improved sales volumes and favorable ingredient costs ( especially for soybean oil , sweeteners and eggs ) , but these benefits were offset by increased trade promotion costs , which included increased costs related to new product introductions , and lower pricing in the foodservice channel , as well as increased distribution costs and plant inefficiencies . we estimate that lower material costs beneficially affected results by approximately 1 % of net sales . 2013 to 2012 during 2013 , net sales exceeded $ 1 billion for the first time , surpassing a record sales level set in 2012 . net sales for 2013 totaled approximately $ 1,014 million , an increase of 3 % from the 2012 total of $ 989 million . the increase primarily reflected higher retail and foodservice sales volumes . as measured by pounds shipped , volume is estimated to have improved by approximately 1 % and was derived primarily from sales to the foodservice channel . the retail net sales increase of approximately 3 % reflected the incremental benefit from some recently introduced food products , higher pricing and a reduced level of coupon redemption costs . foodservice net sales increased approximately 2 % on expanded volumes associated with certain existing customer programs . higher pricing contributed less than one-third of the segment 's net sales growth for 2013 . as a percentage of sales , sales of retail products remained relatively unchanged at approximately 52 % . our gross margin as a percentage of net sales was approximately 24.1 % in 2013 compared with 22.6 % in 2012 . story_separator_special_tag 21 accrued taxes our annual tax rate is determined based on our income , statutory tax rates and the permanent tax impacts of items treated differently for tax purposes than for financial reporting purposes . tax law requires certain items be included in the tax return at different times than the items are reflected in the financial statements . some of these differences are permanent , such as expenses that are not deductible in our tax return , and some differences are temporary , reversing over time , such as depreciation expense . these temporary differences create deferred tax assets and liabilities . the effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date . realization of certain deferred tax assets is dependent upon generating sufficient taxable income in the appropriate jurisdiction prior to the expiration of the carryforward periods . in accordance with accounting literature related to uncertainty in income taxes , tax benefits from uncertain tax positions that are recognized in the financial statements are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement . considerable management judgment is necessary to assess the inherent uncertainties related to the interpretations of complex tax laws , regulations , and taxing authority rulings , as well as to the expiration of statutes of limitations in the jurisdictions in which we operate . if our evaluation of these factors should change in any period , there is a risk our effective tax rate could increase or decrease , impacting our net earnings . accruals for self-insurance self-insurance accruals are made for certain claims associated with employee health care , workers ' compensation and general liability insurance . these accruals include estimates that may be based on historical loss development factors . differences in estimates and assumptions could result in an accrual requirement materially different from the calculated accrual . accounting for pension plans and other postretirement benefit plans to determine our ultimate obligation under our defined benefit pension plans and our other postretirement benefit plans , we must estimate the future cost of benefits and attribute that cost to the time period during which each covered employee works . to record the related net assets and obligation of such benefit plans , we use assumptions related to inflation , investment returns , mortality , employee turnover , medical costs and discount rates . to determine the discount rate , we , along with our third-party actuaries , considered several factors , including the current rates of various bond indices , such as the moody 's aa long-term bond index , yield curve analysis results from our actuaries based on expected cash flows of our plans , and the past history of discount rates used for the plan valuation . we , along with our third-party actuaries , review all of these assumptions on an ongoing basis to ensure that the most reasonable information available is being considered . changes in assumptions and future investment returns could potentially have a material impact on pension expense and related funding requirements . we recognize the overfunded or underfunded status of our defined benefit plans as an asset or liability in our consolidated balance sheet . any changes in that funded status caused by subsequent plan revaluations are recognized through comprehensive income . we may also experience future plan settlements or curtailments having unanticipated effects on operating results . recently issued accounting standards in may 2014 , the financial accounting standards board ( `` fasb `` ) issued accounting standards update ( “ asu ” ) no . 2014-09 , “ revenue from contracts with customers ” ( “ asu 14-09 ” ) which creates a comprehensive set of guidelines for the recognition of revenue under the principle : “ recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services . ” the requirements of asu 14-09 are effective for fiscal years , and interim periods within those years , beginning after december 15 , 2016 and will require either retrospective application to each prior period presented or retrospective application with the cumulative effect of initially applying the standard recognized at the date of adoption . we are currently evaluating the impact this asu will have on our financial position and results of operations . recently adopted accounting standards there were no recently adopted accounting pronouncements that impacted our consolidated financial statements . forward-looking statements we desire to take advantage of the “ safe harbor ” provisions of the private securities litigation reform act of 1995 ( the “ pslra ” ) . this annual report on form 10-k contains various “ forward-looking statements ” within the meaning of the pslra and other applicable securities laws . such statements can be identified by the use of the forward-looking words “ anticipate , ” “ estimate , ” “ project , ” “ believe , ” “ intend , ” “ plan , ” “ expect , ” “ hope ” or similar words . these statements discuss future expectations ; contain projections regarding future developments , operations or financial conditions ; or state other 22 forward-looking information . such statements are based upon assumptions and assessments made by us in light of our experience and perception of historical trends , current conditions , expected future developments and other factors we believe to be appropriate . these forward-looking statements involve various important risks , uncertainties and other factors that could cause our actual results to differ materially from those expressed in the forward-looking statements . actual results may differ as a result of factors over which we have no , or limited , control including , without limitation , the specific influences outlined below . management

we acquired 33 properties , which we will operate as 31 communities , on november 26 , 2014 , and the remaining 26 properties on january 6 , 2015. we continue to experience an active pipeline of acquisition opportunities and will seek to enhance the growth of the company through continued selective acquisitions . in december 2014 , we announced that we entered into an agreement to purchase six mh communities which is expected to close during the second quarter of 2015 , comprised of approximately 3,150 sites located in the orlando , florida area and with expansion potential of approximately 380 sites . the transaction is subject to the company 's satisfaction with its due diligence investigation and customary closing conditions , including consent of the existing lenders . we continually review the properties in our portfolio to ensure that they fit our business objectives . during 2014 , we sold 10 mh properties , and redeployed capital to properties in markets we believe have greater long-term potential . a gain of $ 17.7 million is recorded in `` gain on disposition of properties , net `` in our consolidated statements of operations . development activity : we have been focused on development and expansion opportunities adjacent to our existing communities , and we have developed nearly 1,400 sites over the past three years . we expanded 374 sites at three properties in 2014 . the total cost to construct the sites was approximately $ 11.0 million . we continue to expand our properties utilizing our inventory of owned and entitled land ( approximately 7,000 developed sites ) and expect to construct over 800 additional sites in 2015 . 38 sun communities , inc. capital activity : we closed two underwritten registered public offerings during 2014 totaling 11.7 million shares of common stock with net proceeds of approximately $ 562.9 million after deducting offering related expenses . proceeds from these capital raises help us to maintain our targeted leverage levels while continuing to expand our portfolio . markets the following table identifies the company 's largest markets by number of sites : replace_table_token_14_th a large geographic concentration of our properties continues to be in michigan , florida and texas . occupancy at our michigan communities has grown from 85 % in 2012 to 93 % in 2014 , occupancy at our texas communities has grown from 94 % in 2012 to 97 % in 2014 , while occupancy at our florida communities has remained consistent at 99 % . as a result of our recent acquisitions , we have increased the concentration of our properties located in other areas of the united states , predominantly in high growth areas and retirement and vacation destinations , such as arizona , california and the northeastern coastal areas . several of our acquisitions in these areas have been rv communities . through our expansion into rv communities , we have experienced strong revenue growth . the age demographic of rv communities is attractive , as the population of retirement age baby boomers in the u.s. is growing . rv communities have become a trending vacation opportunity not only for the retiree population , but as an affordable vacation alternative for families . 39 sun communities , inc. supplemental measures in addition to the results reported in accordance with generally accepted accounting principles in the united states ( “ gaap ” ) , we have provided information regarding noi in the following tables . noi is derived from revenues minus property operating and maintenance expenses and real estate taxes . we use noi as the primary basis to evaluate the performance of our operations . a reconciliation of noi to net income ( loss ) attributable to sun communities , inc. is included in “ results of operations ” below . we believe that noi is helpful to investors and analysts as a measure of operating performance because it is an indicator of the return on property investment , and provides a method of comparing property performance over time . we use noi as a key management tool when evaluating performance and growth of particular properties and or groups of properties . the principal limitation of noi is that it excludes depreciation , amortization , interest expense , and non-property specific expenses such as general and administrative expenses , all of which are significant costs , and therefore , noi is a measure of the operating performance of our properties rather than of the company overall . we believe that these costs included in net income ( loss ) often have no effect on the market value of our property and therefore limit its use as a performance measure . in addition , such expenses are often incurred at a parent company level and therefore are not necessarily linked to the performance of a real estate asset . noi should not be considered a substitute for the reported results prepared in accordance with gaap . noi should not be considered as an alternative to net income ( loss ) as an indicator of our financial performance , or to cash flows as a measure of liquidity ; nor is it indicative of funds available for our cash needs , including our ability to make cash distributions . noi , as determined and presented by us , may not be comparable to related or similarly titled measures reported by other companies . we also provide information regarding funds from operations ( “ ffo ” ) . we consider ffo an appropriate supplemental measure of the financial performance of an equity reit . story_separator_special_tag million primarily related to increases in our vacation rental income and golf course , restaurant and pro shop income , as a result of our acquisition of 14 rv communities during 2013. interest income increased primarily due to increases in interest income of $ 1.3 million from collateralized receivables and $ 0.7 million from installment note receivables . real property general and administrative costs increased primarily due to increased salaries , wages and bonus expense of $ 2.1 million as a result of our acquisitions and increased headcount year over year , increased health insurance and workers compensation costs of $ 0.5 million , increased deferred compensation of $ 1.7 million due to awards of restricted stock to our executives and key employees , increased other expenses of $ 0.9 million related to training and development , travel , consulting fees , software support and maintenance expenses , office expenses and rent , increased human resources expense of $ 0.3 million primarily related to pre-employment costs and an update to our payroll processing software and increased legal expense of $ 0.3 million . home sales and rentals general and administrative costs increased primarily due to increased salary expense of $ 0.5 million , increased health insurance costs of $ 0.2 million , increased commissions on home sales of $ 0.3 million , increased advertising expense of $ 0.3 million and increased utility expense of $ 0.2 million . depreciation and amortization costs increased as a result of additional depreciation and amortization of $ 9.5 million primarily related to our newly acquired properties ( see note 2 to our financial statements ) , $ 6.9 million related to depreciation on investment property for use in our rental program , $ 2.3 million related to the amortization of in place leases and promotions , and $ 1.7 million related to the write off of the remaining net book value for assets replaced during the year . interest expense on debt , including interest on mandatorily redeemable debt , increased primarily due to an increase of $ 1.8 million in our mortgage interest due to debt associated with the acquired properties ( see note 2 to our financial statements ) , an increase of $ 1.5 million in amortized financing costs , an increase of $ 1.3 million in interest expense on our secured borrowing arrangements , and an increase of $ 0.9 million in interest on our lines of credit , partially offset by a decrease in preferred op unit interest expense . distributions from affiliate decreased approximately $ 1.7 million . we suspended equity accounting in 2010 on our affiliate , origen , as our investment balance is zero . the income recorded in 2013 and 2012 is distribution income . the amount of the distribution is determined by origen on a quarterly basis . see note 7 to our financial statements . 52 sun communities , inc. funds from operations we provide information regarding ffo as a supplemental measure of operating performance . ffo is defined by nareit as net income ( loss ) ( computed in accordance gaap ) , excluding gains ( or losses ) from sales of depreciable operating property , plus real estate-related depreciation and amortization , and after adjustments for unconsolidated partnerships and joint ventures . due to the variety among owners of identical assets in similar condition ( based on historical cost accounting and useful life estimates ) , we believe excluding gains and losses related to sales of previously depreciated operating real estate assets , excluding impairment and excluding real estate asset depreciation and amortization provides a better indicator of our operating performance . ffo is a useful supplemental measure of our operating performance because it reflects the impact to operations from trends in occupancy rates , rental rates , and operating costs , providing perspective not readily apparent from net income ( loss ) . management believes that the use of ffo has been beneficial in improving the understanding of operating results of reits among the investing public and making comparisons of reit operating results more meaningful . management , the investment community , and banking institutions routinely use ffo , together with other measures , to measure operating performance in our industry . further , management uses ffo for planning and forecasting future periods . because ffo excludes significant economic components of net income ( loss ) including depreciation and amortization , ffo should be used as an adjunct to net income ( loss ) and not as an alternative to net income ( loss ) . the principal limitation of ffo is that it does not represent cash flow from operations as defined by gaap and is a supplemental measure of performance that does not replace net income ( loss ) as a measure of performance or net cash provided by operating activities as a measure of liquidity . in addition , ffo is not intended as a measure of a reit 's ability to meet debt principal repayments and other cash requirements , nor as a measure of working capital . ffo only provides investors with an additional performance measure . ffo is compiled in accordance with its interpretation of standards established by nareit , which may not be comparable to ffo reported by other reits that do not define the term in accordance with the current nareit definition or that interpret the current nareit definition differently . 53 sun communities , inc. the following table reconciles net income to ffo data for diluted purposes for the years ended december 31 , 2014 , 2013 and 2012 ( in thousands ) : replace_table_token_30_th 54 sun communities , inc. liquidity and capital resources our principal liquidity demands have historically been , and are expected to continue to be , distributions to our stockholders and the unitholders of the operating partnership , capital improvements to properties , the purchase of new and pre-owned homes , property acquisitions , development and expansion

cash and cash equivalents increased by $ 78.7 million from $ 4.8 million as of december 31 , 2013 , to $ 83.5 million as of december 31 , 2014 . net cash provided by operating activities increased by $ 18.6 million from $ 114.7 million for the year ended december 31 , 2013 to $ 133.3 million for the year ended december 31 , 2014 . our net cash flows provided by operating activities from continuing operations may be adversely impacted by , among other things : ( a ) the market and economic conditions in our current markets generally , and specifically in metropolitan areas of our current markets ; ( b ) lower occupancy and rental rates of our properties ; ( c ) increased operating costs , such as wage and benefit costs , insurance premiums , real estate taxes and utilities , that can not be passed on to our tenants ; ( d ) decreased sales of manufactured homes and ( e ) current volatility in economic conditions and the financial markets . see part i , item 1a , “ risk factors ” in this 10-k. investing activities net cash used in investing activities was $ 550.7 million for the year ended december 31 , 2014 , compared to $ 352.4 million for the year ended december 31 , 2013 .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash and cash equivalents increased by $ 78.7 million from $ 4.8 million as of december 31 , 2013 , to $ 83.5 million as of december 31 , 2014 . net cash provided by operating activities increased by $ 18.6 million from $ 114.7 million for the year ended december 31 , 2013 to $ 133.3 million for the year ended december 31 , 2014 . our net cash flows provided by operating activities from continuing operations may be adversely impacted by , among other things : ( a ) the market and economic conditions in our current markets generally , and specifically in metropolitan areas of our current markets ; ( b ) lower occupancy and rental rates of our properties ; ( c ) increased operating costs , such as wage and benefit costs , insurance premiums , real estate taxes and utilities , that can not be passed on to our tenants ; ( d ) decreased sales of manufactured homes and ( e ) current volatility in economic conditions and the financial markets . see part i , item 1a , “ risk factors ” in this 10-k. investing activities net cash used in investing activities was $ 550.7 million for the year ended december 31 , 2014 , compared to $ 352.4 million for the year ended december 31 , 2013 . ``` Suspicious Activity Report : we acquired 33 properties , which we will operate as 31 communities , on november 26 , 2014 , and the remaining 26 properties on january 6 , 2015. we continue to experience an active pipeline of acquisition opportunities and will seek to enhance the growth of the company through continued selective acquisitions . in december 2014 , we announced that we entered into an agreement to purchase six mh communities which is expected to close during the second quarter of 2015 , comprised of approximately 3,150 sites located in the orlando , florida area and with expansion potential of approximately 380 sites . the transaction is subject to the company 's satisfaction with its due diligence investigation and customary closing conditions , including consent of the existing lenders . we continually review the properties in our portfolio to ensure that they fit our business objectives . during 2014 , we sold 10 mh properties , and redeployed capital to properties in markets we believe have greater long-term potential . a gain of $ 17.7 million is recorded in `` gain on disposition of properties , net `` in our consolidated statements of operations . development activity : we have been focused on development and expansion opportunities adjacent to our existing communities , and we have developed nearly 1,400 sites over the past three years . we expanded 374 sites at three properties in 2014 . the total cost to construct the sites was approximately $ 11.0 million . we continue to expand our properties utilizing our inventory of owned and entitled land ( approximately 7,000 developed sites ) and expect to construct over 800 additional sites in 2015 . 38 sun communities , inc. capital activity : we closed two underwritten registered public offerings during 2014 totaling 11.7 million shares of common stock with net proceeds of approximately $ 562.9 million after deducting offering related expenses . proceeds from these capital raises help us to maintain our targeted leverage levels while continuing to expand our portfolio . markets the following table identifies the company 's largest markets by number of sites : replace_table_token_14_th a large geographic concentration of our properties continues to be in michigan , florida and texas . occupancy at our michigan communities has grown from 85 % in 2012 to 93 % in 2014 , occupancy at our texas communities has grown from 94 % in 2012 to 97 % in 2014 , while occupancy at our florida communities has remained consistent at 99 % . as a result of our recent acquisitions , we have increased the concentration of our properties located in other areas of the united states , predominantly in high growth areas and retirement and vacation destinations , such as arizona , california and the northeastern coastal areas . several of our acquisitions in these areas have been rv communities . through our expansion into rv communities , we have experienced strong revenue growth . the age demographic of rv communities is attractive , as the population of retirement age baby boomers in the u.s. is growing . rv communities have become a trending vacation opportunity not only for the retiree population , but as an affordable vacation alternative for families . 39 sun communities , inc. supplemental measures in addition to the results reported in accordance with generally accepted accounting principles in the united states ( “ gaap ” ) , we have provided information regarding noi in the following tables . noi is derived from revenues minus property operating and maintenance expenses and real estate taxes . we use noi as the primary basis to evaluate the performance of our operations . a reconciliation of noi to net income ( loss ) attributable to sun communities , inc. is included in “ results of operations ” below . we believe that noi is helpful to investors and analysts as a measure of operating performance because it is an indicator of the return on property investment , and provides a method of comparing property performance over time . we use noi as a key management tool when evaluating performance and growth of particular properties and or groups of properties . the principal limitation of noi is that it excludes depreciation , amortization , interest expense , and non-property specific expenses such as general and administrative expenses , all of which are significant costs , and therefore , noi is a measure of the operating performance of our properties rather than of the company overall . we believe that these costs included in net income ( loss ) often have no effect on the market value of our property and therefore limit its use as a performance measure . in addition , such expenses are often incurred at a parent company level and therefore are not necessarily linked to the performance of a real estate asset . noi should not be considered a substitute for the reported results prepared in accordance with gaap . noi should not be considered as an alternative to net income ( loss ) as an indicator of our financial performance , or to cash flows as a measure of liquidity ; nor is it indicative of funds available for our cash needs , including our ability to make cash distributions . noi , as determined and presented by us , may not be comparable to related or similarly titled measures reported by other companies . we also provide information regarding funds from operations ( “ ffo ” ) . we consider ffo an appropriate supplemental measure of the financial performance of an equity reit . story_separator_special_tag million primarily related to increases in our vacation rental income and golf course , restaurant and pro shop income , as a result of our acquisition of 14 rv communities during 2013. interest income increased primarily due to increases in interest income of $ 1.3 million from collateralized receivables and $ 0.7 million from installment note receivables . real property general and administrative costs increased primarily due to increased salaries , wages and bonus expense of $ 2.1 million as a result of our acquisitions and increased headcount year over year , increased health insurance and workers compensation costs of $ 0.5 million , increased deferred compensation of $ 1.7 million due to awards of restricted stock to our executives and key employees , increased other expenses of $ 0.9 million related to training and development , travel , consulting fees , software support and maintenance expenses , office expenses and rent , increased human resources expense of $ 0.3 million primarily related to pre-employment costs and an update to our payroll processing software and increased legal expense of $ 0.3 million . home sales and rentals general and administrative costs increased primarily due to increased salary expense of $ 0.5 million , increased health insurance costs of $ 0.2 million , increased commissions on home sales of $ 0.3 million , increased advertising expense of $ 0.3 million and increased utility expense of $ 0.2 million . depreciation and amortization costs increased as a result of additional depreciation and amortization of $ 9.5 million primarily related to our newly acquired properties ( see note 2 to our financial statements ) , $ 6.9 million related to depreciation on investment property for use in our rental program , $ 2.3 million related to the amortization of in place leases and promotions , and $ 1.7 million related to the write off of the remaining net book value for assets replaced during the year . interest expense on debt , including interest on mandatorily redeemable debt , increased primarily due to an increase of $ 1.8 million in our mortgage interest due to debt associated with the acquired properties ( see note 2 to our financial statements ) , an increase of $ 1.5 million in amortized financing costs , an increase of $ 1.3 million in interest expense on our secured borrowing arrangements , and an increase of $ 0.9 million in interest on our lines of credit , partially offset by a decrease in preferred op unit interest expense . distributions from affiliate decreased approximately $ 1.7 million . we suspended equity accounting in 2010 on our affiliate , origen , as our investment balance is zero . the income recorded in 2013 and 2012 is distribution income . the amount of the distribution is determined by origen on a quarterly basis . see note 7 to our financial statements . 52 sun communities , inc. funds from operations we provide information regarding ffo as a supplemental measure of operating performance . ffo is defined by nareit as net income ( loss ) ( computed in accordance gaap ) , excluding gains ( or losses ) from sales of depreciable operating property , plus real estate-related depreciation and amortization , and after adjustments for unconsolidated partnerships and joint ventures . due to the variety among owners of identical assets in similar condition ( based on historical cost accounting and useful life estimates ) , we believe excluding gains and losses related to sales of previously depreciated operating real estate assets , excluding impairment and excluding real estate asset depreciation and amortization provides a better indicator of our operating performance . ffo is a useful supplemental measure of our operating performance because it reflects the impact to operations from trends in occupancy rates , rental rates , and operating costs , providing perspective not readily apparent from net income ( loss ) . management believes that the use of ffo has been beneficial in improving the understanding of operating results of reits among the investing public and making comparisons of reit operating results more meaningful . management , the investment community , and banking institutions routinely use ffo , together with other measures , to measure operating performance in our industry . further , management uses ffo for planning and forecasting future periods . because ffo excludes significant economic components of net income ( loss ) including depreciation and amortization , ffo should be used as an adjunct to net income ( loss ) and not as an alternative to net income ( loss ) . the principal limitation of ffo is that it does not represent cash flow from operations as defined by gaap and is a supplemental measure of performance that does not replace net income ( loss ) as a measure of performance or net cash provided by operating activities as a measure of liquidity . in addition , ffo is not intended as a measure of a reit 's ability to meet debt principal repayments and other cash requirements , nor as a measure of working capital . ffo only provides investors with an additional performance measure . ffo is compiled in accordance with its interpretation of standards established by nareit , which may not be comparable to ffo reported by other reits that do not define the term in accordance with the current nareit definition or that interpret the current nareit definition differently . 53 sun communities , inc. the following table reconciles net income to ffo data for diluted purposes for the years ended december 31 , 2014 , 2013 and 2012 ( in thousands ) : replace_table_token_30_th 54 sun communities , inc. liquidity and capital resources our principal liquidity demands have historically been , and are expected to continue to be , distributions to our stockholders and the unitholders of the operating partnership , capital improvements to properties , the purchase of new and pre-owned homes , property acquisitions , development and expansion

the thermal acoustical solutions segment negatively impacted consolidated gross margin by approximately 220 basis points due to higher manufacturing and logistics costs to meet customer demand , combined with unfavorable pricing and product mix . the technical nonwovens segment reported improved segment gross margin primarily driven by lower segment restructuring expenses and cost savings associated with those restructuring activities , but negatively impacted consolidated gross margin by approximately 60 basis points due to consolidated segment mix . while the performance materials segment reported lower gross margin , the segment favorably impacted consolidated gross margin by approximately 150 basis points from improved segment mix , driven by higher margin sealing and advanced solutions products sales , primarily from the acquired interface business since august 31 , 2018. operating loss was $ ( 38.8 ) million in 2019 , compared to operating income of $ 49.2 million . the operating loss was driven by fourth quarter 2019 goodwill and other long-lived asset impairment charges in the performance materials segment of $ 64.2 million and incremental 2019 intangible assets amortization of $ 12.2 million in the performance materials segment , combined with incremental manufacturing and logistics costs in the thermal acoustical solutions segment . the following items are included in operating income ( loss ) for 2019 and 2018 and impact the comparability of each year : replace_table_token_4_th in the second quarter of 2019 , the company settled the pension obligation of the u.s. lydall pension plan , which was partially offset by a gain recognized from the withdrawal from a multi-employer pension plan in the fourth quarter of 2019 and resulted in net non-cash settlement expenses of $ 25.2 million , or $ 0.86 per diluted share , in 2019. net loss was $ ( 70.5 ) million , or $ ( 4.08 ) per diluted share in 2019 , compared to net income of $ 34.9 million , or 2.02 per diluted share in 2018 . liquidity cash was $ 51.3 million at december 31 , 2019 , compared to $ 49.2 million at december 31 , 2018. net cash provided by operations was $ 86.9 million in 2019 compared to $ 44.7 million in 2018 , with the improvement primarily driven by lower accounts receivable . cash generation of $ 86.9 million in 2019 enabled the company to pay down $ 52 million of outstanding borrowings from its amended credit agreement . as of december 31 , 2019 , there was $ 121.6 million of availability under the company 's amended credit agreement . the company 's cash from operations and capacity under its amended credit agreement provide for sufficient cash availability to support organic growth programs and fund capital investments . 19 outlook while the company has seen some recent stabilization in the end markets for interface sealing products , weaker demand in european industrial markets is impacting all of the company 's segments . in china , the company is closely monitoring the impact of the coronavirus on its businesses and expects that its first quarter results will be negatively impacted , but is uncertain with regards to the severity and duration of the impact . the company has started a strategic review , which it expects to conclude by the end of the second quarter of 2020 , to evaluate lydall 's portfolio and end markets . the objective is to prioritize strategic actions that optimize capital allocation and drive long-term shareholder value . as part of the process , the company is identifying specific near-term opportunities for improvement in commercial performance , cost structure and working capital . 20 consolidated results of operations net sales replace_table_token_5_th net sales for 2019 increased by $ 51.5 million , or 6.6 % , compared to 2018. this increase was related to incremental sealing and advanced solutions sales of $ 76.0 million , primarily from the acquisition of interface , which led to increased performance materials net sales of $ 76.3 million , or 9.7 % of consolidated net sales . net sales decreased in the technical nonwovens segment by $ 20.5 million , net of intercompany sales , driven primarily by a decline in demand in the industrial filtration market , primarily in china and europe . additionally , the divestiture of the geosol business in the second quarter of 2019 reduced net sales by $ 7.0 million in 2019 compared to 2018. net sales decreased by $ 3.9 million in the thermal acoustical solutions segment due to decreased tooling sales of $ 2.2 million , related to the timing of new platform launches , and lower parts sales of $ 1.6 million as reduced demand in north america was partially offset by increased demand in europe and asia . foreign currency translation had a negative impact on net sales of $ 16.3 million , or 2.1 % of consolidated net sales , impacting the technical nonwovens segment by $ 7.3 million , or 0.9 % of consolidated net sales , the thermal acoustical solutions segment by $ 6.4 million , or 0.8 % of consolidated net sales and the performance materials segment by $ 2.6 million , or 0.3 % of consolidated net sales . cost of sales replace_table_token_6_th cost of sales for 2019 increased by $ 52.4 million , or 8.3 % , compared to 2018. the increase was primarily related to increased net sales of sealing and advanced solutions products from the interface acquisition of $ 76.0 million , within the performance materials segment . additionally , labor inefficiencies and increased overhead costs drove increased cost of sales in 2019 compared to 2018 within the performance materials segment . also , the thermal acoustical solutions segment contributed increased cost of sales of $ 10.5 million on reduced sales levels in 2019 compared to 2018 , primarily due to operating inefficiencies in its north america and europe facilities . story_separator_special_tag in november 2018 , the company entered into a five year interest rate swap agreement with a bank which converts the interest on a notional $ 139.0 million of the company 's one-month libor-based borrowings under its amended credit agreement from a variable rate , plus the borrowing spread , to a fixed rate of 3.09 % plus the borrowing spread . the notional amount reduces quarterly by fluctuating amounts through august 2023. in april 2017 , the company entered into a three -year interest rate swap agreement with a bank which converts the interest on a notional $ 60.0 million of the company 's one-month libor-based borrowings under its amended credit agreement from a variable rate , plus the borrowing spread , to a fixed rate of 1.58 % plus the borrowing spread . the notional amount reduces quarterly by $ 5.0 million through march 31 , 2020. these interest rate swap agreements were accounted for as cash flow hedges . effectiveness of these derivative agreements are assessed quarterly by ensuring that the critical terms of the swaps continue to match the critical terms of the hedged debt . in november 2019 , the company entered into three fixed-to-fixed cross-currency swaps with banking institutions with aggregate notional amounts totaling 67.8 million ( $ 75 million u.s. dollar equivalent ) . these swaps hedge a portion of lydall , inc 's net investment in an euro functional currency denominated subsidiary against the variability of exchange 27 rate translation impacts between the u.s. dollar and euro . these contracts require monthly cash interest exchanges over the life of the contracts with the company recognizing a reduction to interest expense in the company 's consolidated statements of operations due to the favorable interest rate differential between the u.s. dollar and euro , which is expected to be approximately $ 1.3 million in 2020. also , settlement of the notional 22.6 million ( $ 25 million u.s. dollar equivalent ) cross-currency swaps occur at maturity dates of august 2021 , august 2022 and august 2023. in addition to the amounts outstanding under the facility , the company has various foreign credit facilities totaling approximately $ 7.0 million . at december 31 , 2019 , the company 's foreign subsidiaries had $ 2.1 million in standby letters of credit outstanding . future cash requirements the company manages worldwide cash requirements considering available funds among domestic and foreign subsidiaries . the company expects to fund its operating cash requirements from existing cash balances , cash generated by operations , and through borrowings , as needed , under its existing domestic and foreign credit facilities . if completed , such activities would be financed with existing cash balances , cash generated from operations , borrowings under the credit facilities described under “ financing arrangements ” above or other forms of financing , as required . at december 31 , 2019 , total indebtedness was $ 272.6 million , of which $ 126.5 million was a revolver loan and $ 146.1 million , net of $ 0.4 million of capitalized debt costs , was a term loan . these loans are governed by the amended credit agreement and totaled 46.1 % of the company 's total capital structure at december 31 , 2019. cash requirements for 2020 are expected to include the funding of ongoing operations , capital expenditures , restructuring programs , payments due on finance and operating leases , pension plan contributions , income tax payments , term loan payments and optional prepayments on the revolver loan . capital spending for 2020 is expected to be approximately $ 25 million to $ 30 million . the funded status of the company 's defined benefit pension plans are dependent upon many factors , including returns on invested assets , levels of market interest rates , mortality rates and levels of contributions to the plan . the company expects to contribute approximately $ 2.4 million to its domestic defined employee benefit plans in 2020. see note 12 to the consolidated financial statements included in this annual report on form 10-k for additional information regarding the company 's pension plans . contractual obligations the following table summarizes the company 's significant contractual obligations as of december 31 , 2019 and the effect of such contractual obligations are expected to have on the company 's liquidity and cash flows in future periods . for recent financing activity please refer to “ financing arrangements ” above . replace_table_token_17_th * includes estimated interest payments the company has finance lease agreements for machinery and equipment at multiple operations requiring monthly principal and interest payments through 2020 . operating leases are primarily related to buildings , office equipment , vehicles and machinery with payments through 2033. the company 's long-term debt payments in the table above represent the estimated annual required term loan fixed principal payments , revolver loan payments due in 2023 and annual interest payments . actual payments may vary 28 significantly depending on future debt levels , timing of debt repayments and sources of funding utilized . refer to note 8 to the consolidated financial statements included in this annual report on form 10-k for additional discussion on long-term debt . the company 's future employee benefit plan contributions relate to the minimum contributions for the 2020 plan year based on the company 's employee benefit plan valuations at december 31 , 2019. see note 12 to the consolidated financial statements for additional information regarding the company 's employee benefit plans . in addition to the above contractual obligations , the company utilizes letters of credit in the ordinary course of business . outstanding letters of credit were $ 4.0 million and $ 6.1 million at december 31 , 2019 and 2018 , respectively . the above table does not reflect net tax contingencies of $ 3.2 million , the timing of which is uncertain . refer to note 16 to the consolidated financial statements included in this annual report

liquidity and capital resources replace_table_token_16_th the company assesses its liquidity in terms of its ability to generate cash to fund operating , investing and financing activities . the principal source of liquidity is operating cash flows . in addition to operating cash flows , other significant factors that affect the overall management of liquidity include capital expenditures , investments in businesses , strategic transactions , income tax payments , debt service payments , outcomes of contingencies , foreign currency exchange rates and employee benefit plan funding . the company manages worldwide cash requirements by considering available funds among domestic and foreign subsidiaries.the company expects to finance its 2020 operating cash and capital spending requirements from existing cash balances , cash provided by operating activities and through borrowings under the amended credit agreement , as needed . at december 31 , 2019 , the company held $ 51.3 million in cash and cash equivalents , including $ 15.6 million in the u.s. with the remaining held by foreign subsidiaries . operating cash flows net cash provided by operating activities in 2019 was $ 86.9 million compared with $ 44.7 million in 2018. in 2019 , net loss and non-cash adjustments were $ 54.6 million compared to net income and non-cash adjustments of $ 72.9 million in 2018. since december 31 , 2018 , net operating assets and liabilities decreased by $ 32.3 million , compared to 2018 when net operating assets and liabilities increased $ 28.2 million from december 31 , 2017. the decrease of $ 32.3 million since december 31 , 2018 was primarily due to a reduction of $ 37.5 million in accounts receivable principally due to lower net sales in the fourth quarter of 2019 compared to the fourth quarter of 2018 , as well as the company selling approximately $ 15.0 million in trade accounts receivable balances to a banking institution that would have normally been collected in the first quarter of 2020. investing cash flows in 2019

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources replace_table_token_16_th the company assesses its liquidity in terms of its ability to generate cash to fund operating , investing and financing activities . the principal source of liquidity is operating cash flows . in addition to operating cash flows , other significant factors that affect the overall management of liquidity include capital expenditures , investments in businesses , strategic transactions , income tax payments , debt service payments , outcomes of contingencies , foreign currency exchange rates and employee benefit plan funding . the company manages worldwide cash requirements by considering available funds among domestic and foreign subsidiaries.the company expects to finance its 2020 operating cash and capital spending requirements from existing cash balances , cash provided by operating activities and through borrowings under the amended credit agreement , as needed . at december 31 , 2019 , the company held $ 51.3 million in cash and cash equivalents , including $ 15.6 million in the u.s. with the remaining held by foreign subsidiaries . operating cash flows net cash provided by operating activities in 2019 was $ 86.9 million compared with $ 44.7 million in 2018. in 2019 , net loss and non-cash adjustments were $ 54.6 million compared to net income and non-cash adjustments of $ 72.9 million in 2018. since december 31 , 2018 , net operating assets and liabilities decreased by $ 32.3 million , compared to 2018 when net operating assets and liabilities increased $ 28.2 million from december 31 , 2017. the decrease of $ 32.3 million since december 31 , 2018 was primarily due to a reduction of $ 37.5 million in accounts receivable principally due to lower net sales in the fourth quarter of 2019 compared to the fourth quarter of 2018 , as well as the company selling approximately $ 15.0 million in trade accounts receivable balances to a banking institution that would have normally been collected in the first quarter of 2020. investing cash flows in 2019 ``` Suspicious Activity Report : the thermal acoustical solutions segment negatively impacted consolidated gross margin by approximately 220 basis points due to higher manufacturing and logistics costs to meet customer demand , combined with unfavorable pricing and product mix . the technical nonwovens segment reported improved segment gross margin primarily driven by lower segment restructuring expenses and cost savings associated with those restructuring activities , but negatively impacted consolidated gross margin by approximately 60 basis points due to consolidated segment mix . while the performance materials segment reported lower gross margin , the segment favorably impacted consolidated gross margin by approximately 150 basis points from improved segment mix , driven by higher margin sealing and advanced solutions products sales , primarily from the acquired interface business since august 31 , 2018. operating loss was $ ( 38.8 ) million in 2019 , compared to operating income of $ 49.2 million . the operating loss was driven by fourth quarter 2019 goodwill and other long-lived asset impairment charges in the performance materials segment of $ 64.2 million and incremental 2019 intangible assets amortization of $ 12.2 million in the performance materials segment , combined with incremental manufacturing and logistics costs in the thermal acoustical solutions segment . the following items are included in operating income ( loss ) for 2019 and 2018 and impact the comparability of each year : replace_table_token_4_th in the second quarter of 2019 , the company settled the pension obligation of the u.s. lydall pension plan , which was partially offset by a gain recognized from the withdrawal from a multi-employer pension plan in the fourth quarter of 2019 and resulted in net non-cash settlement expenses of $ 25.2 million , or $ 0.86 per diluted share , in 2019. net loss was $ ( 70.5 ) million , or $ ( 4.08 ) per diluted share in 2019 , compared to net income of $ 34.9 million , or 2.02 per diluted share in 2018 . liquidity cash was $ 51.3 million at december 31 , 2019 , compared to $ 49.2 million at december 31 , 2018. net cash provided by operations was $ 86.9 million in 2019 compared to $ 44.7 million in 2018 , with the improvement primarily driven by lower accounts receivable . cash generation of $ 86.9 million in 2019 enabled the company to pay down $ 52 million of outstanding borrowings from its amended credit agreement . as of december 31 , 2019 , there was $ 121.6 million of availability under the company 's amended credit agreement . the company 's cash from operations and capacity under its amended credit agreement provide for sufficient cash availability to support organic growth programs and fund capital investments . 19 outlook while the company has seen some recent stabilization in the end markets for interface sealing products , weaker demand in european industrial markets is impacting all of the company 's segments . in china , the company is closely monitoring the impact of the coronavirus on its businesses and expects that its first quarter results will be negatively impacted , but is uncertain with regards to the severity and duration of the impact . the company has started a strategic review , which it expects to conclude by the end of the second quarter of 2020 , to evaluate lydall 's portfolio and end markets . the objective is to prioritize strategic actions that optimize capital allocation and drive long-term shareholder value . as part of the process , the company is identifying specific near-term opportunities for improvement in commercial performance , cost structure and working capital . 20 consolidated results of operations net sales replace_table_token_5_th net sales for 2019 increased by $ 51.5 million , or 6.6 % , compared to 2018. this increase was related to incremental sealing and advanced solutions sales of $ 76.0 million , primarily from the acquisition of interface , which led to increased performance materials net sales of $ 76.3 million , or 9.7 % of consolidated net sales . net sales decreased in the technical nonwovens segment by $ 20.5 million , net of intercompany sales , driven primarily by a decline in demand in the industrial filtration market , primarily in china and europe . additionally , the divestiture of the geosol business in the second quarter of 2019 reduced net sales by $ 7.0 million in 2019 compared to 2018. net sales decreased by $ 3.9 million in the thermal acoustical solutions segment due to decreased tooling sales of $ 2.2 million , related to the timing of new platform launches , and lower parts sales of $ 1.6 million as reduced demand in north america was partially offset by increased demand in europe and asia . foreign currency translation had a negative impact on net sales of $ 16.3 million , or 2.1 % of consolidated net sales , impacting the technical nonwovens segment by $ 7.3 million , or 0.9 % of consolidated net sales , the thermal acoustical solutions segment by $ 6.4 million , or 0.8 % of consolidated net sales and the performance materials segment by $ 2.6 million , or 0.3 % of consolidated net sales . cost of sales replace_table_token_6_th cost of sales for 2019 increased by $ 52.4 million , or 8.3 % , compared to 2018. the increase was primarily related to increased net sales of sealing and advanced solutions products from the interface acquisition of $ 76.0 million , within the performance materials segment . additionally , labor inefficiencies and increased overhead costs drove increased cost of sales in 2019 compared to 2018 within the performance materials segment . also , the thermal acoustical solutions segment contributed increased cost of sales of $ 10.5 million on reduced sales levels in 2019 compared to 2018 , primarily due to operating inefficiencies in its north america and europe facilities . story_separator_special_tag in november 2018 , the company entered into a five year interest rate swap agreement with a bank which converts the interest on a notional $ 139.0 million of the company 's one-month libor-based borrowings under its amended credit agreement from a variable rate , plus the borrowing spread , to a fixed rate of 3.09 % plus the borrowing spread . the notional amount reduces quarterly by fluctuating amounts through august 2023. in april 2017 , the company entered into a three -year interest rate swap agreement with a bank which converts the interest on a notional $ 60.0 million of the company 's one-month libor-based borrowings under its amended credit agreement from a variable rate , plus the borrowing spread , to a fixed rate of 1.58 % plus the borrowing spread . the notional amount reduces quarterly by $ 5.0 million through march 31 , 2020. these interest rate swap agreements were accounted for as cash flow hedges . effectiveness of these derivative agreements are assessed quarterly by ensuring that the critical terms of the swaps continue to match the critical terms of the hedged debt . in november 2019 , the company entered into three fixed-to-fixed cross-currency swaps with banking institutions with aggregate notional amounts totaling 67.8 million ( $ 75 million u.s. dollar equivalent ) . these swaps hedge a portion of lydall , inc 's net investment in an euro functional currency denominated subsidiary against the variability of exchange 27 rate translation impacts between the u.s. dollar and euro . these contracts require monthly cash interest exchanges over the life of the contracts with the company recognizing a reduction to interest expense in the company 's consolidated statements of operations due to the favorable interest rate differential between the u.s. dollar and euro , which is expected to be approximately $ 1.3 million in 2020. also , settlement of the notional 22.6 million ( $ 25 million u.s. dollar equivalent ) cross-currency swaps occur at maturity dates of august 2021 , august 2022 and august 2023. in addition to the amounts outstanding under the facility , the company has various foreign credit facilities totaling approximately $ 7.0 million . at december 31 , 2019 , the company 's foreign subsidiaries had $ 2.1 million in standby letters of credit outstanding . future cash requirements the company manages worldwide cash requirements considering available funds among domestic and foreign subsidiaries . the company expects to fund its operating cash requirements from existing cash balances , cash generated by operations , and through borrowings , as needed , under its existing domestic and foreign credit facilities . if completed , such activities would be financed with existing cash balances , cash generated from operations , borrowings under the credit facilities described under “ financing arrangements ” above or other forms of financing , as required . at december 31 , 2019 , total indebtedness was $ 272.6 million , of which $ 126.5 million was a revolver loan and $ 146.1 million , net of $ 0.4 million of capitalized debt costs , was a term loan . these loans are governed by the amended credit agreement and totaled 46.1 % of the company 's total capital structure at december 31 , 2019. cash requirements for 2020 are expected to include the funding of ongoing operations , capital expenditures , restructuring programs , payments due on finance and operating leases , pension plan contributions , income tax payments , term loan payments and optional prepayments on the revolver loan . capital spending for 2020 is expected to be approximately $ 25 million to $ 30 million . the funded status of the company 's defined benefit pension plans are dependent upon many factors , including returns on invested assets , levels of market interest rates , mortality rates and levels of contributions to the plan . the company expects to contribute approximately $ 2.4 million to its domestic defined employee benefit plans in 2020. see note 12 to the consolidated financial statements included in this annual report on form 10-k for additional information regarding the company 's pension plans . contractual obligations the following table summarizes the company 's significant contractual obligations as of december 31 , 2019 and the effect of such contractual obligations are expected to have on the company 's liquidity and cash flows in future periods . for recent financing activity please refer to “ financing arrangements ” above . replace_table_token_17_th * includes estimated interest payments the company has finance lease agreements for machinery and equipment at multiple operations requiring monthly principal and interest payments through 2020 . operating leases are primarily related to buildings , office equipment , vehicles and machinery with payments through 2033. the company 's long-term debt payments in the table above represent the estimated annual required term loan fixed principal payments , revolver loan payments due in 2023 and annual interest payments . actual payments may vary 28 significantly depending on future debt levels , timing of debt repayments and sources of funding utilized . refer to note 8 to the consolidated financial statements included in this annual report on form 10-k for additional discussion on long-term debt . the company 's future employee benefit plan contributions relate to the minimum contributions for the 2020 plan year based on the company 's employee benefit plan valuations at december 31 , 2019. see note 12 to the consolidated financial statements for additional information regarding the company 's employee benefit plans . in addition to the above contractual obligations , the company utilizes letters of credit in the ordinary course of business . outstanding letters of credit were $ 4.0 million and $ 6.1 million at december 31 , 2019 and 2018 , respectively . the above table does not reflect net tax contingencies of $ 3.2 million , the timing of which is uncertain . refer to note 16 to the consolidated financial statements included in this annual report

risk factors ” and elsewhere in this annual report on form 10-k. forward looking statements all statements other than statements of historical fact included in this form 10-k including , without limitation , statements under “ management 's discussion and analysis of financial condition and results of operations ” regarding the company 's financial position , business strategy and the plans and objectives of management for future operations , are forward-looking statements . when used in this form 10-k , words such as “ anticipate , ” “ believe , ” “ estimate , ” “ expect , ” “ intend ” and similar expressions , as they relate to us or the company 's 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 , the company 's management . actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors detailed in our filings with the sec . the following discussion and analysis of our financial condition and results of operations should be read in conjunction with the financial statements and the notes thereto contained elsewhere in this form 10-k. certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties . overview we are a blank check company formed under the laws of the state of delaware for the purpose of effecting a merger , capital stock exchange , asset acquisition , stock purchase , reorganization or other similar business combination with one or more businesses . we intend to effectuate our business combination using cash from the proceeds of the ipo and the sale of the private placement warrants , our capital stock , debt or a combination of cash , stock and debt . recent developments skillsoft merger agreement on october 12 , 2020 , we entered into an agreement and plan of merger ( the “ skillsoft merger agreement ” ) by and between us and skillsoft . pursuant to the terms of the skillsoft merger agreement , a business combination between us and skillsoft will be effected through the merger of skillsoft with and into the company , with the company surviving as the surviving company ( the “ skillsoft merger ” ) . at the effective time of the skillsoft merger ( the “ effective time ” ) , ( a ) each class a share of skillsoft , with nominal value of $ 0.01 per share ( “ skillsoft class a shares ” ) , outstanding immediately prior to the effective time , will be automatically canceled and we will issue as consideration therefor ( i ) such number of shares of our class a common stock , par value $ 0.0001 per share ( the “ churchill class a common stock ” ) equal to the class a first lien exchange ratio ( as defined in the skillsoft merger agreement ) , and ( ii ) the company 's class c common stock , par value $ 0.0001 per share ( the “ churchill class c common stock ” ) , equal to the class c exchange ratio ( as defined in the skillsoft merger agreement ) , and ( b ) each class b share of skillsoft , with nominal value of $ 0.01 per share ( “ skillsoft class b shares ” ) , will be automatically canceled and the company will issue as consideration therefor such number of shares of the company 's class a common stock equal to the per class b share merger consideration ( as defined in the skillsoft merger agreement ) . pursuant to the terms of the skillsoft merger agreement , the company is required to use commercially reasonable efforts to cause the company class a common stock to be issued in connection with the transactions contemplated by the skillsoft merger agreement ( the “ skillsoft transactions ” ) to be listed on the new york stock exchange ( “ nyse ” ) prior to the closing of the skillsoft merger ( the “ skillsoft closing ” ) . immediately following the effective time , the company will redeem all of the shares of class c common stock issued to the holders of skillsoft class a shares for an aggregate redemption price of ( i ) $ 505,000,000 in cash and ( ii ) indebtedness under the existing second out credit agreement ( as defined in the skillsoft merger agreement ) , as amended by the existing second out credit agreement amendment ( as defined in the skillsoft merger agreement ) , in the aggregate principal amount equal to the sum of $ 20,000,000 to be issued by the surviving corporation ( as defined in the skillsoft merger agreement ) or one of its subsidiaries , in each case , pro rata among the holders of churchill class c common stock issued in connection with the skillsoft merger . 39 the consummation of the proposed skillsoft transactions is subject to the receipt of the requisite approval of ( i ) the stockholders of churchill ( the “ churchill stockholder approval ” ) and ( ii ) the shareholders of skillsoft ( the “ skillsoft shareholder approval ” ) and the fulfillment of certain other conditions . in october 2020 , the company was advanced $ 2,000,000 for expenses incurred with with skillsoft merger . if the planned business combination is not completed , the company would be required to refund any unused amount . story_separator_special_tag on november 10 , 2020 , prosus exercised the option to subscribe for an additional 40,000,000 shares of churchill class a common stock in the second step prosus investment ( or such number of shares as may be reduced pursuant to the prosus subscription agreement ) . churchill and prosus also agreed that following the consummation of the skillsoft merger , to the extent that following the prosus second step investment , prosus beneficially owns less than the prosus maximum ownership amount , prosus will have the concurrent right to purchase a number of additional shares of churchill class a common stock , at $ 10.00 per share , that would result in prosus maintaining beneficial ownership of at least , but no more than , the prosus maximum ownership amount ( the “ prosus top-up right ” ) . suro subscription agreement on october 14 , 2020 , in connection with the execution of the skillsoft merger agreement , churchill entered into a subscription agreement with suro capital corp. ( “ suro ” ) pursuant to which suro subscribed for 1,000,000 newly-issued shares of churchill class a common stock , at a purchase price of $ 10.00 per share , to be issued at the closing of the merger ( the “ suro subscription agreement ” ) . the obligations to consummate the transactions contemplated by the suro subscription agreement are conditioned upon , among other things , customary closing conditions and the consummation of the skillsoft merger . lodbrok subscription agreement on october 13 , 2020 , in connection with the execution of the global knowledge merger agreement , churchill entered into a subscription agreement with lodbrok capital llp ( “ lodbrok ” ) pursuant to which lodbrok subscribed for 2,000,000 newly-issued shares of churchill class a common stock , at a purchase price of $ 10.00 per share , to be issued at the closing of the global knowledge merger ( the “ lodbrok subscription agreement ” ) . the obligations to consummate the transactions contemplated by the lodbrok subscription agreement are conditioned upon , among other things , customary closing conditions and the consummation of the global knowledge merger . for more information about the skillsoft merger , global knowledge merger and other recent developments , please see “ item 1. business - recent developments . ” results of operations we have neither engaged in any operations nor generated any revenues to date . our only activities through december 31 , 2020 were organizational activities , those necessary to prepare for the initial public offering , identifying a target for our business combination , and activities in connection with the proposed acquisition of skillsoft . we do not expect to generate any operating revenues until after the completion of our business combination . we generate non-operating income in the form of interest income on marketable securities held in the trust account . we incur expenses as a result of being a public company ( for legal , financial reporting , accounting and auditing compliance ) , as well as for due diligence expenses . for the year ended december 31 , 2020 , we had net income of $ 1,124,364 , which consists of reimbursement of transaction expenses of $ 2,000,000 , interest income on marketable securities held in the trust account of $ 2,516,752 and an unrealized gain on marketable securities held in our trust account of $ 1,276 offset by operating costs of $ 2,906,903 , and a provision for income taxes of $ 486,761. for the period from april 11 , 2019 ( inception ) through december 31 , 2019 , we had net income of $ 4,693,042 , which consists of interest income on marketable securities held in the trust account of $ 6,639,430 and an unrealized gain on marketable securities held in our trust account of $ 45,988 , offset by formation and operating costs of $ 744,859 , and a provision for income taxes of $ 1,247,517. story_separator_special_tag margin : 0pt 0 ; text-indent : 0.5in `` > the underwriters are entitled to a deferred fee of $ 21,371,000 in the aggregate . the deferred fee will be waived by the underwriters in the event that we do not complete a business combination , subject to the terms of the underwriting agreement . on july 1 , 2019 , the underwriters agreed to waive the upfront and deferred underwriting discount on 7,940,000 units , resulting in a reduction of the upfront and deferred underwriting discount of $ 1,588,000 and $ 2,779,000 , respectively . critical accounting policies the preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the united states of america requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities , disclosure of contingent assets and liabilities at the date of the financial statements , and income and expenses during the periods reported . actual results could materially differ from those estimates . we have identified the following critical accounting policies : class a common stock subject to possible redemption we account for our class a common stock subject to possible conversion in accordance with the guidance in accounting standards codification ( “ asc ” ) topic 480 “ distinguishing liabilities from equity . ” shares of class a common stock subject to mandatory redemption is classified as a liability instrument and measured at fair value . conditionally redeemable common stock ( including common stock that features 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 ) is classified as temporary equity . at all other times , common stock is 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 occurrence of uncertain future events . accordingly , class a common

liquidity and capital resources on july 1 , 2019 , we consummated the initial public offering of 69,000,000 units at a price of $ 10.00 per unit , which includes the full exercise by the underwriters of the over-allotment option , at $ 10.00 per unit , generating gross proceeds of $ 690,000,000. simultaneously with the closing of the ipo , we consummated the sale of 15,800,000 private placement warrants to the sponsor at a price of $ 1.00 per warrant , generating gross proceeds of $ 15,800,000 . 40 following the ipo , the exercise of the over-allotment option and the sale of the private placement warrants , a total of $ 690,000,000 was placed in the trust account . we incurred $ 34,319,807 in transaction costs , including $ 12,212,000 of underwriting fees , $ 21,371,000 of deferred underwriting fees and $ 736,807 of other costs . as of december 31 , 2020 , we had cash and marketable securities held in the trust account of $ 696,957,196 ( including approximately $ 6,957,000 of interest income and unrealized gains ) consisting of u.s. treasury bills with a maturity of 185 days or less . interest income on the balance in the trust account may be used by us to pay taxes . through december 31 , 2020 , we withdrew $ 2,246,250 of interest earned on the trust account to pay our income taxes and for permitted withdrawals , of which $ 856,250 was withdrawn during the year ended december 31 , 2020. for the year ended december 31 , 2020 , cash used in operating activities was $ 720,660. net income of $ 1,124,364 was affected by interest earned on marketable securities held in the trust account of $ 2,516,752 , an unrealized gain on marketable securities held in our trust account of $ 1,276 and a deferred tax benefit of $ 8,681. changes in operating assets and liabilities provided $ 681,685 of cash for operating activities .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources on july 1 , 2019 , we consummated the initial public offering of 69,000,000 units at a price of $ 10.00 per unit , which includes the full exercise by the underwriters of the over-allotment option , at $ 10.00 per unit , generating gross proceeds of $ 690,000,000. simultaneously with the closing of the ipo , we consummated the sale of 15,800,000 private placement warrants to the sponsor at a price of $ 1.00 per warrant , generating gross proceeds of $ 15,800,000 . 40 following the ipo , the exercise of the over-allotment option and the sale of the private placement warrants , a total of $ 690,000,000 was placed in the trust account . we incurred $ 34,319,807 in transaction costs , including $ 12,212,000 of underwriting fees , $ 21,371,000 of deferred underwriting fees and $ 736,807 of other costs . as of december 31 , 2020 , we had cash and marketable securities held in the trust account of $ 696,957,196 ( including approximately $ 6,957,000 of interest income and unrealized gains ) consisting of u.s. treasury bills with a maturity of 185 days or less . interest income on the balance in the trust account may be used by us to pay taxes . through december 31 , 2020 , we withdrew $ 2,246,250 of interest earned on the trust account to pay our income taxes and for permitted withdrawals , of which $ 856,250 was withdrawn during the year ended december 31 , 2020. for the year ended december 31 , 2020 , cash used in operating activities was $ 720,660. net income of $ 1,124,364 was affected by interest earned on marketable securities held in the trust account of $ 2,516,752 , an unrealized gain on marketable securities held in our trust account of $ 1,276 and a deferred tax benefit of $ 8,681. changes in operating assets and liabilities provided $ 681,685 of cash for operating activities . ``` Suspicious Activity Report : risk factors ” and elsewhere in this annual report on form 10-k. forward looking statements all statements other than statements of historical fact included in this form 10-k including , without limitation , statements under “ management 's discussion and analysis of financial condition and results of operations ” regarding the company 's financial position , business strategy and the plans and objectives of management for future operations , are forward-looking statements . when used in this form 10-k , words such as “ anticipate , ” “ believe , ” “ estimate , ” “ expect , ” “ intend ” and similar expressions , as they relate to us or the company 's 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 , the company 's management . actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors detailed in our filings with the sec . the following discussion and analysis of our financial condition and results of operations should be read in conjunction with the financial statements and the notes thereto contained elsewhere in this form 10-k. certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties . overview we are a blank check company formed under the laws of the state of delaware for the purpose of effecting a merger , capital stock exchange , asset acquisition , stock purchase , reorganization or other similar business combination with one or more businesses . we intend to effectuate our business combination using cash from the proceeds of the ipo and the sale of the private placement warrants , our capital stock , debt or a combination of cash , stock and debt . recent developments skillsoft merger agreement on october 12 , 2020 , we entered into an agreement and plan of merger ( the “ skillsoft merger agreement ” ) by and between us and skillsoft . pursuant to the terms of the skillsoft merger agreement , a business combination between us and skillsoft will be effected through the merger of skillsoft with and into the company , with the company surviving as the surviving company ( the “ skillsoft merger ” ) . at the effective time of the skillsoft merger ( the “ effective time ” ) , ( a ) each class a share of skillsoft , with nominal value of $ 0.01 per share ( “ skillsoft class a shares ” ) , outstanding immediately prior to the effective time , will be automatically canceled and we will issue as consideration therefor ( i ) such number of shares of our class a common stock , par value $ 0.0001 per share ( the “ churchill class a common stock ” ) equal to the class a first lien exchange ratio ( as defined in the skillsoft merger agreement ) , and ( ii ) the company 's class c common stock , par value $ 0.0001 per share ( the “ churchill class c common stock ” ) , equal to the class c exchange ratio ( as defined in the skillsoft merger agreement ) , and ( b ) each class b share of skillsoft , with nominal value of $ 0.01 per share ( “ skillsoft class b shares ” ) , will be automatically canceled and the company will issue as consideration therefor such number of shares of the company 's class a common stock equal to the per class b share merger consideration ( as defined in the skillsoft merger agreement ) . pursuant to the terms of the skillsoft merger agreement , the company is required to use commercially reasonable efforts to cause the company class a common stock to be issued in connection with the transactions contemplated by the skillsoft merger agreement ( the “ skillsoft transactions ” ) to be listed on the new york stock exchange ( “ nyse ” ) prior to the closing of the skillsoft merger ( the “ skillsoft closing ” ) . immediately following the effective time , the company will redeem all of the shares of class c common stock issued to the holders of skillsoft class a shares for an aggregate redemption price of ( i ) $ 505,000,000 in cash and ( ii ) indebtedness under the existing second out credit agreement ( as defined in the skillsoft merger agreement ) , as amended by the existing second out credit agreement amendment ( as defined in the skillsoft merger agreement ) , in the aggregate principal amount equal to the sum of $ 20,000,000 to be issued by the surviving corporation ( as defined in the skillsoft merger agreement ) or one of its subsidiaries , in each case , pro rata among the holders of churchill class c common stock issued in connection with the skillsoft merger . 39 the consummation of the proposed skillsoft transactions is subject to the receipt of the requisite approval of ( i ) the stockholders of churchill ( the “ churchill stockholder approval ” ) and ( ii ) the shareholders of skillsoft ( the “ skillsoft shareholder approval ” ) and the fulfillment of certain other conditions . in october 2020 , the company was advanced $ 2,000,000 for expenses incurred with with skillsoft merger . if the planned business combination is not completed , the company would be required to refund any unused amount . story_separator_special_tag on november 10 , 2020 , prosus exercised the option to subscribe for an additional 40,000,000 shares of churchill class a common stock in the second step prosus investment ( or such number of shares as may be reduced pursuant to the prosus subscription agreement ) . churchill and prosus also agreed that following the consummation of the skillsoft merger , to the extent that following the prosus second step investment , prosus beneficially owns less than the prosus maximum ownership amount , prosus will have the concurrent right to purchase a number of additional shares of churchill class a common stock , at $ 10.00 per share , that would result in prosus maintaining beneficial ownership of at least , but no more than , the prosus maximum ownership amount ( the “ prosus top-up right ” ) . suro subscription agreement on october 14 , 2020 , in connection with the execution of the skillsoft merger agreement , churchill entered into a subscription agreement with suro capital corp. ( “ suro ” ) pursuant to which suro subscribed for 1,000,000 newly-issued shares of churchill class a common stock , at a purchase price of $ 10.00 per share , to be issued at the closing of the merger ( the “ suro subscription agreement ” ) . the obligations to consummate the transactions contemplated by the suro subscription agreement are conditioned upon , among other things , customary closing conditions and the consummation of the skillsoft merger . lodbrok subscription agreement on october 13 , 2020 , in connection with the execution of the global knowledge merger agreement , churchill entered into a subscription agreement with lodbrok capital llp ( “ lodbrok ” ) pursuant to which lodbrok subscribed for 2,000,000 newly-issued shares of churchill class a common stock , at a purchase price of $ 10.00 per share , to be issued at the closing of the global knowledge merger ( the “ lodbrok subscription agreement ” ) . the obligations to consummate the transactions contemplated by the lodbrok subscription agreement are conditioned upon , among other things , customary closing conditions and the consummation of the global knowledge merger . for more information about the skillsoft merger , global knowledge merger and other recent developments , please see “ item 1. business - recent developments . ” results of operations we have neither engaged in any operations nor generated any revenues to date . our only activities through december 31 , 2020 were organizational activities , those necessary to prepare for the initial public offering , identifying a target for our business combination , and activities in connection with the proposed acquisition of skillsoft . we do not expect to generate any operating revenues until after the completion of our business combination . we generate non-operating income in the form of interest income on marketable securities held in the trust account . we incur expenses as a result of being a public company ( for legal , financial reporting , accounting and auditing compliance ) , as well as for due diligence expenses . for the year ended december 31 , 2020 , we had net income of $ 1,124,364 , which consists of reimbursement of transaction expenses of $ 2,000,000 , interest income on marketable securities held in the trust account of $ 2,516,752 and an unrealized gain on marketable securities held in our trust account of $ 1,276 offset by operating costs of $ 2,906,903 , and a provision for income taxes of $ 486,761. for the period from april 11 , 2019 ( inception ) through december 31 , 2019 , we had net income of $ 4,693,042 , which consists of interest income on marketable securities held in the trust account of $ 6,639,430 and an unrealized gain on marketable securities held in our trust account of $ 45,988 , offset by formation and operating costs of $ 744,859 , and a provision for income taxes of $ 1,247,517. story_separator_special_tag margin : 0pt 0 ; text-indent : 0.5in `` > the underwriters are entitled to a deferred fee of $ 21,371,000 in the aggregate . the deferred fee will be waived by the underwriters in the event that we do not complete a business combination , subject to the terms of the underwriting agreement . on july 1 , 2019 , the underwriters agreed to waive the upfront and deferred underwriting discount on 7,940,000 units , resulting in a reduction of the upfront and deferred underwriting discount of $ 1,588,000 and $ 2,779,000 , respectively . critical accounting policies the preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the united states of america requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities , disclosure of contingent assets and liabilities at the date of the financial statements , and income and expenses during the periods reported . actual results could materially differ from those estimates . we have identified the following critical accounting policies : class a common stock subject to possible redemption we account for our class a common stock subject to possible conversion in accordance with the guidance in accounting standards codification ( “ asc ” ) topic 480 “ distinguishing liabilities from equity . ” shares of class a common stock subject to mandatory redemption is classified as a liability instrument and measured at fair value . conditionally redeemable common stock ( including common stock that features 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 ) is classified as temporary equity . at all other times , common stock is 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 occurrence of uncertain future events . accordingly , class a common

our results of operations are also affected by the regulations and industry policies related to the microcredit industry in the prc . due to changes in the applicable microcredit lending regulations in jiangsu province , starting august 2012 we elected to charge no more than three times the pboc benchmark rate . prior to august 2012 , we were allowed to charge up to four times the pboc benchmark rate . the decrease in the pboc benchmark rate and the new restriction on the allowable points above pboc benchmark rate have slowed our growth in net interest income . our results of operations are also affected by the provision for loan losses which is a noncash item and represents an assessment of the risk of future loan losses . increases in the allowance for loan losses are achieved through provision for loan losses that are charged against net interest income . although we have generally benefited from china 's economic growth and the policies to encourage lending to farmers and smes , we are also affected by the complexity , uncertainties and changes in the prc regulations governing the micro lending industry . due to prc legal restrictions on foreign equity ownership of and investment in the micro lending sector in china , we rely on contractual arrangements with wujiang luxiang , and its shareholders to conduct most of our current business in china . 45 results of operations year ended december 31 , 2013 as compared to the year ended december 31 , 2012 china commercial credit , inc consolidated statements of income and comprehensive income replace_table_token_4_th 46 the company 's net income for the year ended december 31 , 2013 was $ 7,704,970 , representing a decrease of $ 607,499 or 7 % , from $ 8,312,469 for the year ended december 31 , 2012. the decrease in net income for the year ended december 31 , 2013 was the net effect of the changes in the following components : · an increase in net interest income of $ 310,428 ; · an increase in the provision for loan losses of $ 399,034 ; · an increase in net commission and fees on guarantee services of $ 42,957 ; · an increase in total non-interest expense of $ 733,448 ; and · an decrease in enterprise income tax of $ 326,694 the following paragraphs discuss changes in the components of net income in greater details during the year ended december 31 , 2013 , as compared to the year ended december 31 , 2012. net interest income net interest income is equal to interest income we generated less interest expenses we incurred . the company 's net interest income increased by $ 310,428 , or 3 % to $ 11,301,406 during the year ended december 31 , 2013 , compared to net interest income of $ 10,990,978 for the year ended december 31 , 2012. despite of the decrease of the effective weighted average loan interest rate from 15.22 % for the loan portfolio as of december 31 , 2012 to 14.50 % for the loan portfolio as of december 31 , 2013 , the interest income increased during the year ended december 31 , 2013. this was primarily attributable to the expansion of the company 's loan portfolio by $ 4.4 million from $ 85.8 million as of december 31 , 2012 to $ 90.2 million as of december 31 , 2013. during the year ended december 31 , 2013 , we added 526 new loans and the average loan size was approximately $ 429,000 , as compared to the year ended december 31 , 2012 , when we added 581 new loans with an average loan size of $ 365,000. during the year ended december 31 , 2013 , we continued our effort to reduce related party transactions and accordingly the interest income from the loans to related party was reduced to zero from $ 13,119 during the year ended december 31 , 2012. due to the long-term nature of our restricted deposits with third party banks , we utilized these deposits as term deposits during the year ended december 31 , 2013 which in turn generated interest income on deposits with banks of $ 220,820 as compared to $ 272,782 during the year ended december 31 , 2012. the decrease was mainly due to the close of a restricted deposit account with a bank through which we provided guarantee services to our customers in april 2013. interest expense represents interest incurred on short-term bank loans . the interest incurred on short term bank loans decreased by $ 154,864 , or 12 % . this was mainly caused by decrease of total bank borrowing balance by $ 4.25 million from $ 20.61 million as of december 31 , 2012 to $ 16.36 million as of december 31 , 2013. in both years ended december 31 , 2013 and 2012 , there was no interest expense related to the loans from related parties as a result of our effort to reduce related party transactions . 47 provision for loan losses the company 's provision for loan losses were $ 484,069 and $ 85,035 for the year ended december 31 , 2013 and 2012 , respectively . provision for loan losses increased as our loan receivable balance increased and hence higher risk was assessed . in accordance with the aging schedule , during the year ended december 31 , 2013 , certain loans in category of “ special mention ” were moved down to the “ doubtful ” and “ loss ” categories subject to the higher provision ratio of 50 % and 100 % , respectively . we have initiated several legal proceedings against customers with long over-due outstanding repayment obligations . story_separator_special_tag 2014-02 , intangibles - goodwill and other ( topic 350 ) : accounting for goodwill . this asu permits a private company to subsequently amortize goodwill on a straight-line basis over a period of ten years , or less if the company demonstrates that another useful life is more appropriate . it also permits a private company to apply a simplified impairment model to goodwill . this asu , if elected , should be applied prospectively to goodwill existing as of the beginning of the period of adoption and to new goodwill recognized in annual periods beginning after december 15 , 2014 , and in interim periods within annual periods beginning after december 15 , 2015. early application is permitted , including application to any period for which the entity 's annual or interim financial statements have not been made available for issuance . the adoption of this standard is not expected to have any impact on the company 's financial position . the fasb has issued asu no . 2013-11 , income taxes ( topic 740 ) : presentation of an unrecognized tax benefit when a net operating loss carryforward , a similar tax loss , or a tax credit carryforward exists ( a consensus of the fasb emerging issues task force ) . the amendments in this asu state that an unrecognized tax benefit , or a portion of an unrecognized tax benefit , should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward , a similar tax loss , or a tax credit carryforward , except as follows . to the extent a net operating loss carryforward , a similar tax loss , or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use , and the entity does not intend to use , the deferred tax asset for such purpose , the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets . the amendments in this asu are effective for fiscal years , and interim periods within those years , beginning after december 15 , 2013. for nonpublic entities , the amendments are effective for fiscal years , and interim periods within those years , beginning after december 15 , 2014. early adoption is permitted . the amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date . retrospective application is permitted . the adoption of this standard is not expected to have any impact on the company 's financial position . 54 item 8. financial statements and supplementary data . our consolidated financial statements and notes thereto and the report of marcum bernstein & pinchuk llp , our independent registered public accounting firm , are set forth on pages f-1 through f-26 of this report . item 9. changes in and disagreements with accountants on accounting and financial disclosure . none . item 9a . controls and procedures . evaluation of disclosure controls and procedures based on an evaluation under the supervision and with the participation of the company 's management , the company 's principal executive officer and principal financial officer have concluded that the company 's disclosure controls and procedures as defined in rules 13a-15 ( e ) and 15d-15 ( e ) under the exchange act were [ effective/not effective ] as of december 31 , 2013 to provide reasonable assurance that information required to be disclosed by the company in reports that it files or submits under the exchange act is ( i ) recorded , processed , summarized and reported within the time periods specified in the securities and exchange commission ( “ sec ” ) rules and forms , and ( ii ) accumulated and communicated to the company 's management , including its principal executive officer and principal financial officer , as appropriate , to allow timely decisions regarding required disclosure . inherent limitations over internal controls the company 's internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with u.s. generally accepted accounting principles ( “ gaap ” ) . the company 's internal control over financial reporting includes those policies and procedures that : ( i ) pertain to the maintenance of records that , in reasonable detail , accurately and fairly reflect the transactions and dispositions of the company 's assets ; ( ii ) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with gaap , and that the company 's receipts and expenditures are being made only in accordance with authorizations of the company 's management and directors ; and ( iii ) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition , use , or disposition of the company 's assets that could have a material effect on the financial statements . management , including the company 's principal executive officer and principal financial officer , does not expect that the company 's internal controls will prevent or detect all errors and all fraud . a control system , no matter how well designed and operated , can provide only reasonable , not absolute , assurance that the objectives of the control system are met . further , the design of a control system must reflect the fact that there are resource constraints , and the benefits of controls must be considered relative to their costs . because of the inherent limitations in all control systems , no evaluation of internal controls can provide absolute assurance that all control issues and instances of

net cash provided by operating activities during the year ended december 31 , 2013 , we had positive cash flow from operating activities of $ 6,605,544 , a decrease of $ 1,690,394 from the year ended december 31 , 2012 , during which we had cash flow from operating activities of $ 8,295,938. the net income for the year ended december 31 , 2013 decreased by $ 607,499 as compared to the year ended december 31 , 2012. the decrease in net cash provided by operating activities was the result of several factors , including : · an increase in cash flow due to an increase of non-cash items which was primarily due to the increase in the provision for loan losses of $ 399,034 . · a decrease in cash flow due to over provision for financial guarantee increased by $ 302,325 . · a decrease in cash flow due to the increase in changes in net tax receivable by $ 1,414,349. the change in net tax receivable as of december 31 , 2013 was $ 830,477 as compared to the change in net tax receivable as of december 31 , 2012 of $ 583,872. the company was required to prepay enterprise income taxes at a rate of 25 % on a quarterly basis when the applicable tax rate was 12.5 % for the loan business and 25 % for the guarantee business , respectively . within five months after fiscal year end , the company and the tax authority resolved the difference between the taxes paid and taxes due .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 during the year ended december 31 , 2013 , we had positive cash flow from operating activities of $ 6,605,544 , a decrease of $ 1,690,394 from the year ended december 31 , 2012 , during which we had cash flow from operating activities of $ 8,295,938. the net income for the year ended december 31 , 2013 decreased by $ 607,499 as compared to the year ended december 31 , 2012. the decrease in net cash provided by operating activities was the result of several factors , including : · an increase in cash flow due to an increase of non-cash items which was primarily due to the increase in the provision for loan losses of $ 399,034 . · a decrease in cash flow due to over provision for financial guarantee increased by $ 302,325 . · a decrease in cash flow due to the increase in changes in net tax receivable by $ 1,414,349. the change in net tax receivable as of december 31 , 2013 was $ 830,477 as compared to the change in net tax receivable as of december 31 , 2012 of $ 583,872. the company was required to prepay enterprise income taxes at a rate of 25 % on a quarterly basis when the applicable tax rate was 12.5 % for the loan business and 25 % for the guarantee business , respectively . within five months after fiscal year end , the company and the tax authority resolved the difference between the taxes paid and taxes due . ``` Suspicious Activity Report : our results of operations are also affected by the regulations and industry policies related to the microcredit industry in the prc . due to changes in the applicable microcredit lending regulations in jiangsu province , starting august 2012 we elected to charge no more than three times the pboc benchmark rate . prior to august 2012 , we were allowed to charge up to four times the pboc benchmark rate . the decrease in the pboc benchmark rate and the new restriction on the allowable points above pboc benchmark rate have slowed our growth in net interest income . our results of operations are also affected by the provision for loan losses which is a noncash item and represents an assessment of the risk of future loan losses . increases in the allowance for loan losses are achieved through provision for loan losses that are charged against net interest income . although we have generally benefited from china 's economic growth and the policies to encourage lending to farmers and smes , we are also affected by the complexity , uncertainties and changes in the prc regulations governing the micro lending industry . due to prc legal restrictions on foreign equity ownership of and investment in the micro lending sector in china , we rely on contractual arrangements with wujiang luxiang , and its shareholders to conduct most of our current business in china . 45 results of operations year ended december 31 , 2013 as compared to the year ended december 31 , 2012 china commercial credit , inc consolidated statements of income and comprehensive income replace_table_token_4_th 46 the company 's net income for the year ended december 31 , 2013 was $ 7,704,970 , representing a decrease of $ 607,499 or 7 % , from $ 8,312,469 for the year ended december 31 , 2012. the decrease in net income for the year ended december 31 , 2013 was the net effect of the changes in the following components : · an increase in net interest income of $ 310,428 ; · an increase in the provision for loan losses of $ 399,034 ; · an increase in net commission and fees on guarantee services of $ 42,957 ; · an increase in total non-interest expense of $ 733,448 ; and · an decrease in enterprise income tax of $ 326,694 the following paragraphs discuss changes in the components of net income in greater details during the year ended december 31 , 2013 , as compared to the year ended december 31 , 2012. net interest income net interest income is equal to interest income we generated less interest expenses we incurred . the company 's net interest income increased by $ 310,428 , or 3 % to $ 11,301,406 during the year ended december 31 , 2013 , compared to net interest income of $ 10,990,978 for the year ended december 31 , 2012. despite of the decrease of the effective weighted average loan interest rate from 15.22 % for the loan portfolio as of december 31 , 2012 to 14.50 % for the loan portfolio as of december 31 , 2013 , the interest income increased during the year ended december 31 , 2013. this was primarily attributable to the expansion of the company 's loan portfolio by $ 4.4 million from $ 85.8 million as of december 31 , 2012 to $ 90.2 million as of december 31 , 2013. during the year ended december 31 , 2013 , we added 526 new loans and the average loan size was approximately $ 429,000 , as compared to the year ended december 31 , 2012 , when we added 581 new loans with an average loan size of $ 365,000. during the year ended december 31 , 2013 , we continued our effort to reduce related party transactions and accordingly the interest income from the loans to related party was reduced to zero from $ 13,119 during the year ended december 31 , 2012. due to the long-term nature of our restricted deposits with third party banks , we utilized these deposits as term deposits during the year ended december 31 , 2013 which in turn generated interest income on deposits with banks of $ 220,820 as compared to $ 272,782 during the year ended december 31 , 2012. the decrease was mainly due to the close of a restricted deposit account with a bank through which we provided guarantee services to our customers in april 2013. interest expense represents interest incurred on short-term bank loans . the interest incurred on short term bank loans decreased by $ 154,864 , or 12 % . this was mainly caused by decrease of total bank borrowing balance by $ 4.25 million from $ 20.61 million as of december 31 , 2012 to $ 16.36 million as of december 31 , 2013. in both years ended december 31 , 2013 and 2012 , there was no interest expense related to the loans from related parties as a result of our effort to reduce related party transactions . 47 provision for loan losses the company 's provision for loan losses were $ 484,069 and $ 85,035 for the year ended december 31 , 2013 and 2012 , respectively . provision for loan losses increased as our loan receivable balance increased and hence higher risk was assessed . in accordance with the aging schedule , during the year ended december 31 , 2013 , certain loans in category of “ special mention ” were moved down to the “ doubtful ” and “ loss ” categories subject to the higher provision ratio of 50 % and 100 % , respectively . we have initiated several legal proceedings against customers with long over-due outstanding repayment obligations . story_separator_special_tag 2014-02 , intangibles - goodwill and other ( topic 350 ) : accounting for goodwill . this asu permits a private company to subsequently amortize goodwill on a straight-line basis over a period of ten years , or less if the company demonstrates that another useful life is more appropriate . it also permits a private company to apply a simplified impairment model to goodwill . this asu , if elected , should be applied prospectively to goodwill existing as of the beginning of the period of adoption and to new goodwill recognized in annual periods beginning after december 15 , 2014 , and in interim periods within annual periods beginning after december 15 , 2015. early application is permitted , including application to any period for which the entity 's annual or interim financial statements have not been made available for issuance . the adoption of this standard is not expected to have any impact on the company 's financial position . the fasb has issued asu no . 2013-11 , income taxes ( topic 740 ) : presentation of an unrecognized tax benefit when a net operating loss carryforward , a similar tax loss , or a tax credit carryforward exists ( a consensus of the fasb emerging issues task force ) . the amendments in this asu state that an unrecognized tax benefit , or a portion of an unrecognized tax benefit , should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward , a similar tax loss , or a tax credit carryforward , except as follows . to the extent a net operating loss carryforward , a similar tax loss , or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use , and the entity does not intend to use , the deferred tax asset for such purpose , the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets . the amendments in this asu are effective for fiscal years , and interim periods within those years , beginning after december 15 , 2013. for nonpublic entities , the amendments are effective for fiscal years , and interim periods within those years , beginning after december 15 , 2014. early adoption is permitted . the amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date . retrospective application is permitted . the adoption of this standard is not expected to have any impact on the company 's financial position . 54 item 8. financial statements and supplementary data . our consolidated financial statements and notes thereto and the report of marcum bernstein & pinchuk llp , our independent registered public accounting firm , are set forth on pages f-1 through f-26 of this report . item 9. changes in and disagreements with accountants on accounting and financial disclosure . none . item 9a . controls and procedures . evaluation of disclosure controls and procedures based on an evaluation under the supervision and with the participation of the company 's management , the company 's principal executive officer and principal financial officer have concluded that the company 's disclosure controls and procedures as defined in rules 13a-15 ( e ) and 15d-15 ( e ) under the exchange act were [ effective/not effective ] as of december 31 , 2013 to provide reasonable assurance that information required to be disclosed by the company in reports that it files or submits under the exchange act is ( i ) recorded , processed , summarized and reported within the time periods specified in the securities and exchange commission ( “ sec ” ) rules and forms , and ( ii ) accumulated and communicated to the company 's management , including its principal executive officer and principal financial officer , as appropriate , to allow timely decisions regarding required disclosure . inherent limitations over internal controls the company 's internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with u.s. generally accepted accounting principles ( “ gaap ” ) . the company 's internal control over financial reporting includes those policies and procedures that : ( i ) pertain to the maintenance of records that , in reasonable detail , accurately and fairly reflect the transactions and dispositions of the company 's assets ; ( ii ) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with gaap , and that the company 's receipts and expenditures are being made only in accordance with authorizations of the company 's management and directors ; and ( iii ) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition , use , or disposition of the company 's assets that could have a material effect on the financial statements . management , including the company 's principal executive officer and principal financial officer , does not expect that the company 's internal controls will prevent or detect all errors and all fraud . a control system , no matter how well designed and operated , can provide only reasonable , not absolute , assurance that the objectives of the control system are met . further , the design of a control system must reflect the fact that there are resource constraints , and the benefits of controls must be considered relative to their costs . because of the inherent limitations in all control systems , no evaluation of internal controls can provide absolute assurance that all control issues and instances of

on march 16 , 2020 , the fed also announced action to inject more liquidity into the financial system by purchasing up to $ 500 billion of u.s. treasuries and $ 200 billion of mortgage-backed securities . all major stock exchanges experienced dramatic sell-offs . the dow , which had peaked at 29,568 in february , closed on friday , march 20 , 2020 at 19,174 , down 10,394 points , or 35 % . nasdaq was down 30 % , while the s & p 500 was down 32 % . even with a significant equity market recovery since the initial impact of covid-19 , economic conditions remain uncertain . with the closing of non-essential businesses throughout various parts of the country for a number of months and a continued impact to consumer spending , it is anticipated that the financial impact will be long-term . the coronavirus aid relief and economic security act , also known as the cares act , was a $ 2.2 trillion economic stimulus bill passed by congress and signed into law on march 27 , 2020 , by president donald trump . the major provisions of the cares act were direct small business aid for employers with fewer than 500 employees ; direct deposit stimulus payments to american households ; enhanced unemployment compensation benefits ; and direct aid to hospitals and health care 33 enb financial corp management 's discussion and analysis providers . the paycheck protection program ( ppp ) was part of this legislation , which provided relief to businesses and organizations provided they would retain their workforce and act within the provisions of the plan . the ppp was responsible for the corporation generating $ 77.7 million of loans by september 30 , 2020 , which was the highpoint in ppp loans for 2020. by december 31 , 2020 , ppp loan balances declined to $ 48.0 million , as a result of loan forgiveness and payoffs . after december 31 , 2020 , but prior to the filing of this form 10-k , legislation for a second round of ppp loans was passed , which resulted in the corporation 's total ppp loans increasing again in early 2021. consistent with the marketplace , the impact of the second round of ppp was not near as large as the first round . management anticipated that $ 25 million to $ 30 million of ppp loans would be generated in the second round . prior to the filing of this report , the corporation 's total ppp loans had again started to decline due to further loan forgiveness and payoffs . the economic impact of covid-19 had both negative and positive impacts on the corporation 's financial results . the corporation was able to achieve a higher level of earnings in 2020 than in 2019 , but the efficiency of these earnings was reduced . the pandemic caused a very low interest rate environment , which in turn caused a much larger balance sheet with a historic increase in deposits , increasing the corporation 's net interest income , despite a lower net interest margin . the corporation 's net interest income was also increased by the recognition of ppp loan fee income . offsetting the increase in net interest income was a larger increase in the provision for loan losses . as a result of the pandemic , management was guarded about expected increases in loan losses and higher associated provision for loan losses . management did incur $ 2.2 million more provision for loan loss expense in 2020 than it did in 2019 , however much of the provision increase was focused on a very small number of commercial loans . it remains to be determined what the long-term economic impact of covid-19 will be on the corporation 's borrowers and how it will affect the corporation 's forward earnings . the corporation recorded net income of $ 12,299,000 for the year ended december 31 , 2020 , a 7.9 % increase from the $ 11,395,000 earned during the same period in 2019. the 2019 net income was 16.9 % higher than the 2018 net income of $ 9,749,000. earnings per share , basic and diluted , were $ 2.20 in 2020 , compared to $ 2.01 in 2019 , and $ 1.71 in 2018. the increase in the corporation 's 2020 earnings was caused primarily by an increase in mortgage gains from selling mortgage assets on the secondary market . these gains increased by $ 3,914,000 , or 202.2 % in 2020 compared to 2019 due to a high volume of mortgage refinancings stemming from the very low interest rate environment as well as high margins received on loans sold on the secondary market . the corporation 's 2020 earnings were also aided by an increase in net interest income of $ 1,630,000 , or 4.5 % . net interest income accounts for 71 % of the gross income stream of the corporation . the corporation 's net interest margin decreased in 2020 to 3.24 % , from 3.53 % in 2019. loan yields decreased as a result of the federal reserve rate decrease in the first quarter of 2020 , immediately impacting the yields on the corporation 's variable rate loans . the decline in interest expense helped to partially offset the declining asset yields , but to a much smaller degree . the financial services industry uses two primary performance measurements to gauge performance : return on average assets ( roa ) and return on average equity ( roe ) . roa measures how efficiently a bank generates income based on the amount of assets or size of a company . roe measures the efficiency of a company in generating income based on the amount of equity or capital utilized . the latter measurement typically receives more attention from shareholders . the corporation 's 2020 roa was 0.96 % , compared to 1.01 % in 2019. story_separator_special_tag a result of the growth in balances as well as ppp fees that caused an increase in interest and fees on loans . loan pricing was challenging in 2020 as a result of the very low rate environment and competition resulting in fixed-rate loans being priced at very low levels and variable-rate loans priced at the prime rate or below . the prime rate was 4.75 % as of december 31 , 2019 , and was moderately higher than the typical business or commercial five-year fixed rates being extended at that time . the prime rate decreased by 1.50 % in march of 2020 to 3.25 % , which is now comparable to the typical rate of a five-year fixed-rate loan . the commercial or business fixed rates do increase with longer fixed terms or lower credit quality . in terms of the variable rate pricing , nearly all variable rate loans offered are prime-based . management is able to price loan customers with higher levels of credit risk at prime plus pricing , such as prime plus 0.75 % , which amounted to 4.00 % at december 31 , 2020 , still a relatively low rate . however , only a small minority of the loans in the commercial and agricultural portfolios are at these higher rates due to the strong credit quality of the corporation 's borrowers and market competition . competition in the immediate market area has been pricing select shorter-term fixed-rate commercial and agricultural lending rates below 3.25 % for the strongest loan credits . tax equivalent yields on the corporation 's securities decreased by 49 basis points for the year ended december 31 , 2020 , compared to 2019. the corporation 's securities portfolio consists of approximately 79 % fixed income debt instruments and 21 % variable rate product as of december 31 , 2020. the corporation 's taxable securities experienced a 64 basis-point decrease in yield for the year ended december 31 , 2020 , compared to 2019. security reinvestment in 2020 has been occurring at lower rates due to the significant decline in u.s. treasury rates . the sharp growth in the investment portfolio during a period of very low rates also contributed to the decline in average security yield . this large amount of new investment was caused by the significant influx of deposits , which caused excess liquidity . the sharpest growth in the securities portfolio occurred in the fourth quarter . in addition to these negative influences , the corporation 's u.s. agency mortgage-backed securities and collateralized mortgage obligations experience faster principal prepayments as market rates decrease , causing the amortization of premium to increase , effectively decreasing the yield . the yield on tax-exempt securities decreased by 20 basis points in 2020 compared to 2019. for the corporation , these bonds consist entirely of tax-free municipal bonds . while the tax-exempt yields on municipal bonds declined with the tax rate change at the end of 2017 , yields became more attractive again during the latter part of 2019 and throughout 2020. management began investing in more of these bonds in 2020 as yields stood out and provided better returns than other sectors of the portfolio . the interest rate paid on deposits decreased for the year ended december 31 , 2020 , from the same period in 2019. management follows a disciplined pricing strategy on core deposit products that are not rate sensitive , meaning that the balances do not fluctuate significantly when interest rates change . rates on interest-bearing checking accounts and money market accounts were decreased in 2020 , resulting in a decrease in the cost of funds on these accounts of 47 basis points . savings account rates were also decreased during the year resulting in a two basis point reduction in the cost of funds associated with these accounts . additionally , the cost of funds on time deposits decreased by six basis points during 2020. typically , the corporation sees increases in core deposit products during periods when consumers are not confident in the stock market and economic conditions deteriorate . during these periods , there is a “ flight to safety ” to federally insured deposits . this trend occurred in 2020. as the rate between time deposits and core deposits narrowed , many customers chose to transfer funds from maturing time deposits into checking and savings accounts . since the financial crisis , depositors have been more concerned about the financial health of their financial institution . this concern affects their desire to obtain the best possible market interest rates . this trend benefits the corporation 40 enb financial corp management 's discussion and analysis due to its high capital levels and track record of strong and stable earnings . the corporation 's bauer financial rating of 5 , the highest level of their rating scale , has assisted the bank in gaining core deposits over the past several years . the corporation 's average rate on borrowed funds increased by 39 basis points from 2019 to 2020 , as fhlb borrowings were paid off early throughout the year accelerating $ 234,000 of interest expense . provision for loan losses the allowance for credit losses provides for losses inherent in the loan portfolio as determined by a quarterly analysis and calculation of various factors related to the loan portfolio . the amount of the provision reflects the adjustment that management determines is necessary to ensure that the allowance for credit losses is adequate to cover any losses inherent in the loan portfolio . the corporation gives special attention to the level of underperforming loans when calculating the necessary provision for loan losses . the analysis of the credit loss allowance takes into consideration , among other things , the following factors : · levels and trends in delinquencies , non-accruals , and charge-offs , · levels of classified loans , · trends within the loan portfolio , · changes in lending policies

cash and cash equivalents cash and cash equivalents consist of the cash on hand in the corporation 's vaults , operational transaction accounts with the federal reserve bank ( frb ) , and deposits in other banks . the frb requires a specified amount of cash available either in vault cash or in an frb account . known as cash reserves , these funds provide for the daily clearing house activity of the corporation and fluctuate based on the volume of each day 's transactions . beyond these requirements , the corporation maintains additional cash levels as part of management 's active asset liability and liquidity strategy . management has been carrying larger cash balances as a result of the large increase in deposit balances during 2020 with lower levels of loan growth . additionally , higher cash balances provide an immediate hedge against interest rate risk and liquidity risk . as of december 31 , 2020 , the corporation had $ 94.9 million in cash and cash equivalents , compared to $ 41.1 million as of december 31 , 2019. the overnight rate that the federal reserve bank pays on excess cash balances fluctuates as the overnight federal funds rate fluctuates and as of december 31 , 2020 , it stood at 0.10 % . the corporation does not aim to keep excess cash at the frb as the overnight rate is much less then rates received on balances held in correspondent money market accounts . management invests excess cash in three money market accounts at other financial institutions .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash and cash equivalents cash and cash equivalents consist of the cash on hand in the corporation 's vaults , operational transaction accounts with the federal reserve bank ( frb ) , and deposits in other banks . the frb requires a specified amount of cash available either in vault cash or in an frb account . known as cash reserves , these funds provide for the daily clearing house activity of the corporation and fluctuate based on the volume of each day 's transactions . beyond these requirements , the corporation maintains additional cash levels as part of management 's active asset liability and liquidity strategy . management has been carrying larger cash balances as a result of the large increase in deposit balances during 2020 with lower levels of loan growth . additionally , higher cash balances provide an immediate hedge against interest rate risk and liquidity risk . as of december 31 , 2020 , the corporation had $ 94.9 million in cash and cash equivalents , compared to $ 41.1 million as of december 31 , 2019. the overnight rate that the federal reserve bank pays on excess cash balances fluctuates as the overnight federal funds rate fluctuates and as of december 31 , 2020 , it stood at 0.10 % . the corporation does not aim to keep excess cash at the frb as the overnight rate is much less then rates received on balances held in correspondent money market accounts . management invests excess cash in three money market accounts at other financial institutions . ``` Suspicious Activity Report : on march 16 , 2020 , the fed also announced action to inject more liquidity into the financial system by purchasing up to $ 500 billion of u.s. treasuries and $ 200 billion of mortgage-backed securities . all major stock exchanges experienced dramatic sell-offs . the dow , which had peaked at 29,568 in february , closed on friday , march 20 , 2020 at 19,174 , down 10,394 points , or 35 % . nasdaq was down 30 % , while the s & p 500 was down 32 % . even with a significant equity market recovery since the initial impact of covid-19 , economic conditions remain uncertain . with the closing of non-essential businesses throughout various parts of the country for a number of months and a continued impact to consumer spending , it is anticipated that the financial impact will be long-term . the coronavirus aid relief and economic security act , also known as the cares act , was a $ 2.2 trillion economic stimulus bill passed by congress and signed into law on march 27 , 2020 , by president donald trump . the major provisions of the cares act were direct small business aid for employers with fewer than 500 employees ; direct deposit stimulus payments to american households ; enhanced unemployment compensation benefits ; and direct aid to hospitals and health care 33 enb financial corp management 's discussion and analysis providers . the paycheck protection program ( ppp ) was part of this legislation , which provided relief to businesses and organizations provided they would retain their workforce and act within the provisions of the plan . the ppp was responsible for the corporation generating $ 77.7 million of loans by september 30 , 2020 , which was the highpoint in ppp loans for 2020. by december 31 , 2020 , ppp loan balances declined to $ 48.0 million , as a result of loan forgiveness and payoffs . after december 31 , 2020 , but prior to the filing of this form 10-k , legislation for a second round of ppp loans was passed , which resulted in the corporation 's total ppp loans increasing again in early 2021. consistent with the marketplace , the impact of the second round of ppp was not near as large as the first round . management anticipated that $ 25 million to $ 30 million of ppp loans would be generated in the second round . prior to the filing of this report , the corporation 's total ppp loans had again started to decline due to further loan forgiveness and payoffs . the economic impact of covid-19 had both negative and positive impacts on the corporation 's financial results . the corporation was able to achieve a higher level of earnings in 2020 than in 2019 , but the efficiency of these earnings was reduced . the pandemic caused a very low interest rate environment , which in turn caused a much larger balance sheet with a historic increase in deposits , increasing the corporation 's net interest income , despite a lower net interest margin . the corporation 's net interest income was also increased by the recognition of ppp loan fee income . offsetting the increase in net interest income was a larger increase in the provision for loan losses . as a result of the pandemic , management was guarded about expected increases in loan losses and higher associated provision for loan losses . management did incur $ 2.2 million more provision for loan loss expense in 2020 than it did in 2019 , however much of the provision increase was focused on a very small number of commercial loans . it remains to be determined what the long-term economic impact of covid-19 will be on the corporation 's borrowers and how it will affect the corporation 's forward earnings . the corporation recorded net income of $ 12,299,000 for the year ended december 31 , 2020 , a 7.9 % increase from the $ 11,395,000 earned during the same period in 2019. the 2019 net income was 16.9 % higher than the 2018 net income of $ 9,749,000. earnings per share , basic and diluted , were $ 2.20 in 2020 , compared to $ 2.01 in 2019 , and $ 1.71 in 2018. the increase in the corporation 's 2020 earnings was caused primarily by an increase in mortgage gains from selling mortgage assets on the secondary market . these gains increased by $ 3,914,000 , or 202.2 % in 2020 compared to 2019 due to a high volume of mortgage refinancings stemming from the very low interest rate environment as well as high margins received on loans sold on the secondary market . the corporation 's 2020 earnings were also aided by an increase in net interest income of $ 1,630,000 , or 4.5 % . net interest income accounts for 71 % of the gross income stream of the corporation . the corporation 's net interest margin decreased in 2020 to 3.24 % , from 3.53 % in 2019. loan yields decreased as a result of the federal reserve rate decrease in the first quarter of 2020 , immediately impacting the yields on the corporation 's variable rate loans . the decline in interest expense helped to partially offset the declining asset yields , but to a much smaller degree . the financial services industry uses two primary performance measurements to gauge performance : return on average assets ( roa ) and return on average equity ( roe ) . roa measures how efficiently a bank generates income based on the amount of assets or size of a company . roe measures the efficiency of a company in generating income based on the amount of equity or capital utilized . the latter measurement typically receives more attention from shareholders . the corporation 's 2020 roa was 0.96 % , compared to 1.01 % in 2019. story_separator_special_tag a result of the growth in balances as well as ppp fees that caused an increase in interest and fees on loans . loan pricing was challenging in 2020 as a result of the very low rate environment and competition resulting in fixed-rate loans being priced at very low levels and variable-rate loans priced at the prime rate or below . the prime rate was 4.75 % as of december 31 , 2019 , and was moderately higher than the typical business or commercial five-year fixed rates being extended at that time . the prime rate decreased by 1.50 % in march of 2020 to 3.25 % , which is now comparable to the typical rate of a five-year fixed-rate loan . the commercial or business fixed rates do increase with longer fixed terms or lower credit quality . in terms of the variable rate pricing , nearly all variable rate loans offered are prime-based . management is able to price loan customers with higher levels of credit risk at prime plus pricing , such as prime plus 0.75 % , which amounted to 4.00 % at december 31 , 2020 , still a relatively low rate . however , only a small minority of the loans in the commercial and agricultural portfolios are at these higher rates due to the strong credit quality of the corporation 's borrowers and market competition . competition in the immediate market area has been pricing select shorter-term fixed-rate commercial and agricultural lending rates below 3.25 % for the strongest loan credits . tax equivalent yields on the corporation 's securities decreased by 49 basis points for the year ended december 31 , 2020 , compared to 2019. the corporation 's securities portfolio consists of approximately 79 % fixed income debt instruments and 21 % variable rate product as of december 31 , 2020. the corporation 's taxable securities experienced a 64 basis-point decrease in yield for the year ended december 31 , 2020 , compared to 2019. security reinvestment in 2020 has been occurring at lower rates due to the significant decline in u.s. treasury rates . the sharp growth in the investment portfolio during a period of very low rates also contributed to the decline in average security yield . this large amount of new investment was caused by the significant influx of deposits , which caused excess liquidity . the sharpest growth in the securities portfolio occurred in the fourth quarter . in addition to these negative influences , the corporation 's u.s. agency mortgage-backed securities and collateralized mortgage obligations experience faster principal prepayments as market rates decrease , causing the amortization of premium to increase , effectively decreasing the yield . the yield on tax-exempt securities decreased by 20 basis points in 2020 compared to 2019. for the corporation , these bonds consist entirely of tax-free municipal bonds . while the tax-exempt yields on municipal bonds declined with the tax rate change at the end of 2017 , yields became more attractive again during the latter part of 2019 and throughout 2020. management began investing in more of these bonds in 2020 as yields stood out and provided better returns than other sectors of the portfolio . the interest rate paid on deposits decreased for the year ended december 31 , 2020 , from the same period in 2019. management follows a disciplined pricing strategy on core deposit products that are not rate sensitive , meaning that the balances do not fluctuate significantly when interest rates change . rates on interest-bearing checking accounts and money market accounts were decreased in 2020 , resulting in a decrease in the cost of funds on these accounts of 47 basis points . savings account rates were also decreased during the year resulting in a two basis point reduction in the cost of funds associated with these accounts . additionally , the cost of funds on time deposits decreased by six basis points during 2020. typically , the corporation sees increases in core deposit products during periods when consumers are not confident in the stock market and economic conditions deteriorate . during these periods , there is a “ flight to safety ” to federally insured deposits . this trend occurred in 2020. as the rate between time deposits and core deposits narrowed , many customers chose to transfer funds from maturing time deposits into checking and savings accounts . since the financial crisis , depositors have been more concerned about the financial health of their financial institution . this concern affects their desire to obtain the best possible market interest rates . this trend benefits the corporation 40 enb financial corp management 's discussion and analysis due to its high capital levels and track record of strong and stable earnings . the corporation 's bauer financial rating of 5 , the highest level of their rating scale , has assisted the bank in gaining core deposits over the past several years . the corporation 's average rate on borrowed funds increased by 39 basis points from 2019 to 2020 , as fhlb borrowings were paid off early throughout the year accelerating $ 234,000 of interest expense . provision for loan losses the allowance for credit losses provides for losses inherent in the loan portfolio as determined by a quarterly analysis and calculation of various factors related to the loan portfolio . the amount of the provision reflects the adjustment that management determines is necessary to ensure that the allowance for credit losses is adequate to cover any losses inherent in the loan portfolio . the corporation gives special attention to the level of underperforming loans when calculating the necessary provision for loan losses . the analysis of the credit loss allowance takes into consideration , among other things , the following factors : · levels and trends in delinquencies , non-accruals , and charge-offs , · levels of classified loans , · trends within the loan portfolio , · changes in lending policies

as electronic payment transaction volumes increase , third-party processors tend to provide competition to our solutions , particularly among customers that do not seek to differentiate their electronic payment offerings or are eliminating banks from the payments service , reducing the need for our solutions . as consolidation in the financial services industry continues , we anticipate that competition for those customers will intensify . adoption of cloud technology . to leverage lower-cost computing technologies , some banks , financial intermediaries , merchants and corporates are seeking to transition their systems to make use of cloud technology . our investments provide us the grounding to deliver cloud capabilities in the future . market sizing data from ovum indicates that spend on saas and paas payment systems is growing faster than spend on installed applications . electronic payments fraud and compliance . as electronic payment transaction volumes increase , organized criminal organizations continue to find ways to commit a growing volume of fraudulent transactions using a wide range of techniques . banks , financial intermediaries , merchants and corporates continue to seek ways to leverage new technologies to identify and prevent fraudulent transactions and other attacks such as denial of service attacks . due to concerns with international terrorism and money laundering , banks and financial intermediaries in particular are being faced with increasing scrutiny and regulatory pressures . we continue to see opportunity to offer our fraud detection solutions to help customers manage the growing levels of electronic payments fraud and compliance activity . adoption of smartcard technology . in many markets , card issuers are being required to issue new cards with embedded chip technology , with the liability shift having gone into effect in 2015 in the united states . chip-based cards are more secure , harder to copy , and offer the opportunity for multiple functions on one card ( e.g . , debit , credit , electronic purse , identification , health records , etc . ) . this results in greater card-not-present fraud ( e.g . , fraud at ecommerce sites ) . single euro payments area ( sepa ) . the sepa , primarily focused on the european economic community and the u.k. , is designed to facilitate lower costs for cross-border payments and reduce timeframes for settling electronic payment transactions . the transition to sepa payment mechanisms will drive more volume to these 34 systems with the potential to cause banks to review the capabilities of the systems supporting these payments . our retail payments and real-time payments solutions facilitate key functions that help banks and financial intermediaries address these mandated regulations . european payment service directive ( psd2 ) . psd2 , which was ratified by the european parliament in 2015 , required member states to implement new payments regulations in 2018. the xs2a provision effectively creates a new market opportunity where banks in european union member countries must provide open api standards to customer data , thus allowing authorized third-party providers to enter the market . financial institution consolidation . consolidation continues on a national and international basis , as financial institutions seek to add market share and increase overall efficiency . such consolidations have increased , and may continue to increase , in their number , size , and market impact as a result of recent economic conditions affecting the banking and financial industries . there are several potential negative effects of increased consolidation activity . continuing consolidation of financial institutions may result in a smaller number of existing and potential customers for our products and services . consolidation of two of our customers could result in reduced revenues if the combined entity were to negotiate greater volume discounts or discontinue use of certain of our products . additionally , if a non-customer and a customer combine and the combined entity decides to forego future use of our products , our revenue would decline . conversely , we could benefit from the combination of a non-customer and a customer when the combined entity continues use of our products and , as a larger combined entity , increases its demand for our products and services . we tend to focus on larger financial institutions as customers , often resulting in our solutions being the solutions that survive in the consolidated entity . global vendor sourcing . global and regional banks , financial intermediaries , merchants and corporates are aiming to reduce the costs in supplier management by picking suppliers who can service them across all their geographies instead of allowing each country operation to choose suppliers independently . our global footprint from both a customer and a delivery perspective enable us to be successful in this global sourced market . however , projects in these environments tend to be more complex and therefore of higher risk . electronic payments convergence . as electronic payment volumes grow and pressures to lower overall cost per transaction increase , banks and financial intermediaries are seeking methods to consolidate their payments processing across the enterprise . we believe that the strategy of using soa to allow for re-use of common electronic payment functions , such as authentication , authorization , routing and settlement , will become more common . using these techniques , banks and financial intermediaries will be able to reduce costs , increase overall service levels , enable one-to-one marketing in multiple bank channels , leverage volumes for improved pricing and liquidity , and manage enterprise risk . our product strategy is , in part , focused on this trend , by creating integrated payment functions that can be re-used by multiple bank channels , across both the consumer and wholesale bank . while this trend presents an opportunity for us , it may also expand the competition from third-party electronic payment technology and service providers specializing in other forms of electronic payments . many of these providers are larger than us and have significantly greater financial , technical and marketing resources . story_separator_special_tag the number and magnitude of such projects was lower during the year ended december 31 , 2018. operating expenses total operating expenses for the year ended december 31 , 2018 , decreased $ 55.7 million , or 6 % , as compared to the same period in 2017. during the year ended december 31 , 2017 , there was $ 46.7 million of expense recorded related to the bhmi judgment . the application of asc 606 resulted in a $ 7.5 million increase in total operating expenses for the year ended december 31 , 2018 , primarily due to differences in the timing of expense recognition for sales commissions . total operating expenses were $ 3.0 million higher for the year ended december 31 , 2018 , compared to the same period in 2017 , due to the impact of foreign currencies strengthening against the u.s. dollar . excluding the impact of the bhmi judgment , applying asc 606 , and foreign currency , total operating expenses for the year ended december 31 , 2018 , decreased $ 19.5 million , or 2 % , compared to the same period in 2017 , primarily because of lower cost of revenue and depreciation and amortization expenses , partially offset by higher research and development , selling and marketing , and general and administrative expenses . cost of revenue cost of revenue includes costs to provide saas and paas services , third-party royalties , amortization of purchased and developed software for resale , the costs of maintaining our software products , as well as the costs required to deliver , install , and support software at customer sites . saas and paas service costs include payment card interchange fees , amounts payable to banks , and payment card processing fees . maintenance costs include the efforts associated with providing the customer with upgrades , 24-hour help desk , post go-live ( remote ) support , and production-type support for software that was previously installed at a customer location . service costs include human resource costs and other incidental costs such as travel and training required for both pre go-live and post go-live support . such efforts include project management , delivery , product customization and implementation , installation support , consulting , configuration , and on-site support . 41 cost of revenue decreased $ 21.9 million , or 5 % , during the year ended december 31 , 2018 , compared to the same period in 2017. cost of revenue was $ 0.8 million higher for the year ended december 31 , 2018 , as compared to the same period in 2017 , due to the impact of foreign currencies strengthening against the u.s. dollar . excluding the impact of foreign currency , cost of revenue decreased $ 22.7 million , or 5 % , for the year ended december 31 , 2018 , as compared to the same period in 2017 , primarily due to lower personnel and related costs of $ 29.5 million , partially offset by a $ 6.8 million increase in payment card interchange and processing fees . research and development research and development ( “r & d” ) expenses are primarily human resource costs related to the creation of new products , improvements made to existing products as well as compatibility with new operating system releases and generations of hardware . r & d expense increased $ 6.7 million , or 5 % , during the year ended december 31 , 2018 , as compared to the same period in 2017. r & d expense was $ 0.5 million higher for the year ended december 31 , 2018 , as compared to the same period in 2017 , due to the impact of foreign currencies strengthening against the u.s. dollar . excluding the impact of foreign currency , r & d expense increased $ 6.2 million , or 5 % , for the year ended december 31 , 2018 , as compared to the same period in 2017 , primarily due to an increase in personnel and related expenses . selling and marketing selling and marketing includes both the costs related to selling our products to current and prospective customers as well as the costs related to promoting the company , its products and the research efforts required to measure customers ' future needs and satisfaction levels . selling costs are primarily the human resource and travel costs related to the effort expended to license our products and services to current and potential clients within defined territories and or industries as well as the management of the overall relationship with customer accounts . selling costs also include the costs associated with assisting distributors in their efforts to sell our products and services in their respective local markets . marketing costs include costs incurred to promote the company and its products , perform or acquire market research to help the company better understand impending changes in customer demand for and of our products , and the costs associated with measuring customers ' opinions toward the company , our products and personnel . selling and marketing expense increased $ 10.0 million , or 9 % , during the year ended december 31 , 2018 , as compared to the same period in 2017. the application of asc 606 resulted in a $ 7.5 million increase in selling and marketing expense for the year ended december 31 , 2018 , as compared to the same period in 2017. selling and marketing expense was $ 0.8 million higher for the year ended december 31 , 2018 , as compared to the same period in 2017 , due to the impact of foreign currencies strengthening against the u.s. dollar . excluding the impact of applying asc 606 and foreign currency , selling and marketing expense increased $ 1.7 million , or 2 % , for the year ended december 31 , 2018 , as compared to the same period in 2017 ,

cash flow from investing activities net cash flows used by investing activities for the year ended december 31 , 2018 , was $ 45.4 million compared to $ 54.4 million during the same period in 2017. during 2018 , we used cash of $ 43.9 million to purchase software , property and equipment compared to $ 54.4 million during the same period in 2017. cash flow from financing activities net cash flows used by financing activities for the year ended december 31 , 2018 , was $ 57.7 million compared to $ 98.1 million during the same period in 2017. during 2018 , we received proceeds of $ 400.0 million from the issuance of the 2026 notes . we used $ 300.0 million of the proceeds to redeem , in full , the company 's outstanding 6.375 % senior notes due 2020 ( “2020 notes” ) and repaid $ 109.3 million on the term credit facility . in addition , during 2018 , we received proceeds of $ 22.8 million from the exercises of stock options and the issuance of common stock under our 2017 employee stock purchase plan and used $ 2.6 million for the repurchase of restricted stock for tax withholdings . during 2018 , we also used $ 54.5 million to repurchase common stock . during 2017 , we received net proceeds of $ 29.0 million on the term credit facility and repaid a net of $ 86.0 million on the revolving credit facility . in addition , during 2017 , we used $ 37.4 million to repurchase shares of common stock . during 2017 , we also received proceeds of $ 16.8 million from the exercises of stock options and issuance of common stock under our 2017 employee stock purchase plan , and used $ 5.3 million for the repurchase of restricted stock for tax withholdings .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 investing activities net cash flows used by investing activities for the year ended december 31 , 2018 , was $ 45.4 million compared to $ 54.4 million during the same period in 2017. during 2018 , we used cash of $ 43.9 million to purchase software , property and equipment compared to $ 54.4 million during the same period in 2017. cash flow from financing activities net cash flows used by financing activities for the year ended december 31 , 2018 , was $ 57.7 million compared to $ 98.1 million during the same period in 2017. during 2018 , we received proceeds of $ 400.0 million from the issuance of the 2026 notes . we used $ 300.0 million of the proceeds to redeem , in full , the company 's outstanding 6.375 % senior notes due 2020 ( “2020 notes” ) and repaid $ 109.3 million on the term credit facility . in addition , during 2018 , we received proceeds of $ 22.8 million from the exercises of stock options and the issuance of common stock under our 2017 employee stock purchase plan and used $ 2.6 million for the repurchase of restricted stock for tax withholdings . during 2018 , we also used $ 54.5 million to repurchase common stock . during 2017 , we received net proceeds of $ 29.0 million on the term credit facility and repaid a net of $ 86.0 million on the revolving credit facility . in addition , during 2017 , we used $ 37.4 million to repurchase shares of common stock . during 2017 , we also received proceeds of $ 16.8 million from the exercises of stock options and issuance of common stock under our 2017 employee stock purchase plan , and used $ 5.3 million for the repurchase of restricted stock for tax withholdings . ``` Suspicious Activity Report : as electronic payment transaction volumes increase , third-party processors tend to provide competition to our solutions , particularly among customers that do not seek to differentiate their electronic payment offerings or are eliminating banks from the payments service , reducing the need for our solutions . as consolidation in the financial services industry continues , we anticipate that competition for those customers will intensify . adoption of cloud technology . to leverage lower-cost computing technologies , some banks , financial intermediaries , merchants and corporates are seeking to transition their systems to make use of cloud technology . our investments provide us the grounding to deliver cloud capabilities in the future . market sizing data from ovum indicates that spend on saas and paas payment systems is growing faster than spend on installed applications . electronic payments fraud and compliance . as electronic payment transaction volumes increase , organized criminal organizations continue to find ways to commit a growing volume of fraudulent transactions using a wide range of techniques . banks , financial intermediaries , merchants and corporates continue to seek ways to leverage new technologies to identify and prevent fraudulent transactions and other attacks such as denial of service attacks . due to concerns with international terrorism and money laundering , banks and financial intermediaries in particular are being faced with increasing scrutiny and regulatory pressures . we continue to see opportunity to offer our fraud detection solutions to help customers manage the growing levels of electronic payments fraud and compliance activity . adoption of smartcard technology . in many markets , card issuers are being required to issue new cards with embedded chip technology , with the liability shift having gone into effect in 2015 in the united states . chip-based cards are more secure , harder to copy , and offer the opportunity for multiple functions on one card ( e.g . , debit , credit , electronic purse , identification , health records , etc . ) . this results in greater card-not-present fraud ( e.g . , fraud at ecommerce sites ) . single euro payments area ( sepa ) . the sepa , primarily focused on the european economic community and the u.k. , is designed to facilitate lower costs for cross-border payments and reduce timeframes for settling electronic payment transactions . the transition to sepa payment mechanisms will drive more volume to these 34 systems with the potential to cause banks to review the capabilities of the systems supporting these payments . our retail payments and real-time payments solutions facilitate key functions that help banks and financial intermediaries address these mandated regulations . european payment service directive ( psd2 ) . psd2 , which was ratified by the european parliament in 2015 , required member states to implement new payments regulations in 2018. the xs2a provision effectively creates a new market opportunity where banks in european union member countries must provide open api standards to customer data , thus allowing authorized third-party providers to enter the market . financial institution consolidation . consolidation continues on a national and international basis , as financial institutions seek to add market share and increase overall efficiency . such consolidations have increased , and may continue to increase , in their number , size , and market impact as a result of recent economic conditions affecting the banking and financial industries . there are several potential negative effects of increased consolidation activity . continuing consolidation of financial institutions may result in a smaller number of existing and potential customers for our products and services . consolidation of two of our customers could result in reduced revenues if the combined entity were to negotiate greater volume discounts or discontinue use of certain of our products . additionally , if a non-customer and a customer combine and the combined entity decides to forego future use of our products , our revenue would decline . conversely , we could benefit from the combination of a non-customer and a customer when the combined entity continues use of our products and , as a larger combined entity , increases its demand for our products and services . we tend to focus on larger financial institutions as customers , often resulting in our solutions being the solutions that survive in the consolidated entity . global vendor sourcing . global and regional banks , financial intermediaries , merchants and corporates are aiming to reduce the costs in supplier management by picking suppliers who can service them across all their geographies instead of allowing each country operation to choose suppliers independently . our global footprint from both a customer and a delivery perspective enable us to be successful in this global sourced market . however , projects in these environments tend to be more complex and therefore of higher risk . electronic payments convergence . as electronic payment volumes grow and pressures to lower overall cost per transaction increase , banks and financial intermediaries are seeking methods to consolidate their payments processing across the enterprise . we believe that the strategy of using soa to allow for re-use of common electronic payment functions , such as authentication , authorization , routing and settlement , will become more common . using these techniques , banks and financial intermediaries will be able to reduce costs , increase overall service levels , enable one-to-one marketing in multiple bank channels , leverage volumes for improved pricing and liquidity , and manage enterprise risk . our product strategy is , in part , focused on this trend , by creating integrated payment functions that can be re-used by multiple bank channels , across both the consumer and wholesale bank . while this trend presents an opportunity for us , it may also expand the competition from third-party electronic payment technology and service providers specializing in other forms of electronic payments . many of these providers are larger than us and have significantly greater financial , technical and marketing resources . story_separator_special_tag the number and magnitude of such projects was lower during the year ended december 31 , 2018. operating expenses total operating expenses for the year ended december 31 , 2018 , decreased $ 55.7 million , or 6 % , as compared to the same period in 2017. during the year ended december 31 , 2017 , there was $ 46.7 million of expense recorded related to the bhmi judgment . the application of asc 606 resulted in a $ 7.5 million increase in total operating expenses for the year ended december 31 , 2018 , primarily due to differences in the timing of expense recognition for sales commissions . total operating expenses were $ 3.0 million higher for the year ended december 31 , 2018 , compared to the same period in 2017 , due to the impact of foreign currencies strengthening against the u.s. dollar . excluding the impact of the bhmi judgment , applying asc 606 , and foreign currency , total operating expenses for the year ended december 31 , 2018 , decreased $ 19.5 million , or 2 % , compared to the same period in 2017 , primarily because of lower cost of revenue and depreciation and amortization expenses , partially offset by higher research and development , selling and marketing , and general and administrative expenses . cost of revenue cost of revenue includes costs to provide saas and paas services , third-party royalties , amortization of purchased and developed software for resale , the costs of maintaining our software products , as well as the costs required to deliver , install , and support software at customer sites . saas and paas service costs include payment card interchange fees , amounts payable to banks , and payment card processing fees . maintenance costs include the efforts associated with providing the customer with upgrades , 24-hour help desk , post go-live ( remote ) support , and production-type support for software that was previously installed at a customer location . service costs include human resource costs and other incidental costs such as travel and training required for both pre go-live and post go-live support . such efforts include project management , delivery , product customization and implementation , installation support , consulting , configuration , and on-site support . 41 cost of revenue decreased $ 21.9 million , or 5 % , during the year ended december 31 , 2018 , compared to the same period in 2017. cost of revenue was $ 0.8 million higher for the year ended december 31 , 2018 , as compared to the same period in 2017 , due to the impact of foreign currencies strengthening against the u.s. dollar . excluding the impact of foreign currency , cost of revenue decreased $ 22.7 million , or 5 % , for the year ended december 31 , 2018 , as compared to the same period in 2017 , primarily due to lower personnel and related costs of $ 29.5 million , partially offset by a $ 6.8 million increase in payment card interchange and processing fees . research and development research and development ( “r & d” ) expenses are primarily human resource costs related to the creation of new products , improvements made to existing products as well as compatibility with new operating system releases and generations of hardware . r & d expense increased $ 6.7 million , or 5 % , during the year ended december 31 , 2018 , as compared to the same period in 2017. r & d expense was $ 0.5 million higher for the year ended december 31 , 2018 , as compared to the same period in 2017 , due to the impact of foreign currencies strengthening against the u.s. dollar . excluding the impact of foreign currency , r & d expense increased $ 6.2 million , or 5 % , for the year ended december 31 , 2018 , as compared to the same period in 2017 , primarily due to an increase in personnel and related expenses . selling and marketing selling and marketing includes both the costs related to selling our products to current and prospective customers as well as the costs related to promoting the company , its products and the research efforts required to measure customers ' future needs and satisfaction levels . selling costs are primarily the human resource and travel costs related to the effort expended to license our products and services to current and potential clients within defined territories and or industries as well as the management of the overall relationship with customer accounts . selling costs also include the costs associated with assisting distributors in their efforts to sell our products and services in their respective local markets . marketing costs include costs incurred to promote the company and its products , perform or acquire market research to help the company better understand impending changes in customer demand for and of our products , and the costs associated with measuring customers ' opinions toward the company , our products and personnel . selling and marketing expense increased $ 10.0 million , or 9 % , during the year ended december 31 , 2018 , as compared to the same period in 2017. the application of asc 606 resulted in a $ 7.5 million increase in selling and marketing expense for the year ended december 31 , 2018 , as compared to the same period in 2017. selling and marketing expense was $ 0.8 million higher for the year ended december 31 , 2018 , as compared to the same period in 2017 , due to the impact of foreign currencies strengthening against the u.s. dollar . excluding the impact of applying asc 606 and foreign currency , selling and marketing expense increased $ 1.7 million , or 2 % , for the year ended december 31 , 2018 , as compared to the same period in 2017 ,

forward-looking statements can be identified by the use of forward-looking terminology , such as `` anticipate `` , `` believe `` , `` expect `` , `` plan `` , `` intend `` , `` seek `` , `` estimate `` , `` project `` , `` could `` , `` may `` or the negative thereof or other variations thereon , or by discussions of strategy that involve risks and uncertainties . management wishes to caution the readers of the forward-looking statements that any such statements that are contained in this report reflect our current beliefs with respect to future events and involve known and unknown risks , uncertainties and other factors , including , but not limited to , economic , competitive , regulatory , technological , key employees , and general business factors affecting our operations , markets , growth , services , products , licenses and other factors , some of which are described in this report including in “ risk factors ” in item 1a and some of which are discussed in our other filings with the securities and exchange commission . these forward-looking statements are only estimates or predictions . no assurances can be given regarding the achievement of future results , as actual results may differ materially as a result of risks facing our company , and actual events may differ from the assumptions underlying the statements that have been made regarding anticipated events . these risk factors should be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue . all written and oral forward looking statements made in connection with this report that are attributable to our company or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements . given these uncertainties , we caution investors not to unduly rely on our forward-looking statements . we do not undertake any obligation to review or confirm analysts ' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events , except as required by applicable law or regulation . business overview & recent developments in november 2014 , we received a good manufacturing practices ( “ gmp ” ) certificate issued by the china food and drug administration ( “ cfda ” ) for dried powder and liquid injectable product lines produced at our new manufacturing facility , and since then we have restarted production of products with those formulations after a suspension of production from year end 2013 due to our inability to meet a gmp upgrade deadline . gmp compliance timing issues also caused us to miss certain drug bids ( generally with terms of around two years ) in several chinese provinces prior to november 2014. these missed bids negatively impacted our previously-established market share in those provinces , and reduced our overall sales in 2015 and 2016. nevertheless , we continue to concentrate on enhancing the fundamentals of our business . in january and december 2015 , we completed upgrades to our manufacturing facilities and received new gmp certificates for our tablet and capsule product lines and for the cephalosporin product lines at our old factories . upgrades to our oral solution product lines were completed ahead of the deadline , which has positioned us to better meet market demand . 51 in order to comply with requests from the central committee of the communist party of china and state council to use the strictest standards to monitor and regulate food and drug production and to further rectify and standardize drug distribution , cfda issued the “ notice of rectification against illegal operations regarding drug logistics & distribution ” on may 3 , 2016. because it had become the top priority for pharmaceutical distributors , including our distributors , to comply with this government policy , our distributors ' time and efforts were focused on passing cfda inspection , which delayed their ordinary promotion efforts and purchase and distribution activities , which further negatively impacted the sales performance of our company during the second and third quarters of 2016. increasing our sales remains our top priority . through the continued implementation of sales promotion , the company realized sales increases in the fourth quarter of 2016 compared to the previous quarter . management will continue to vigorously promote sales by actively participating in the recent opening of the new provincial drug tender and participation in drug exhibitions . in order to support our existing products package we remain focused on pipeline development . we have experienced delays in obtaining approval for certain products in our pipeline because of revisions of and enhancements to cfda approval criteria and processes . these revisions have resulted in additional supplemental materials and trials , higher costs , and longer approval times for certain applications . on march 5 , 2016 , the chinese state council issued `` opinions on carrying out consistency evaluations of the quality and efficacy of generic drugs `` ( the “ opinions ” ) . the opinions define the object of evaluations and establish deadlines , determine selection criteria for reference drugs , call for a rational selection of evaluation methods , and identify pharmaceutical manufacturers as the principle generic drug consistency evaluation , and sets forth corresponding incentives . subsequently , the cfda issued “ comments from the general office of the state council on the consistency evaluations of the efficacy and quality of generic drug ” in may 2016 , in order to further elaborate on assessment processes and related technical rules . story_separator_special_tag going forward , we expect to see continued pricing pressure on most of our products . however , new products could help support overall gross margin once they are launched . selling expenses our selling expenses for the year ended december 31 , 2016 were $ 4.0 million , a decrease of $ 0.3 million , compared to $ 4.3 million for the year ended december 31 , 2015. selling expenses accounted for 25.9 % of the total revenue in 2016 compared to 21.1 % in 2015. the increase was mainly the result of additional marketing , consulting and product promotional efforts in certain chinese provinces . because of adjustments in our sales practices resulting from healthcare reform policies , despite the overall decrease in sales , we require additional personnel and expenses to support our sales and the collection of accounts receivable . 55 general and administrative expenses our general and administrative expenses for the year ended december 31 , 2016 were $ 2.3 million , which represented an increase of $ 0.4 million compared to $ 1.9 million in 2015. general and administrative expenses accounted for 14.6 % and 9.3 % of our total revenues in 2016 and 2015 , respectively . research and development expenses our research and development expenses for the year ended december 31 , 2016 were $ 0.4 million , compared to $ 1.0 million in 2015. research and development expenses accounted for 2.4 % and 4.7 % of our total revenues in 2016 and 2015 , respectively . the consistency evaluations discussed under the “ business overview & recent developments ” section here of is expected to have a significant impact on all generic products not only in our pipeline , but also throughout the existing chinese market . because of the continuous introduction of detailed implementation rules under this policy , our pipeline did not have any further development in 2016. but , we are still actively adapting to this policy , and have filed reagent references with the cfda for several key products in 2016. bad debt expenses our bad debt expenses for the year ended december 31 , 2016 was $ 1.1 million , which represented a decrease of $ 4.9 million compared to $ 6.0 million in 2015. during 2015 , we also recognized bad debt expenses of $ 4.1 million related to advances made to suppliers based on our evaluations of the realization likelihood of payments . the decline in our bad debt expenses was mainly the result of the decline in our revenues in recent years , which also led to the corresponding decline in the net amount of accounts receivable aging over one year ( according to our current accounting policy , we are required to recognize a bad debt allowance 70 % of the accounts receivable that are between 365 days to 720 days old ) . in general , our normal credit or payment terms extended to customers are for 90 days . this has not changed in recent years . due to the peculiarity of the chinese pharmaceutical market environment , deferred payments to pharmaceutical companies by state-owned hospitals and local medicine distributors are a normal phenomenon . our customers are primarily pharmaceutical distributors that sell our products to mostly government-backed hospitals . therefore , the aging of our receivables from our customers tends to be longer-term . the amount of net accounts receivable that were past due ( or the amount of accounts receivable that were more than 90 days old ) was $ 3.9 million and $ 5.1 million as of december 31 , 2016 and 2015 , respectively . the following table illustrates our gross accounts receivable aging distribution in terms of percentage of total accounts receivable as of december 31 , 2016 and 2015 : 56 replace_table_token_6_th our bad debt allowance estimate is currently 10 % of accounts receivable that are less than 365 days old , 70 % of accounts receivable that are between 365 days and 720 days old , and 100 % of accounts receivable that are greater than 720 days old . we recognize bad debt expenses per actual write-offs as well as changes of allowance for doubtful accounts . to the extent that our current allowance for doubtful accounts is higher than that of the previous period , we recognize a bad debt expense for the difference during the current period , and when the current allowance is lower than that of the previous period , we recognize a bad debt benefit for the difference . the allowance for doubtful accounts was $ 15.7 million and $ 29.4 million as of december 31 , 2016 and december 31 , 2015 , respectively . the changes in the allowances for doubtful accounts during the years ended december 31 , 2016 and 2015 were as follows : replace_table_token_7_th impairment of intangible assets our impairments for the year ended december 31 , 2016 were $ 4.0 million , compared to $ 0.1 million in 2015. as a pharmaceutical company , we have been focusing on the development and maintenance of our intangible assets , mainly in the form of medical formulas . because of recently implemented government policies such as consistency evaluations , our management made certain assessments regarding the impairment of our intangible assets as in 2016 , and identified five formulas that would likely be unable to generate positive cash flow in the foreseeable future and therefore recognized impairment loss on them accordingly . loss from operations our operating loss for the year ended december 31 , 2016 was $ 8.2 million , compared to an operating loss of $ 14.3 million in 2015 . 57 net interest expense net interest expense for the year ended december 31 , 2016 was $ 0.7 million , compared to $ 1.0 million in 2015. the decrease is primarily due to overall decreased debt levels due to repayment of the line of credit as discussed in note 7

liquidity and capital resources our principal sources of liquidity are cash generated from operations and short-term bank loans . our cash and cash equivalents were $ 2.7 million , representing 3.3 % of our total assets as of december 31 , 2016 , as compared to $ 6.2 million , representing 6.4 % of our total assets as of december 31 , 2015. all of the $ 2.7 million of cash and cash equivalents as of december 31 , 2016 , is considered to be reinvested indefinitely in our chinese subsidiary , helpson , and are not expected to be available for payment of dividends or for other payments to our parent company or to its shareholders . during 2016 , we repaid in full the balance at december 31 , 2015 of approximately $ 4.6 million under our line of credit as discussed in note 7 of the consolidated financial statements . we entered into an eight-year construction loan facility on september 21 , 2013. the total loan facility amount is rmb80,000,000 ( approximately $ 13 million ) , which had been fully utilized through may 7 , 2014. we 've accumulatively repaid the principle of rmb 11 million ( approximately $ 1.6 million ) of the construction loans per the payback schedule as of december 31 , 2016. the current portion of the construction loan facility is $ 1.4 million as of december 31 , 2016. the cash flow generated from operating activities was used to fund our daily operating expenses as well as repayment of our loan facility . 58 based on our current operating plan , management believes that cash provided by operations will be sufficient to meet our working capital needs and our anticipated capital expenditures , including expenditures for new formula acquisitions and the remaining new gmp upgrade related construction and equipment in our existing facility for the next twelve months . however , if circumstances change and we do not follow our operating plan as expected , we may be required to seek additional capital and or to reduce certain discretionary spending , which could have a material adverse effect on our ability to achieve our business objectives .

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

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 are cash generated from operations and short-term bank loans . our cash and cash equivalents were $ 2.7 million , representing 3.3 % of our total assets as of december 31 , 2016 , as compared to $ 6.2 million , representing 6.4 % of our total assets as of december 31 , 2015. all of the $ 2.7 million of cash and cash equivalents as of december 31 , 2016 , is considered to be reinvested indefinitely in our chinese subsidiary , helpson , and are not expected to be available for payment of dividends or for other payments to our parent company or to its shareholders . during 2016 , we repaid in full the balance at december 31 , 2015 of approximately $ 4.6 million under our line of credit as discussed in note 7 of the consolidated financial statements . we entered into an eight-year construction loan facility on september 21 , 2013. the total loan facility amount is rmb80,000,000 ( approximately $ 13 million ) , which had been fully utilized through may 7 , 2014. we 've accumulatively repaid the principle of rmb 11 million ( approximately $ 1.6 million ) of the construction loans per the payback schedule as of december 31 , 2016. the current portion of the construction loan facility is $ 1.4 million as of december 31 , 2016. the cash flow generated from operating activities was used to fund our daily operating expenses as well as repayment of our loan facility . 58 based on our current operating plan , management believes that cash provided by operations will be sufficient to meet our working capital needs and our anticipated capital expenditures , including expenditures for new formula acquisitions and the remaining new gmp upgrade related construction and equipment in our existing facility for the next twelve months . however , if circumstances change and we do not follow our operating plan as expected , we may be required to seek additional capital and or to reduce certain discretionary spending , which could have a material adverse effect on our ability to achieve our business objectives . ``` Suspicious Activity Report : forward-looking statements can be identified by the use of forward-looking terminology , such as `` anticipate `` , `` believe `` , `` expect `` , `` plan `` , `` intend `` , `` seek `` , `` estimate `` , `` project `` , `` could `` , `` may `` or the negative thereof or other variations thereon , or by discussions of strategy that involve risks and uncertainties . management wishes to caution the readers of the forward-looking statements that any such statements that are contained in this report reflect our current beliefs with respect to future events and involve known and unknown risks , uncertainties and other factors , including , but not limited to , economic , competitive , regulatory , technological , key employees , and general business factors affecting our operations , markets , growth , services , products , licenses and other factors , some of which are described in this report including in “ risk factors ” in item 1a and some of which are discussed in our other filings with the securities and exchange commission . these forward-looking statements are only estimates or predictions . no assurances can be given regarding the achievement of future results , as actual results may differ materially as a result of risks facing our company , and actual events may differ from the assumptions underlying the statements that have been made regarding anticipated events . these risk factors should be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue . all written and oral forward looking statements made in connection with this report that are attributable to our company or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements . given these uncertainties , we caution investors not to unduly rely on our forward-looking statements . we do not undertake any obligation to review or confirm analysts ' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events , except as required by applicable law or regulation . business overview & recent developments in november 2014 , we received a good manufacturing practices ( “ gmp ” ) certificate issued by the china food and drug administration ( “ cfda ” ) for dried powder and liquid injectable product lines produced at our new manufacturing facility , and since then we have restarted production of products with those formulations after a suspension of production from year end 2013 due to our inability to meet a gmp upgrade deadline . gmp compliance timing issues also caused us to miss certain drug bids ( generally with terms of around two years ) in several chinese provinces prior to november 2014. these missed bids negatively impacted our previously-established market share in those provinces , and reduced our overall sales in 2015 and 2016. nevertheless , we continue to concentrate on enhancing the fundamentals of our business . in january and december 2015 , we completed upgrades to our manufacturing facilities and received new gmp certificates for our tablet and capsule product lines and for the cephalosporin product lines at our old factories . upgrades to our oral solution product lines were completed ahead of the deadline , which has positioned us to better meet market demand . 51 in order to comply with requests from the central committee of the communist party of china and state council to use the strictest standards to monitor and regulate food and drug production and to further rectify and standardize drug distribution , cfda issued the “ notice of rectification against illegal operations regarding drug logistics & distribution ” on may 3 , 2016. because it had become the top priority for pharmaceutical distributors , including our distributors , to comply with this government policy , our distributors ' time and efforts were focused on passing cfda inspection , which delayed their ordinary promotion efforts and purchase and distribution activities , which further negatively impacted the sales performance of our company during the second and third quarters of 2016. increasing our sales remains our top priority . through the continued implementation of sales promotion , the company realized sales increases in the fourth quarter of 2016 compared to the previous quarter . management will continue to vigorously promote sales by actively participating in the recent opening of the new provincial drug tender and participation in drug exhibitions . in order to support our existing products package we remain focused on pipeline development . we have experienced delays in obtaining approval for certain products in our pipeline because of revisions of and enhancements to cfda approval criteria and processes . these revisions have resulted in additional supplemental materials and trials , higher costs , and longer approval times for certain applications . on march 5 , 2016 , the chinese state council issued `` opinions on carrying out consistency evaluations of the quality and efficacy of generic drugs `` ( the “ opinions ” ) . the opinions define the object of evaluations and establish deadlines , determine selection criteria for reference drugs , call for a rational selection of evaluation methods , and identify pharmaceutical manufacturers as the principle generic drug consistency evaluation , and sets forth corresponding incentives . subsequently , the cfda issued “ comments from the general office of the state council on the consistency evaluations of the efficacy and quality of generic drug ” in may 2016 , in order to further elaborate on assessment processes and related technical rules . story_separator_special_tag going forward , we expect to see continued pricing pressure on most of our products . however , new products could help support overall gross margin once they are launched . selling expenses our selling expenses for the year ended december 31 , 2016 were $ 4.0 million , a decrease of $ 0.3 million , compared to $ 4.3 million for the year ended december 31 , 2015. selling expenses accounted for 25.9 % of the total revenue in 2016 compared to 21.1 % in 2015. the increase was mainly the result of additional marketing , consulting and product promotional efforts in certain chinese provinces . because of adjustments in our sales practices resulting from healthcare reform policies , despite the overall decrease in sales , we require additional personnel and expenses to support our sales and the collection of accounts receivable . 55 general and administrative expenses our general and administrative expenses for the year ended december 31 , 2016 were $ 2.3 million , which represented an increase of $ 0.4 million compared to $ 1.9 million in 2015. general and administrative expenses accounted for 14.6 % and 9.3 % of our total revenues in 2016 and 2015 , respectively . research and development expenses our research and development expenses for the year ended december 31 , 2016 were $ 0.4 million , compared to $ 1.0 million in 2015. research and development expenses accounted for 2.4 % and 4.7 % of our total revenues in 2016 and 2015 , respectively . the consistency evaluations discussed under the “ business overview & recent developments ” section here of is expected to have a significant impact on all generic products not only in our pipeline , but also throughout the existing chinese market . because of the continuous introduction of detailed implementation rules under this policy , our pipeline did not have any further development in 2016. but , we are still actively adapting to this policy , and have filed reagent references with the cfda for several key products in 2016. bad debt expenses our bad debt expenses for the year ended december 31 , 2016 was $ 1.1 million , which represented a decrease of $ 4.9 million compared to $ 6.0 million in 2015. during 2015 , we also recognized bad debt expenses of $ 4.1 million related to advances made to suppliers based on our evaluations of the realization likelihood of payments . the decline in our bad debt expenses was mainly the result of the decline in our revenues in recent years , which also led to the corresponding decline in the net amount of accounts receivable aging over one year ( according to our current accounting policy , we are required to recognize a bad debt allowance 70 % of the accounts receivable that are between 365 days to 720 days old ) . in general , our normal credit or payment terms extended to customers are for 90 days . this has not changed in recent years . due to the peculiarity of the chinese pharmaceutical market environment , deferred payments to pharmaceutical companies by state-owned hospitals and local medicine distributors are a normal phenomenon . our customers are primarily pharmaceutical distributors that sell our products to mostly government-backed hospitals . therefore , the aging of our receivables from our customers tends to be longer-term . the amount of net accounts receivable that were past due ( or the amount of accounts receivable that were more than 90 days old ) was $ 3.9 million and $ 5.1 million as of december 31 , 2016 and 2015 , respectively . the following table illustrates our gross accounts receivable aging distribution in terms of percentage of total accounts receivable as of december 31 , 2016 and 2015 : 56 replace_table_token_6_th our bad debt allowance estimate is currently 10 % of accounts receivable that are less than 365 days old , 70 % of accounts receivable that are between 365 days and 720 days old , and 100 % of accounts receivable that are greater than 720 days old . we recognize bad debt expenses per actual write-offs as well as changes of allowance for doubtful accounts . to the extent that our current allowance for doubtful accounts is higher than that of the previous period , we recognize a bad debt expense for the difference during the current period , and when the current allowance is lower than that of the previous period , we recognize a bad debt benefit for the difference . the allowance for doubtful accounts was $ 15.7 million and $ 29.4 million as of december 31 , 2016 and december 31 , 2015 , respectively . the changes in the allowances for doubtful accounts during the years ended december 31 , 2016 and 2015 were as follows : replace_table_token_7_th impairment of intangible assets our impairments for the year ended december 31 , 2016 were $ 4.0 million , compared to $ 0.1 million in 2015. as a pharmaceutical company , we have been focusing on the development and maintenance of our intangible assets , mainly in the form of medical formulas . because of recently implemented government policies such as consistency evaluations , our management made certain assessments regarding the impairment of our intangible assets as in 2016 , and identified five formulas that would likely be unable to generate positive cash flow in the foreseeable future and therefore recognized impairment loss on them accordingly . loss from operations our operating loss for the year ended december 31 , 2016 was $ 8.2 million , compared to an operating loss of $ 14.3 million in 2015 . 57 net interest expense net interest expense for the year ended december 31 , 2016 was $ 0.7 million , compared to $ 1.0 million in 2015. the decrease is primarily due to overall decreased debt levels due to repayment of the line of credit as discussed in note 7